Hansen Mechanical Contractors Swot Analysis

The two strengths of Hansen Mechanical Contractors, Inc. are an educated team and positive workplace. The first strength is that the management and employees have years of specialty experience in the plumbing and mechanical construction area. The management leaders all have college degrees in business and most carry certifications in plumbing and mechanical. Since construction is a field that changes daily with building codes and project management the current employees are required to keep their certifications up to date. The field employees are employed through the union and all have had to pass an apprenticeship in order to stay active in the union. The union has mandatory yearly training that each employee must stay current on as well.

are large overhead and a union company. Hansen Mechanical Contractors, Inc. is a large construction company that consequently has a large overhead budget. This is a weakness for them because if the amount of work they are awarded drops the overhead will still remain the same. For example, if the company sees a drop in sales the overhead costs would still stay the same. The reason is that rent, administrative costs and administrative salaries are still needed whether sales are 10 million or 2 million. The rent would stay the same regardless of sales. The administrative salaries would stay the same as well because you would still need an accounting and sales team to run the 2 million in sales. Since construction is an up and down market Hansen Mechanical Contractors, Inc. must take into account what the local construction economy will look like moving forward to hopefully be able to prevent a loss in sales and lower some overhead areas if

Opportunities

Two opportunities for Hansen Mechanical Contractor’s, Inc. are to work on building relationships with suppliers and offer more services. Hansen Mechanical Contractors, Inc. should work on building strong relationships with their largest suppliers. By doing this that would create the best possible pricing for future orders. Most suppliers will offer a discount if a company agrees to pay invoices within a certain time period. By management working together with the supplier they can come to an agreement on possible savings on orders and then increase their profit on jobs.

Hansen Mechanical Contractors, Inc. could also offer more services. By doing this they are creating more opportunity to increase sales. One example could be to branch out into the residential construction market. Hansen Mechanical Contractors, Inc. currently works in only the commercial and hotel industry. By pursuing jobs in the residential market as well they are increasing their range of expertise and if the time arose that the commercial and hotel industry slowed down they would have other areas to focus getting jobs in.

B4.