Subcontractors List Mirrors Changing Market

(Click here to see the list of the region’s largest subcontractors. And click here (PDF) to see the chart of biggest gainers.)

At first glance, the Northwest Arkansas Business Journal’s annual list of largest subcontractors appears to be the same as usual with increasing revenues reflecting a growing construction market.

But a closer look reveals that not every company is generating revenue the same way they did a year ago. Some are finding ways to adapt to the changing market.

Subcontractors who put most of their eggs into residential baskets are feeling a pinch financially since the number of houses and subdivisions that are being built has slowed in recent months.

Others, such as Multi-Craft Contractors Inc. of Springdale, have been thriving by taking on more industrial and commercial projects since that market has been taking off in recent months. Multi-Craft’s revenue increased 25 percent from $32 million in 2004 to $40 million in 2005.

Glass companies, such as Arkansas Glass & Mirror Inc. of Fort Smith, have jumped on the bandwagon of a hotel construction boom. That company has increased its revenue by 9 percent, from $4.5 million in 2004 to $4.9 million in 2005.

“We’re going through a hotel building stage and apparently, there’s still not enough hotels in the area because they keep building them,” said Arkansas Glass & Mirror Inc. president Danny Glover. “It reminds me of what we went through in the ’70s when we did Holiday Inn projects all the way from Colorado to Florida.”

Also under the Specialty Subcontractors’ heading, RGC Glass Inc. and Miller Commercial Flooring Inc. both reported a 77 percent increase in revenue from 2004 to 2005.

One of the most glaring figures and facts from this year’s subcontractors list is the increased revenue and new name under the Top Executives’ heading for Wachter Network Services Inc./Wachter Electric of Lowell.

Wachter Electric’s Brian Sloan has hit the ground running after taking over as regional manager for his late father, Steve Sloan. The company reported a 116 percent increase in revenue, tallying $25 million in 2004 and a whopping $54 million in 2005.

Only one company, King Electrical Contractors Inc. of Fayetteville, reported a drop in revenue, slipping from $4.3 million in 2004 to $3.7 million in 2005.

Three companies — All Phase Electric Inc. of Greenwood, Mountain Mechanical Contractors Inc. of Fayetteville and Managed Subcontractors International Inc. of Rogers — reported no change in revenue over the last two years.

Johnson Mechanical Contractors Inc. of Fayetteville, SimplexGrinnell Co. of Springdale and Environmental Protection Associates of Fayetteville elected not to disclose revenues for 2005 after disclosing revenues for last year’s list.