The region’s specialty contractors have plenty of work to keep them busy, and many are diversifying their offerings while increasing their technology expertise to keep up with the demand for projects in the Mountain States region, which includes Utah, Idaho, Montana, Colorado, Wyoming and the Dakotas.
At the same time, some companies are waiting for interest rates to drop further before approving new projects. “Specialty contractors are largely in a waiting period as the election and high interest rates prevent many homeowners from starting new projects,” says Jamie Hodges, executive vice president of Industrial Builders/Managers (ICM).
Graph by ENR
Ranked No. 11 on this year’s list of regional specialty companies, ICM grew more than 30% last year with revenue of $85.7 million by 2023. The contractor’s largest project for starters was the $28 million Xcel Comanche auxiliary boiler in Pueblo, Colo.
“We look forward to this [holding pattern] to change in the first quarter of 2025,” says Hodges, “and we’ve already had many owners contact us and ask for quotes, with the understanding that official requests for estimates will come shortly after the Year Nine”.
In the meantime, ICM is working to strengthen its internal processes and training so it can hit the ground running when projects pick up, Hodges says. “We’re also working closely with the unions so they can make their workers aware of the important initiatives we know will increase in the coming year, and that includes the grinders being trained in baggage handling systems.”
Sturgeon Electric partnered with Atkins, Kiewit and WSP USA on the Central 70 project in Colo. DOT $1.3 billion by 2023, Colorado’s largest highway infrastructure project in state history.
Photo courtesy of Sturgeon Electric
With the numbers
The top 15 companies on ENR’s Mountain States Top Specialty Contractors list reported total revenue of $2.96 billion by 2023, up 7.6% from the year-ago period. This represents a slight increase in growth from the previous year, when the top 15 specialty contractors in the region reported a 5.3% increase in revenue. Revenues for the 26 companies on this year’s list follow a slightly different pattern: Average revenue per company decreased slightly, to $124.38 million in 2023, from $127.7 million in 2022. However, the average of the top 10 companies grew to $261.3 million in 2023, up from $248.6 million in 2022, a similar increase to total revenue. And the number of companies reporting revenue also increased, suggesting that the overall average fell due to an increase in reporting by companies with lower revenue.
MTech partnered with Saunders Construction on the $220 million redevelopment of the Steamboat, Colo., ski base area.
Image courtesy of David Patterson
Strategic planning
ICM is also working to incorporate new technology and automated equipment into its operations. For example, a new beam line at the contractor’s Pueblo, Colo., fabrication shop should be up and running by the end of the year, which Hodges says will allow ICM to greatly increase its steelmaking capacity while is preparing for a new section of projects. .
“As we look to 2025, we expect infrastructure to continue to be an important driver for the industry … given the continued infusion of IIJA funding.”
—Jamie Hodges, Executive Vice President, ICM
In response to robust energy initiatives in Colorado, and Denver in particular, the fifth MTech Mechanical company launched a power unit in 2023, says Marco Capitelli, president of MTech.
The contractor’s largest project to begin with was the $14 million Steel House office in Denver’s River North Arts District, the center of Denver’s fastest-growing residential neighborhood. MTech has partnered with GE Johnson and ME Engineers on the 14-story building, which will pursue LEED GOLD and WELL certifications.
Two large electrical contractors, Utah-based Cache Valley and Colorado’s Sturgeon, traded the top spots on the Mountain States list this year, with the former posting more than $597 million in revenue and the latter reaching 531 million dollars.
RK Industries and Encore Electric landed in third and fourth place, respectively.
“As we look towards 2025, we expect infrastructure to continue to be a major driver for the industry, particularly transport and airport projects given the continued infusion of IIJA funding,” says Hodges.
Graph by ENR
