Emcor is an electrical and mechanical construction and facilities maintenance company. It operates in two main areas: electrical and mechanical engineering as well as facility construction services. Approximately 50% of Emcor's revenues come from recurring maintenance service contracts and 50% from implementing new electrical and mechanical systems. Emcor has a presence in the United States, United Kingdom, Canada, and has grown through strategic acquisitions to serve a variety of markets.

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

2. Basic Business Description Emcor manages electrical and mechanical construction ventures as well as facilities maintenance projects for corporations. Emcor operates in two main arenas: electrical and mechanical engineering as well as facility construction services. Over the course of the past few year, Emcor has generating an increasing percentage of its revenue from the e&m segment. Approximately 50% of revenues originate from recurring maintenance service contracts and the other 50% from implementing new electrical and mechanical systems. Mkt Cap – 1.59B P/E – 8.54 Beta – 1.82 Headquaters – Norwalk, Connecticut ~28,000 Employees Service 9 markets (encompassing over 65 segments)

3. Price Chart 52 Week Range: $11.17– 36.05 Current Price: $24.12

4. Sales by Geographic Region United States ~$4.8 B United Kingdom ~$0.7 B Canada ~$0.4 B *Illustrates geographic reach and variety of new project types

5. Financial Highlights

6. 2009 Awards Worlds Most Admired Company Fortune Magazine named Emcor the #1 most admired company in the engineering & construction category Best Managed Company in America Forbes magazine named Emcor as the best managed company in the construction industry Fortune 500 Company 9 th consecutive year Business Segments

7. Industry Notes Competition in the electrical/HVAC arena is already high and is on the rise Characterized by many small scale contractors which compete for shares of relatively narrow regional markets Small-scale contractors rely heavily on “word of mouth” referrals for new business in localized areas Larger companies are often particularly well positioned as they can highly benefit from economies of scale and provide a more holistic approach to service delivery The emerging trend of building automation in large-scale facilities has led to an increase in demand for companies that provide a broad range of services

8. Strengths Several strategic acquisitions have allowed Emcor to have a strong presence in sectors that tend to perform reliably during market downturns Has maintained fairly stable growth in operating margins and cash flow from operations over the past 5 years Has built a stable, balanced earnings base through a diverse portfolio of services and markets Has a strong facilities services branch that helps insulate from the cyclicality of the construction industry (grown 7-fold since ’02/accounts for 34% of total operating income) Is politically well positioned to benefit from the massive infrastructure bill that was enacted in February ’09 ($50+ billion estimated federal investment in energy and water infrastructure alone) Since 2003, the accident rate has decreased by 31% while work hours have grown by 25% SWOT

9. Weaknesses The firm faces the danger of becoming too large and beaurocratic to nimbly operate in a industry that requires quick adaptation to capture opportunity Relies heavily on acquisitions to expand business and market reach which, in certain instances, diworsifiy’s the firm SWOT

10. Opportunities Recent capital intensive stimulus and infrastructure legislation will grow demand for electrical, HVAC, and construction companies services Public and private sectors will invest in energy management and efficiency to reduce costs and respond to growing calls for environmentally friendly practices Federal government is requiring most new federal buildings to be LEED certified and will have many existing buildings retrofitted Future investment in more sophisticated facilities for higher education Push for “smart transportation systems” Continued growth and expansion in the healthcare market as demographics tilt toward older populations SWOT

11. Construction focused firms are migrating towards providing the same services the Emcor provides Advancements in technology are allowing for more decentralized power options – installers of such systems provide their own servicing work A highly fragmented industry leads to a large amount of similarly competing business models Threats