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INTRODUCTION: CHANGING…TO STAY THE SAME
SUSTAINING OUR FUTURE
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P1 GROUP MAKES STRATEGIC CHANGES…SO SOME THINGS CAN STAY THE SAME
MMore than one hundred years of
creating a people-first culture, profitable growth, and a “safety first, quality always” workplace is not something P1 leadership is willing to relinquish.
According to CEO Smitty Belcher, there are sharks in the water these days, and we’re not immune to attack. “Every industry consolidates at some point,” Smitty said. “Watching the market, we saw a large company come into our marketplace recently, offering several large universities around $1 billion for their central utility plants. In return, the university signs a 50-year contract for conditioned air yearround with that company,” Smitty said. “They are also a consolidator. That same entity is buying companies, getting rid of the existing leadership, and running them their way.”
Smitty says another company is investing trillions in companies’ stock, on the premise those companies will divest themselves of coal over time. If coal is diminished, the price of electricity goes up, driving everyone to reduce energy costs and carbon footprints. “HVAC companies like P1 are the drivers. But P1 is in between - not small, but not large, making us vulnerable,” Smitty explained. “For us to play in the market, we either sell to a consolidator or find someone who can make a financial investment in us so we’re the ones going out and buying the companies, increasing our size and footprint across the U.S. and beyond.” That someone became Dunes Point Capital, LP. With Dunes, P1 Service, LLC merged with Rieck Services, LLC and Vulcan Heating and Air Conditioning to form Best in Class Technology Services (“BCTS”). BCTS is a diversified HVAC services platform, created to facilitate our approach going forward. “People want to work for a company that offers growth and embraces technology” Smitty said. “At the start of the pandemic, we joined forces with Vulcan and Rieck to develop a “Healthy Buildings” initiative. That synergy helped us all survive. Now just imagine that expanding as we acquire service-related companies across the U.S.” P1 Construction will see the benefits of this, too. Smitty says acquiring smaller service-focused companies increases our construction opportunities, since many of them want to play on fields they aren’t equipped for. P1 brings the capabilities they’re missing. “A lot of these companies have strong relationships in their communities and cities, but they couldn’t do that hospital or design-build project,” Smitty said. “With P1, they could.” COO Bruce Belcher says P1 is always keeping an eye to the future. “We are always looking at the “next thing”,” Bruce said. So, what were the options?
“Sustaining a “status quo” has never been an option due to our profitable growth pattern,” Bruce said. Neither is selling out. “We want to continue doing what we’re doing and make sure P1 continues with a true family atmosphere and people-first culture,” Bruce said. “The option we landed on was finding someone who can help us expand without compromising who we are – someone who has bigger dollars to invest in the organization, insulating us from those companies who would buy or consolidate, while allowing us to exponentially grow and provide opportunities for our associates.” “If we sit down to play poker thinking the ante is $1,000 and someone else puts down $1,000,000, we’re out of the game,” Smitty said. “And we can’t lose critical customers because we are out of the game financially – especially since we have the capability to continue serving them.” “We are a relationship-based business, and relationships are priceless,” Bruce added.
Bruce notes the move will give us another sales force in parts of the country we may not yet be doing business, connecting us with those existing relationships. “Whether it’s construction or performance solutions, electrical or FMO, we can get in front of these service companies’ customers and show them what we can do,” Bruce said. Sometimes change is inevitable…so some things can stay the same. “We have historically always changed, and we will change again and again in the future. You have to,” Smitty said. “While P1 has always been open to change, one thing has not changed.” “Our investment in people remains a priority. We have built a people-first culture and we won’t stop now,” Bruce said. “If you have people with passion talent, the rest will come.” In fact, it was P1’s unusual culture that impressed investor Dunes Capital. That, and our outstanding accounting and financial reporting. “Our innovative approach to the market, and financial reporting under the talent of CFO Gloria Keating, is second to none,” Smitty said.
WHAT’S NEXT?
“There will be growth for those who seek it, but it’s also business as usual,” Bruce said. “There is no new set of rules, even though we will now operate with a partner. They liked what they saw, and want us to continue doing what we’re doing.” P1 is looking forward to a bright future, with no shortage of opportunities along the way.
