The region’s specialty contractors have plenty of work to keep busy, and many are diversifying their offerings while increasing their technological expertise to keep up with project demand in the Mountain States region, which includes Utah, Idaho, Montana, Colorado, Wyoming and the Dakotas.

At the same time, some businesses are waiting for interest rates to dip further before approving new projects. “Specialty contractors are largely in a wait-and-see period as the election and high interest rates are holding many owners back from starting new projects,” says Jamie Hodges, executive vice president, Industrial Constructors/Managers (ICM).

Chart by ENR

Ranked 11th on this year’s list of regional specialty firms, ICM grew more than 30% last year with a reported $85.7 million in 2023 revenue. The contractor’s largest project to break ground was the $28-million Xcel Comanche Auxiliary Boiler in Pueblo, Colo.

“We expect this [holding pattern] to change in Q1/Q2 of 2025,” says Hodges, “and we’ve already had many owners reach out and ask us for budgets, with the understanding that official requests for estimates will come soon after the New Year.”

In the meantime, ICM is working on strengthening its internal processes and trainings to be able to hit the ground running when projects pick back up, Hodges says. “We’re also working closely with the unions so that they can get their workers up to speed on major initiatives that we know will ramp up in the coming year, and this includes millwrights who are getting trained on baggage handling systems.”

Sturgeon Electric partnered with Atkins, Kiewit and WSP USA on the $1.3-billion Colo. DOT’s Central 70 project in 2023, Colorado’s largest highway infrastructure project in state history.
Photo courtesy Sturgeon Electric

By the Numbers

The top 15 firms on the ENR Mountain States Top Specialty Contractors list reported total revenue of $2.96 billion for 2023, up 7.6% from the year-ago period. That represents a slight uptick in growth from the previous year when the region’s top 15 specialty contractors recorded a 5.3% increase in revenue. Revenue for all 26 firms on this year’s list follows a slightly different pattern: The average revenue per firm decreased slightly, to $124.38 million in 2023 from $127.7 million in 2022. However, the average for the top 10 firms grew to $261.3 million in 2023, up from $248.6 million in 2022, a similar increase to that of total revenue. And the number of firms reporting revenue also increased, suggesting that the overall average was lowered due to an increase in reporting by lower revenue firms.

MTech partnered with Saunders Construction on the $220-million Steamboat, Colo., ski base area redevelopment.
Image courtesy David Patterson

Strategic Planning

ICM is also working to incorporate new technologies and automated equipment into its operations. For example, a new beam line at the contractor’s Pueblo, Colo., fabrication shop should go live at the end of the year, and Hodges says this will enable ICM to greatly increase its steel fabrication capacity as it prepares for a new tranche of projects.

In response to Colorado’s robust energy initiatives, and Denver’s in particular, fifth-ranked firm MTech Mechanical launched an energy unit in 2023, says Marco Capitelli, MTech’s president.

The contractor’s largest project to break ground was the $14-million Steel House Office in Denver’s River North Arts District, hub of the fastest-growing residential neighborhood in Denver. MTech is partnering with GE Johnson and ME Engineers on the 14-story building, which will pursue LEED GOLD and WELL Certifications.

Two large electrical contractors—Utah-based Cache Valley and Colorado’s Sturgeon—swapped first-place spots on the Mountain States list this year, with the former reporting more than $597 million in revenue and the latter coming in at $531 million.

RK Industries and Encore Electric landed in third and fourth place, respectively.

“As we look to 2025, we expect infrastructure to continue to be a major driver for the industry, particularly transportation and airport projects given the continued infusion of IIJA funding,” Hodges says.

Chart by ENR