...including the use of building information modeling and working with designers, general contractors and suppliers on how to squeeze waste out of the process.

Many firms have learned lessons from the past that they are now applying to the current downturn. For example, the sudden spike in steel prices seven years ago hit The Williams Group hard, and the firm struggled for several years before coming back to financial health. “We have consolidated our fabrication work and have strategically upgraded our equipment to help,” says Marianne Pastor, vice president. “We have been very methodical in what we bid on and how we deal with suppliers.” The company is sticking to what it does best, she says. “Now it is critical to shepherd your resources and not try to be all things to all people.”

For many specialty contractors, decisions made years ago are paying off now. “We [prepared] ourselves … for bad times six to seven years ago by diversifying,” says Walker. By providing a broad variety of product lines and expanding geographically, Nicholson has been able to do well in a down market, according to Walker. “I pity firms with just one specialty in a limited geographic market,” he says.

Limbach is improving efficiency by using prefabrication and off-site system assembly. “We can now complete up to 40-ft mechanical sections and ship them to the site on tractor-trailers to hang on site,” says Bacon. He says this process is not only more efficient but safer.

LVI is another firm that is making a few changes to improve efficiency. “We have been asked by clients to take on more responsibilities,” says Fried. In the past, for example, LVI would sub out many tasks. “We are now doing more self-perform. It reassures the client on scheduling and process, and it avoids factoring in double margins into bids,” he says.

LVI is one of the many firms making moves to expand into other markets. To this end, on Sept. 27, the company appointed as president and CEO Scott State, who is the former CEO of MACTEC, an Alpharetta, Ga.-based engineering firm. “We are moving into the power, industrial and hydrocarbon markets, and Scott’s experience at MACTEC in those markets will help us do that,” says Fried, LVI’s chairman.

Fried says LVI is targeting the Dept. of Energy’s decommissioning program, in which State has experience. Finally, LVI has its eye on the international market and now is expanding into the U.K. and the Middle East.

Green Energy

Green building continues to be strong, but the emphasis is shifting toward energy efficiency. “We are expanding our work in green and photovoltaic roofing,” says Nugent of Nations Roof. Using the right design and installation can turn a roof from an expense to a profit center, according to Nugent.

The data-center market is also active. As data centers require a lot of energy to operate, power-usage effectiveness (PUE)—the number of watts of power it takes to supply one watt of power to the servers—is the key to measuring energy efficiency. “Energy is one of the biggest overhead items, so PUE is one of the most critical concerns for the owner,” says Boncher of Cupertino Electric. He says innovative design can reduce the PUE significantly. Cupertino recently completed work on a data-center project that has a very efficient 1.08 PUE, compared with the industry average of 1.92.

Energy retrofits is another area of opportunity. The National Electrical Contractors Association, Bethesda, Md., is working with its members to penetrate this sector. “This is a big market, and we are offering training programs in how to provide energy-efficiency services,” says John Grau, NECA’s CEO.

But Grau says that many electrical contractors are used to bidding through general contractors and do not know how to effectively market directly to owners. NECA also is offering a program for members on how to sell to potential clients, Grau says.

Many firms are taking advantage of this opportunity. “We are hiring staff with experience marketing directly to the C-suite level—the CEOs and CFOs,” says Bacon. He says the firm is concentrating on the hospital market and smaller colleges. “We call the group Limbach Energy Services Division.”

Energy retrofits that are slow to make progress are in the building’s skin. “The building envelope is one area where a lot of energy can be saved, but I haven’t seen any surge in interest,” says Mic Patterson, director of strategic development for curtain-wall giant Enclos Corp. He says that, because of the cost, facade retrofits are among the last to be considered. “Mostly, we see low-E films being applied.”

Part of the impact of the recession is that prices of materials and equipment have fallen or stabilized. “Steel prices have been steady,” says Pastor of The Williams Group. She has heard that steel imported from Canadian producers has brought down prices for some projects that do not contain local-content requirements, such as on federal projects.

The recession also has had an effect on equipment prices and availability. “Two or three years ago, you couldn’t rent a hydraulic rig. Now, everyone has anything you need,” says Walker. “There is a lot of heavy-iron, top-flight stuff available now,” says Taylor of the National Demolition Association; this surplus has helped NDA members make major equipment purchases and upgrades.

However, Taylor says the recession has not stopped some of the major equipment companies from marketing new equipment. “We hear [Peoria, Ill.-based] Caterpillar is introducing a new 30/70/100 line of demolition-friendly excavators,” he says. Taylor says German-based equipment manufacturer Liebherr will be marketing a new series of attachments for the demolition market this year.

Research and Development

Many subs are not standing still in the slow market, and a few are investing in new processes and practices. Enclos Corp. is one firm that is putting a lot of emphasis on research and development. “We have created an advanced technology studio to research everything from thermal to...