Dive Brief:
The 600 firms exceeded revenues of $100 billion in 2015 for the first time, growing 7.8% from 2014. Many on the list have enjoyed low and steady growth, ENR reported, for the most part eliminating the possibility of a drastic downturn ahead.
While ENR describes a generally positive environment for these large specialty contractors, it said uncertainty around the upcoming U.S. presidential election and staffing concerns also stand to impact the field in the near-term.
Dive Insight:
Although there is widespread concern about the upcoming presidential election, contractors should keep close tabs on local elections and ballot measures, which tend to have a more direct impact on business, a representative of the American Subcontractors Association told ENR. However, Anthony Guzzi, CEO of No. 2 EMCOR Group, said that the industry can prepare for pending legislation. It's the speed of executive orders, which is the purview of the president, that can leave business owners in the lurch, he said.
One trend that many of ENR's top 600 see is that large specialty contractors are being called on earlier in the construction process to participate in the design phase, due to increased use of the design-build and integrated project delivery methods, which have boosted collaboration, reduced risk and led to a more streamlined workflow. Building information modeling is also adding to production's bottom line.
A common challenge reported by specialty contractors should be no surprise to those following the industry: lean labor supplies. ENR reported that 60.6% of its survey participants experienced labor shortages, compared to 57.4% last year and 26.7% in 2012. While larger contractors reportedly have less trouble finding qualified workers, smaller companies struggle with having to pick through the stock that remains.
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