What Gives?

[bennie]

I have observed many times, over the past 50 years, where a nationwide electrical firm will buy out small companies in many cities.

This was done by the Newberry Electric Corp, JPL Corporation, Dyna-lectric, now the Encompass Corp.

All have been low bidder on most of the large projects.

All have failed and filed bankruptcy.

Encompass paid 100 million for one company and sold it back for 7 million.

Are these corporations laundering money?

 

[bphgravity]

Re: What Gives?

Hello Bennie,

I worked for a company called Tri-City Electrical Contractors here in Florida at the time when they were bought out (overtaken) by Encompass.

Tri-City was the state of Florida's largest contractor, but was family owned by the original man that stated the company in the 1950's.

Encompass promised not to change anything and ensured normal operations would continue as always. Yeah right.

By the time I received the 5th corporate memo on new company policy and new management structure, I knew it was time to go. They went from a very powerful company that knew how to take care of its employees and customers to one of the largest companies in the world with no concern of how it got there.

I guess this is just the way of the world now. When is the last itme you actually shoped in a small hometown retail store or hardware. With all the Walmarts and Home Depots, who dares to go into business?

I am just waiting for 10 years down the road when the federal government makes Walmart break up into smaller companies like it did to AT&T several years ago.

It sure is a crazy cycle!!!

[ May 16, 2003, 07:12 AM: Message edited by: bphgravity ]

 

[cm]

Re: What Gives?

ITS CALLED ROLLUP,I know of it in lots of business, elect& mech contrs,funeral homes & cemeteries one lighting mfr I can think of and others.If somone offers you twice what your business is worth grab it and buy it back later

[ May 16, 2003, 08:58 AM: Message edited by: cm ]

 

[bennie]

Re: What Gives?

I was working for a very good contractor, in California, when Newberry Electric went belly up.

The bonding companies paid to complete 27 million in projects. My boss took on one project that was over half completed. He quoted, and was awarded the same price as the original bid. All the hands remained on the job.
He bought a new Lamborini with the profit.

 

[templdl]

Re: What Gives?

It is the norm for companies to be run on short term goals. Inexperienced help is hired to fill a need for warm bodies a much less cost than the higher cost of qualified people with experienced, Young college grads are less likely to stick around for the long hall if they are not moved up quickly through the corporation while obtaining little or no experience. If not they will quit and go somewhere where they can.
Financial figures are important. And, as such management does what ever it can do to meet the annual financial goals which makes them look good. They are now able to move up the ladder because of their success. It appears to be a rare thing where an individual is directly responsible for a long term goal of 3-5 years or more.
Old-timers with experience are let go do to the cost of their salary, vacation, health insurance, etc., for the less expensive younger college grads.
And, the older seasoned design engineers who used to be a braintrust to get answers for complex product and application problems find it in their best interest to retire or are forced out because of their cost.
It used to be that an electrical sales person used to know the product that they were sell inside and out and how it was applied and more. It is becoming more and more common for the sales people to be simple peddlers who haven't a clue about the products which they are selling and don't stay in that position long enough to learn.
Yes, it is norm nowadays to make a big splash and get promoted or move while leaving things to implode behind them.
All in all I don't think it provides a healthy business invironment.

 

[bphgravity]

Re: What Gives?

Business isnt the way it used to be. At one time, a company could invest in a strategy for 5 years or more. Today, technology changes and the rapid change in market demand doesnt allow for it. Most companies are finding that being just an electrical installer isnt enough anymore. Companies have to now provide networking, power quality, and other specialized work in order to keep up with the demand and the competition.

Electricians have a tendency to get stuck in their ways and not evolve with the rest of the industry. Its the up-and-comers who have the vision of tomorrow and provide the skills and knowledge of these new technologies.

Apprenticeship programs are at all time lows, and college entrance is at all time highs. Back in the day, becomming and electrician or some other trade person was an honorable job that one could be proud of. Today, high school graduates want to sit behind a computer and design video games and make funny graphics.

Nobody wants to get their hands dirty or climb a latter anymore. And you cant expect someone to actually sweat!! The face of the electrician is rapidly changing, and it is very ugly!!! And contractors dont have much of an option.