News

The Northeast construction market has slowed in 2024, as compared to the past 5 years. With some exceptions, new developer starts are on hold as large tenant activity / movement is lacking. Other macro factors are impacting commercial construction starts as well – such as high vacancy rates, an upcoming Presidential election, and rising construction costs to name a few. Conversely, the Medical and University / Academic sectors continue to invest in their facilities and VC capital appears to be coming off the sidelines for smaller life science investments. We’re cautiously optimistic that the commercial construction market is gaining some traction again. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

Long lead times for large switchgear packages and generators continue to challenge the construction industry in the Greater Boston area and beyond. Extended lead times for critical electrical equipment have been ongoing since the pandemic.

The Northeast construction market has slowed in the past year. With some exceptions, new developer starts are virtually on hold as large tenant activity / movement is lacking. Other macro factors are impacting commercial construction starts as well – increased vacancy rates, interest rates, and rising construction costs to name a few. On a positive note, we’re seeing the Medical and University / Academic sectors continue to invest in their facilities and infrastructure. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

The construction market in the Northeast has softened in the past 6 months. Although many contractors have healthy backlogs, new commercial construction starts have slowed and backlogs are turning into earned revenue without many large new builds taking their place. Macroeconomic factors such as interest rates, inflation, record vacancy rates (23.7% nationally!) in urban areas (i.e. Boston/Cambridge), and lack of tenant movement have led to many market sectors being stagnant for construction.. This update is a snapshot of today and we implore you to reach out with questions should you have any. 

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

Large contractors in the Northeast and throughout the US have relatively healthy backlogs extending throughout 2024 and into 2025. Macroeconomic factors like interest rates, inflation, record vacancy rates in urban areas (i.e., Boston / Cambridge), and lack of large tenant movement have led to many market sectors being stagnant for construction. Without signed lease agreements, developers are still not moving forward with large scale buildings that are shovel ready. Academic and healthcare market sectors continue to be strong in the Northeast and data center activity is very strong throughout many areas of the country. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

Contractors in the Northeast and throughout the US still have solid backlogs extending throughout 2023 and 2024. Interest rates hikes, pricing volatility, employees not working in their physical offices, and other macro stressors have dampened many market sectors. Developers are cancelling or pausing some permitted projects for large buildings / facilities on spec and the tenant interior market is slow. Academic, healthcare, and the large-scale residential markets continue to be strong. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

The vulnerabilities of the global supply chain have caused major disturbances in pricing and lead time for the construction industry. Everyone we speak with on this topic has an example of a recent project where materials didn’t ship on time, releases weren’t timely, pricing increased, or the quoted lead time was so long that schedules had to be extended. These historically long lead times have mostly stabilized, while pricing for electrical components continue to increase. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

Recently, Gaston Electrical returned to the Mattahunt Elementary in Boston for a STEM day with AGC of MA and Industry Partners. The day included a reading session with Author Courtney Kelly’s book “Celeste Saves the City” and a LEGO build exercise. Students learned about the importance of teamwork, collaboration, and communication. A great time was had by all, and we look forward to the next visit!
 
Link to full Boston Real Estate Times article here: bit.ly/GastonMattahunt

Post COVID, the global supply chain vulnerabilities were exposed and this has caused major disturbances in pricing and lead times for the construction industry. Since our last edition of The Pulse in November 2022, historically long lead times have (mostly) stabilized, while pricing for electrical materials are still increasing. Our goal with The Pulse is to share current market conditions with our customers and partners. This update is a snapshot of today and we implore you to reach out with questions should you have any. 

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

Introducing “The Pulse” industry trends and forecast report. During the second half of 2020, the pandemic exposed the vulnerabilities of the global supply chain. Labor shortages and decreased availability of materials needed in all phases of construction (coupled with strong demand) has impacted pricing and supply. Thus, the commercial construction industry is facing extraordinary supply chain and pricing unpredictability. Our goal with The Pulse is to share current market conditions with our customers and partners. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

Acquisition Strengthens and Broadens Offerings in the Greater Boston Area

August 09, 2022

NORWALK, Conn.–(BUSINESS WIRE)–EMCOR Group, Inc. (NYSE: EME) today announced that it has acquired Gaston Electrical Co., LLC (“Gaston,” formerly Gaston Electric Co., Inc.) a leading full service electrical construction contractor headquartered in Norwood, MA. Terms of the transaction were not disclosed.

