Increased Enterprise Value
The greatest reward from building a professionally-managed service & maintenance business comes from the increased enterprise value that it creates in your company. All of the major features of a well-run service & maintenance operation—including its predictable profitability, risk profile, cash flow, and recurring revenues from an ever-growing customer base—add valuation to a contracting company in a manner that typical construction activity cannot match.
Protection Against Downturns
A well-managed service & maintenance organization within an electrical contracting company provides revenues and profits that will offset a downturn in new construction activity. An electrical contractor who has made it a priority to maintain a healthy balance of revenues—in service & maintenance versus new construction—will be able to ride out a general economic slump or a drop-off in major customers’ capital spending.
Pull-Through Work Opportunities
From the special relationships with customers that an electrical contractor can develop through ongoing service & maintenance engagement, opportunities for “pull-through” work will very often arise. Benefitting the customer and the contractor, these opportunities to bypass the time consuming requirements of soliciting bids versus negotiating a contract are made possible via the trust factor developed through ongoing relationships.