Integrated Electrical Services, Inc. - Electrical Contractors - Category Directory

1800 WEST LOOP SOUTH
SUITE 500
HOUSTON, TEXAS 77027
(713) 860-1500
www.ies-co.com

Sales

$1.4 billion

Business Description
We are the largest provider of electrical contracting services in the
United States according to EC&M Magazine. We provide a broad range of services
including designing, building, maintaining and servicing electrical, data
communications and utilities systems for commercial, industrial and residential
customers.

Our electrical contracting services include design of the electrical
distribution systems within a building or complex, procurement and installation
of wiring and connection to power sources, end-use equipment and fixtures as
well as long-term contract maintenance. We service commercial, industrial, and
residential markets and have a diverse customer base including: general
contractors; property managers and developers; corporations; government agencies
and municipalities; and homeowners. We provide services for a variety of
projects including: high-rise residential and office buildings, power plants,
manufacturing facilities, municipal infrastructure and health care facilities
and residential developments. We also offer low voltage contracting services as
a complement to our electrical contracting business. Our low voltage services
include design and installation of external cables for corporations,
universities, data centers and switching stations for data communications
companies as well as the installation of fire and security alarm systems. Our
utility services consist of overhead and underground installation and
maintenance of electrical and other utilities transmission and distribution
networks, installation and splicing of high-voltage transmission and
distribution lines, substation construction and substation and right-of-way
maintenance. Our maintenance services generally provide recurring revenues that
are typically less affected by levels of construction activity. We focus on
projects that require special expertise, such as design-and-build projects that
utilize the capabilities of our in-house engineers or projects that require
specific market expertise such as hospitals or power generation facilities, as
well as service, maintenance and certain renovation and upgrade work, which
tends to either be recurring, have lower sensitivity to economic cycles, or
both.

Since 1997, we have developed a national footprint of approximately 140
locations currently serving the continental 48 states through the acquisition
and internal growth of established companies operating in our core business
areas. From 1997 to 2003, revenues for our businesses increased at a compounded
annual growth rate of approximately 29%. Included in that growth was
approximately five percent organic or "same store sales" growth. This includes a
decline in our revenue base during 2002 and 2003 of approximately seven percent
due to market conditions and strategic divestitures. In 2003, we continued to
focus internally to integrate our information systems and established a
regionally based management structure to enhance operating controls at all
levels of our organization, as well as integrating a consolidated procurement
program and structure to manage customers and vendors on a national basis.

INDUSTRY OVERVIEW

Using the most recently available data from F. W. Dodge, we estimate the
electrical contracting industry will generate annual revenues in excess of $80
billion in 2003. Data from EC&M Magazine indicates that the electrical
contracting industry is highly fragmented, with more than 70,000 companies, most
of which are small, owner-operated businesses. This data also indicates that
there are only 12 U.S. electrical contractors with revenues in excess of $200
million. F. W. Dodge data indicates total construction industry revenues have
grown at an average compound rate of approximately five percent from 1997
through 2003. This includes a decline in the market from 2001 to 2003 of
approximately one percent, where commercial and industrial construction spending
was down due to soft market conditions, offset by a rise in residential
construction.

During the last decade, electrical contractors have experienced a growing
demand for their services due to more stringent electrical codes, increased use
of electrical power, increased drive toward outsourcing, increased demand for
bandwidth, demand for bundled services, and construction of smart houses with
integrated computer,
temperature control and safety systems. This market, while up over the past
several years, has been depressed during the last two years due to decreased
overall construction spending.