Founded in 1934, Gaston is a leading full service electrical construction and low voltage contractor in the Greater Boston area. Gaston designs, installs, constructs, and maintains the electrical and low voltage systems in a wide variety of projects, including hospitals, laboratories, and life sciences facilities as well as data centers, universities, sports arenas, large-scale residential, and commercial office buildings. With 2022 estimated revenues of approximately $140 million and remaining unsatisfied performance obligations of approximately $120 million, Gaston will further strengthen EMCOR’s specialty construction services operations in the Greater Boston area.

Dan Fitzgibbons, President and CEO of EMCOR’s Electrical Construction Services Segment commented, “We are pleased to expand our footprint in the Northeast with the addition of the Gaston team. This group brings important capability and expertise in servicing many of EMCOR’s core end markets, including life sciences facilities and data centers. With one of the most experienced executive and field management teams in the electrical construction industry, Gaston will further broaden and enhance the service offerings EMCOR provides to its customers in the Greater Boston area.”

“We are delighted to join EMCOR, a company that has the same culture and commitment to excellence that we do.

Bill Weber, CEO of Gaston

Mike Weber, President of Gaston, noted, “EMCOR’s core values of safety, integrity, transparency, trust, mutual respect, discipline, and teamwork are lived by the Gaston team every day. We are excited about our future prospects as a part of EMCOR.”

EMCOR Group, Inc. is a Fortune 500 leader in mechanical and electrical construction services, industrial and energy infrastructure and building services. This press release and other press releases may be viewed at the Company’s website at www.emcorgroup.com. EMCOR routinely posts information that may be important to investors in the “Investor Relations” section of our website at www.emcorgroup.com. Investors and potential investors are encouraged to consult the EMCOR website regularly for important information about EMCOR.

Forward Looking Statements:

This release contains certain forward-looking statements. Any such comments speak only as of August 9, 2022 and EMCOR assumes no obligation to update any such forward-looking statements, unless required by law. These forward-looking statements may include statements regarding anticipated future operating and financial performance, including financial guidance and projections underlying that guidance; the nature and impact of our remaining performance obligations; our ability to pursue and successfully integrate acquisitions; our ability to return capital to shareholders; market opportunities; market growth prospects; customer trends; and our ability to maintain a strong safety record. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated (whether expressly or implied) by the forward-looking statements. Accordingly, these statements do not guarantee future performance or events. Applicable risks and uncertainties include, but are not limited to, adverse effects of general economic conditions; changes in interest rates; domestic and international political developments; changes in the specific markets for EMCOR’s services; adverse business conditions, including labor market tightness, productivity challenges, the nature and extent of supply chain disruptions impacting availability and pricing of materials, and inflationary trends more generally, including fluctuations in energy costs; the availability of adequate levels of surety bonding; increased competition; unfavorable developments in the mix of our business; and the continuing impact of the COVID-19 pandemic, including the nature, extent, and impact of future variant surges, as well as other health emergencies, and government orders and mandates related thereto, on our revenue and operations. Certain of the risk factors associated with EMCOR’s business are also discussed in Part I, Item 1A “Risk Factors,” of the Company’s 2021 Form 10-K, and in other reports filed from time to time with the Securities and Exchange Commission and available at www.sec.gov and www.emcorgroup.com. Such risk factors should be taken into account in evaluating any forward-looking statements.

Contacts

EMCOR Group, Inc. 
R. Kevin Matz
Executive Vice President
Shared Services
(203) 849-7938

FTI Consulting, Inc.
Investors: Blake Mueller
(718) 578-3706