Top Specialty Contractors of the Southwest
Plentiful Work Translates into Big Dollars for Subcontractors

Due to an overwhelming response from subcontractors, we’ve expanded this year’s ranking to include the top 190 specialty contractors in the Southwest. Subs reported a record $5.5 billion in revenue for 2006, more than double the amount five years ago.

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The Top 150 specialty contractors rose to $5.4 billion in combined 2006 revenue, a 21% increase over last year’s top 150.

Smaller and medium-sized companies made the most gains with the top 11 through 150 contractors collectively averaging a 35% increase over the previous year, while revenue of the 10 largest firms taken together actually dropped by 1% over last year.
Arizona subcontractors as a whole enjoyed a 38% gain over their 2005 revenue, reporting a total of $3.2 billion of work in 2006.

New Mexico’s subs total rose 31%, but still only tallied a fraction of Arizona’s total at $402 million in 2006. Nevada’s specialty contractors brought in $1.92 billion in 2006, a modest 3% gain over the previous year.

Norwalk, Conn.-based EMCOR Group took over the top spot, reporting $335.9 million for the region. “EMCOR experienced a good 2006, and is also having a great 2007,” says company president and COO Tony Guzzi, “Arizona and Nevada are very strong for us in the areas of healthcare and water/wastewater; we also have a significant position in Las Vegas and gaming.”

Subcontractors attributed a variety of factors in their continued success.

“Great customers, continued support from our material supply partners along with a highly skilled and motivated workforce has presented us with opportunities beyond our expectations in today’s marketplace,” says Scott Maki, partner with Phoenix-based MKB Construction Inc., a firm specializing in metal stud, drywall and interior finishes.
MKB’s revenue was up over 30% from the previous year, and the firm ranked fifth among all interior finish contractors in the region.

Albuquerque-based mechanical contractor Miller Bonded moved up several spots in their category, and placed fourth among all New Mexico subs.

“The strong working relationships we have with many general contractors in both Arizona and New Mexico, the abundance of projects being constructed and the ability to add quality skilled craftsmen to our existing ranks were the three main contributors to our growth and success for the year,” says Ken Otteni, the firm’s president.
Mechanical contractors jumped up 31% over last year to $918 million, which was the largest category in this year’s ranking.

Subcontractors should continue to find ample work in the coming year. However, finding enough skilled workers will remain a major challenge.

“Training seems to be the key,” Maki says. “Having a safe, trained and skilled workforce provides opportunities as long as there is work available. The companies that are best prepared will flourish.”

To attract future workers, Miller Bonded is participating in a group marketing strategy in New Mexico. “This marketing blitz is a combined effort of the mechanical, electrical and sheet metal unions and contractors to get young people educated about our industry,” Otteni says.

The following rankings are based upon surveys sent to specialty contractors throughout the region. Only those firms who responded with their 2006 revenue were included. Every effort was made to contact each company at least once.

Special thanks to Tom McClure who researched, administered and compiled the data. Please contact him at 602-631-3080 if you wish to be included in next year’s ranking. 

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