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HVAC and Plumbing Contractors Industry Profile Excerpt
| SIC Codes: 1711 NAICS Codes: 23822 Page Length: 10-12 Last Quarterly Update: 4/28/2008 View Sample Industry Profile |
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The annual revenues of the utility contractor industry in the US are more than $75 billion. This highly fragmented industry includes 40,000 mostly privately held companies that operate from a single location, and have annual sales under $5 million each. Companies that work mainly in the residential market are usually small, while large companies, including EMCOR Group and Comfort Systems USA, work mainly in the commercial field.
COMPETITIVE LANDSCAPE
Demand for services depends partly on new residential and commercial construction, but demand for maintenance and repair work is substantial. Larger companies may have a competitive advantage winning large projects that require design work and installation, and can provide services to corporations in several markets. Large companies operate through semi-autonomous local units. Profitability depends on the volume of work a company can acquire, since most costs are fixed.
PRODUCTS, OPERATIONS & TECHNOLOGY
HVAC contractors install and service furnaces; air conditioning (AC) units; fans; and the associated ductwork and control units in residential and commercial buildings. While HVAC accounts for the bulk of industry revenues, many commercial HVAC contractors also have sheet metal operations to build custom HVAC ductwork. Plumbing contractors install bathroom and kitchen fixtures and the associated pipes in residential or commercial buildings, and may also install gas appliances and pipework.
Industry revenue is almost evenly split between commercial and residential segments; companies usually participate in only one, as the work differs fundamentally. Within both segments, revenues ...
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