Founded in the late 1940's, the company is an established institution in the Washington DC area and enjoys a long standing relationship and excellent reputation with its major clients. Most of the company's business is in Washington DC, Northern Virginia and Maryland with about 90% of revenue coming from three clients.
New construction in the Washington area has experienced a multi-year boom that shows no sign of decreasing. It is estimated that current existing housing in our area represents only approximately 50% of what will be required by the year 2025. This, supported by job base growth (70,000 new jobs last year), housing construction in particular is extremely active throughout our area. This is where the company is most active dispatching approximately 55 crews per day. If an aggressive new owner was so inclined, in addition to the current construction revenues, there is an immediate and growing demand/opportunity for repair and replacement work on the existing infrastructure in Washington D.C. that could dramatically increase revenues.
While approximately 80% of current sales are from new construction, should this slow, past experience has shown that the utility companies tend to do more maintenance work so the company's sales will be self-correcting.
Financials show income for the company was affected in a positive way by the Internet/telecomm boom that occurred in the late 90's. There was significant increased demand for telecommunications construction services. Although this has since dried up, other construction requirements have greatly accelerated.
While a boom and bust cycle is one of the single biggest negative factors in the construction industry, the company has built a business that is significantly insulated from downturns and is capable of significant growth.
- Fairfax County, the company's home county, is the most affluent county in the USA.
- Loudoun County is the fastest growing county in the USA, measured by increased.