Engineering News-Record magazine published its annual Top 600 Specialty Contractor “who’s who” industry rankings in October. SMACNA contractors saw their revenues and market share increase.
In 2016, SMACNA members’ earnings comprised 61 percent of ENR magazine’s top 50 mechanical contractors’ $14.9 billion category. In 2015, SMACNA’s mechanical contractors’ share was 57 percent of $14.9 billion.
In 2016, things heated up in the sheet-metal category. SMACNA contractors dominated by capturing 80 percent of the $1.2 billion category. Whereas in 2015, SMACNA members were responsible for only 63 percent of total sheet metal revenues of $692.5 million. The total revenue of the sheet metal category skyrocketed from $692.5 million in 2015 to $1.2 billion in 2016.
Fourteen SMACNA members made it into the top 20 sheet metal ranks in 2016, compared to only 11 in 2015.
The Oct. 24 article also recapped top specialty contractor executives’ opinions on industry conditions and trends.
Some industry trends include:
- The market is strong. The Top 600 revenue exceeded the $100 billion mark for the first time.
- Large specialty contractors are relying on acquisitions of other firms to boost market share.
- Owners are increasingly interested in one-stop shopping for building services work.
- Mechanical firms are adding electrical divisions to their suite of services.
- Profit margins are improving and getting back to reasonable levels.
- Owner demand for a collaborative work atmosphere has required contractors to adapt to a Building Information Modeling (BIM) environment, forcing software developers to meet their demand.