The American Recovery and Reinvestment Act provides $819 billion total to stimulate the economy, with $637 billion in spending and $182 billion in tax cuts. It aims to revive renewable energy, undertake the largest weatherization program in US history, and increase funding for roads, bridges, and transit. Various government agencies will distribute funds through grants and contracts to states, schools, hospitals, and contractors. The bulk of spending will occur from 2009-2011, peaking at an estimated $236.4 billion. Emcor receives most of its government contracts from the Navy, Public Buildings Service, and other agencies. It provides facilities operations support services and equipment maintenance. While Emcor has not yet received Recovery Act funds, it is

1. Emcor
(EME)
Industrials Sector
August 2nd
, 2009
Kevin Abels

2. American Recovery and Reinvestment Act - Economic Stimulus Package
•Total Cost - $819 Billion
•$637 Billion in spending
•$182 Billion in tax cuts
*As estimated by the CBO

3. • Goal of reviving the renewable energy industry and providing the capital
over the next 3 years to eventually double domestic renewable energy
capacity
• Undertake the largest weatherization program in history by modernizing 75
percent of federal business space and more than one million homes
• Enact the largest increase in funding of our nations roads, bridges, and
mass transit systems since the creation of the national highway system in
the 1950’s
Economic Stimulus Package - Goals

4. • The different agencies (Departments of Education, Health and Human
Services, and Energy) decide who will receive award grants and contracts.
Sometimes the money will go to a state government; other times, the funds
will go directly to a school, hospital, contractor, or other organization.
How Does the Recovery Act Work?

5. Timeline
• The house bill will pour approximately $525 Billion (64%) into the economy
within 19 months through spending and tax breaks
• Approximately $107.1 Billion is estimated to be spent this year
• The peak year is estimated to be between 2010-2011 with estimated spending
to reach as high as $236.4 Billion

9. Emcor/Government Contracts
NAVY, Department of the $16,994,470
Public Buildings Service $11,302,524
Office of Asst. Sec. for Health except
national centers (disused code)
$3,710,133
Smithsonian Institution, except units
under separate Board of Trustees
$3,697,046
STATE, Department of $2,155,409
Top 5 Contracting Agencies Purchasing from Contractor(s)
Top 5 Contracting Agencies Purchasing from Emcor

10. Facilities Operations Support Services $21,308,609
Maintenance, Repair or Alteration of Real
Property -- Office Buildings
$4,107,346
Food Items For Resale $3,697,046
Maintenance, Repair and Rebuilding of
Equipment -- Plumbing, Heating, and
Waste Disposal Equipment
$3,196,708
Maintenance, Repair and Rebuilding of
Equipment -- Refrigeration, Air
Conditioning, and Air Circulating
Equipment
$3,059,437
Emcor/Government Contracts
Top 5 Products or Services Sold
Top 5 Products/Services Sold

11. Emcor/Government Contracts
2000 $20,407,272
2001 $38,438,117
2002 $89,129,207
2003 $62,995,907
2004 $34,668,865
2005 $50,594,484
2006 $43,613,469
2007 $55,336,640
2008 $52,433,602
2009 $42,533,977
Trend

12. How Does Emcor Benefit?
Business Segments
•The Government has detailed to spend approximately $6 Billion to improve
energy efficiency and energy conservation of federal buildings – Emcor is the
second largest facilities service provider in the Washington DC area
•A total of approximately $32 Billion is allocated to transform the nations
energy transmission , distribution, and production by allowing for a smarter and
better grid and focusing investment in renewable technology
•The amount of capital that has already been deployed in the energy and
infrastructure fields is minimal relative to the amount allocated. An increase in
capital spending and opportunity is yet to come. Emcor has yet to receive any
Recovery Act money, but is touted to be one of the biggest beneficiaries.