Quanta moves forward. In 2015, prevailing market conditions placed challenges in our path, and our financial performance did not keep pace with recent years of record growth. Still, we remained steadfast to our long-term strategies and further solidified our position as the largest, most capable and most adaptable company serving our industry. Propelled by these powerful competitive advantages, we move forward.
Quanta is recognized as the leading integrated solutions provider serving the electric power and oil & gas infrastructure markets. We are focused on our end markets and customers know we have the experience and capabilities to deliver customized solutions on time, on budget and with the utmost levels of quality and safety.
With increasing pressure to replace aging infrastructure, a changing regulatory environment, a shifting power generation mix, flat load growth and a number of other factors, the electric utility industry is ever-changing. More than ever, customers seek cost certainty on their projects. Quanta delivers by leveraging its capabilities to take on more project scope and scale, designing projects on the front end for better constructibility and carrying projects all the way through to final execution.
Oil & Gas
The pipeline construction business is strong with a bright multi-year outlook. We are aligning ourselves with customers who have the resources to move forward on their multi-year capital build programs. Instead of the traditional approach, customers increasingly are interested in forming alliances with Quanta across multiple projects over multiple years to capture efficiencies and best practices. Our industry-leading resources and integrated solutions offerings make Quanta the ideal partner for these agreements.
Quanta companies have served our markets successfully for generations. Our entrepreneurial model frees our field operations leadership to make the right strategic decisions, manage risk, adapt quickly and capitalize on opportunities. Regardless of market cycles, we are confident that we have the best operating model and the best field leadership to excel and solidify our industry-leading position.
Key Business Drivers
Two-thirds of North America’s power grid and pipeline infrastructure is near or beyond the end of its useful life. These systems must be repaired, replaced and upgraded, which is a multi-decade undertaking that will require significant investment and drive large projects.
Government agencies are taking action to address vulnerabilities and ensure safety and reliability in electric and pipeline infrastructure. They’re also adopting regulations to move North America toward a cleaner environment. Recent measures such as FERC Order 1000, various air emissions regulations and the Critical Infrastructure Protection Act should create opportunities for Quanta.
Changing Power Generation Mix
The transition from coal to natural gas-fired and renewable generation helps all aspects of our business. Power grid infrastructure must be reconfigured and new lines built to transmit power from these new generation sources, and a new network of natural gas pipelines must be developed to fuel new power plants.
Development of North America’s shale regions and the Canadian oil sands has become an energy game changer. Most of these hydrocarbons are located in areas without adequate energy infrastructure. Significant pipeline and related infrastructure must be built to move hydrocarbons from production areas to end markets.
FERC Order 1000
This mandate from the Federal Energy Regulatory Commission was designed to facilitate better regional power grid planning, increase competition to lower consumer costs and spur development of transmission infrastructure. The order’s focus is to move toward a more efficient “electric power highway system.” We believe this will drive new transmission project opportunities for Quanta over time.
Many of Quanta’s most visible projects highlight our well-known competencies in large electric transmission and mainline pipe. Yet our integrated solutions portfolio encompasses a diverse service offering. We have significant capabilities serving the distribution markets for both electricity and natural gas, as well as many other important services.
Differentiated Competitive Position
When it comes to performing the full spectrum of activities on large projects and multi-year build programs, Quanta stands alone. Construction is often the largest variable, and therefore the largest risk on capital projects. Our integrated self-perform capabilities mitigate these risks. By applying sophisticated solutions and our superior construction workforce and leadership, we bring efficiency and certainty to every aspect and every stage of the project.
Strategies for Growth
In any market environment, Quanta remains strategically focused on profitable growth. There are three primary elements that protect our industry-leading market position.
|Quanta continually strives to strengthen our core operations through initiatives designed to enhance margins. Maintaining an outstanding safety record, and delivering cost efficiency, schedule certainty and quality assurance to our customers further our pursuit of operational excellence, which is the foundation of profitable growth.|
|Leveraging operational excellence, we organically expand our core in a number of ways. We are able to leverage our core capabilities to win new customers, increase our scope with existing customers and expand our presence geographically.|
|Acquisitions allow us to supplement our organic efforts and expand our core operations. They bring quality organizations with strong entrepreneurial leadership to Quanta, helping us supplement our leadership positions in existing markets, or allowing us to enter new markets. Strategic investments that align us with our customers and allow Quanta to grow backlog are another way we expand our core.|
Quanta employs the largest construction workforce and most experienced and respected field leadership in the industry. Routinely, we are trusted to work on the highest-profile projects out there, because our people have the experience, training and preparation it takes to deliver.
Investing in Our People
We believe Quanta has the best trained workforce in the industry, and we continue to invest in the future. We built a state-of-the-art training facility on 2,100 acres in LaGrange, Texas and worked with industry, organized labor groups and universities to develop a one-of-a-kind training curriculum that provides hands-on instruction in a simulated, controlled environment.
A More Integrated EPC Model
Customers are looking for ways to reduce their risk. We have answered by taking on more scope. We have moved up the value chain, providing more services so our customers have fewer contractors and fewer uncertainties. Quanta has built an integrated solutions offering across the full life cycle of a project, covering a spectrum of self-perform capabilities that sets us apart from others.
An Expanding Footprint
Quanta’s North American base of business is strong, and we continually look for opportunities to expand into new regions across the continent where we can establish a leadership position. We also selectively expand internationally where we see opportunities. For example, we are strategically focused on expanding our Australian operations, and we are gaining traction in Latin America.