Although the market remains somewhat unpredictable, regional outsourcing companies still see expansion in most product types in most of their operating markets. “When there’s an ebb and flow, we lean on our 41-year history of managing market cycles, because there will always be market cycles,” says Andy Snedeker, director of Suntec Concrete. With $920 million in reported revenue by 2024, the company ranks first on this year’s list of top specialty contractors for the new ENR Mountain States & Southwest region.
Snedeker says Phoenix is currently enjoying “the TSMC effect,” referring to Taiwan Semiconductor Manufacturing Co.’s unprecedented investment.
“The company’s manufacturing presence is creating many thousands of jobs while driving the commercial real estate leasing and construction markets with the attraction of supplier companies and growing residential housing needs. Phoenix’s economy has grown significantly over the past decade, but the addition of TSMC gives the market a whole new level of legitimacy,” says Snedeker.
In the Intermountain area, Utah is also becoming a new commercial real estate favorite. “Businesses and industries are increasingly recognizing its valuable combination of advantages, from Utah’s low cost of doing business to its highly strategic geographic position in the region. Significant industrial development has spurred growth in all product types, including office, multifamily and even the hospitality sector,” says Snedeker.
Encore Electric was part of the team of specialty companies that recently completed the expansion of the Glenwood Springs Maintenance Facility in Glenwood Springs, Colorado. The new facility better serves the Roaring Fork Valley as it prepares to provide more reliable, efficient and sustainable transportation.
Photo courtesy of Encore Electric
Bow to current conditions
“As a specialty contractor and product manufacturer, we are seeing steady demand and remain cautiously optimistic heading into the fourth quarter,” says Marc Paolicelli, chief customer officer and senior vice president of Denver-based RK Industries. The company ranks fourth on ENR’s list of specialty companies for the region with $435 million in revenue by 2024.
“The labor shortage is an ongoing issue and like many in the industry, we are focused on finding smart and sustainable ways to navigate it,” he adds.
“We are fortunate to have the expertise in the vertical markets that continue to be strong in the Mountain States region, and we continue to focus on the development of our equipment,” added Andy Gordon, president of Encore Electric. The company ranks sixth on this year’s list, with $348.5 million in regional revenue by 2024.
While there are no guarantees in this business, Gordon says Encore, like many of the other specialty firms on the list, feel confident in the work they’ve received and are approaching the changing economy by deliberately maintaining a diverse client base.
Gordon’s advice to other companies: “Be proactive from preconstruction through construction to help provide solutions to build a better project. Providing early solutions to project challenges is always better than waiting until the challenge is in front of you.”
“It’s important to remember that we’ve seen market changes before,” adds Snedeker. “If we learn from the past and stay nimble, ready to adapt to change, we can stay afloat and continue to build our business.”
Editor’s note: ENR’s regional subcontractor rankings look different this year after the consolidation of several regional magazine editions into five new ones: Mountain States & Southwest, East, Midwest, Texas, and Southeast & West. On the following pages, ENR shares the inaugural list of specialty contractors in the Mountain States and Southwest, with 38 companies ranked by 2024 revenue. There are also breakdown tables focusing on state sector and market data in the seven-state region of Arizona, Colorado, Idaho, New Mexico, Utah and Wyoming.
