| SIC Codes: | 1741 1742 1743 1751 1752 1761 1771 1791 1793 1796 1731 1721 1081 1711 |
| NAICS Codes: | 238110 238990 238130 238140 238150 238160 238170 238190 238210 238220 238290 238310 238320 238330 238340 238350 238390 238910 238120 |
Companies in this industry contract to perform construction work in a wide variety of trades, including site preparation, concrete, electrical, HVAC, plumbing, and painting. Major companies include Comfort Systems USA, EMCOR, Performance Contracting, and Quanta Services (all based in the US), as well as Bilfinger Berger (Germany) and Chicago Bridge & Iron (the Netherlands).
Demand is driven by new residential and nonresidential construction activity, as well as corporate profits and local government budgets. The profitability of individual companies depends on accurate project bids and efficient operations. Most specialty contractors earn revenues from fixed price contracts, and companies must estimate total costs for projects. If actual material prices or labor costs differ from the estimates and can not be recovered through change orders, profitability could be reduced. Large companies have advantages in being able to offer a variety of services over a geographically diverse market at competitive prices. Small companies can compete effectively by offering niche services or by building relationships with customers in individual markets. The industry is highly competitive, and a single project may attract bids from many contractors.
Electrical power installation and service contracting accounts for 12 percent of industry revenue, HVAC contracting for 9 percent, and plumbing and concrete contracting for 6 percent each. Services provided by specialty contractors include the design, construction, installation, repair, and maintenance of a wide variety of systems and structures.