Garrett Electric - Comprehensive Analysis Report

Summary

Garrett Electric, established in 1978 and based in Richland, Washington, is a prominent commercial and industrial electrical contractor serving the Pacific Northwest. Operating as a division of Olsson Industrial Electric and a subsidiary of NAES Corporation, the company is committed to executing projects with the highest quality, while prioritizing safety, efficiency, and cost-effectiveness, encapsulated by its mission: "Safety first—on schedule—under budget." Garrett Electric is highly regarded for its integrity, teamwork, and quality craftsmanship, distinguishing itself through an unwavering commitment to customer satisfaction and professional project execution.

1. Strategic Focus & Objectives

Core Objectives

Garrett Electric's main business objectives revolve around delivering professional execution, minimizing project costs, and upholding stringent safety standards. The company aims to complete all projects on schedule and under budget, ensuring the highest quality of workmanship.

Specialization Areas

The company specializes in a diverse range of industries, including commercial, medical, industrial, educational, and governmental sectors. Its unique value propositions include comprehensive electrical construction, remodels, maintenance, and design-build services through OS Engineering. They also offer expertise in low-voltage systems design and integration, fire alarm system design, installation, maintenance, and testing, security systems, access control, and emergency power systems evaluation and installation.

Target Markets

Garrett Electric primarily targets commercial and industrial clients across the Pacific Northwest region, spanning from northeastern Oregon to the U.S.-Canadian border. Their market positioning strategy emphasizes quality, integrity, and customer satisfaction irrespective of project complexity or size.

2. Financial Overview

Funding History

Garrett Electric was acquired by Olsson Industrial Electric, a part of the NAES Corporation family of companies, in December 2018. This acquisition marked a significant integration into a larger corporate structure, expanding service offerings, increasing manpower, and broadening the service area for both entities. As a subsidiary of NAES Corporation, Garrett Electric's specific revenue figures are not publicly disclosed. However, the company maintains a substantial bonding capacity of $50 million, indicating significant financial backing and an ability to undertake large-scale projects. This acquisition by NAES Corporation has undoubtedly strengthened its financial foundation, directly impacting its capacity for growth and larger project engagements.

3. Product Pipeline

Key Products/Services

Electrical Construction, Remodels, and Maintenance:

• Description: Comprehensive electrical infrastructure installation, upgrades, and ongoing support for commercial and industrial facilities.

• Development Stage: Fully operational and routinely delivered.

• Target Market/Condition: Commercial, industrial, medical, educational, and governmental sectors requiring new electrical systems or modernization of existing ones.

• Expected Timeline: Project-dependent, with efficient execution emphasized.

• Key Features and Benefits: High-quality workmanship, adherence to safety standards, and minimizing downtime.

Design-Builds (via OS Engineering):

• Description: Integrated design and construction services, offering a streamlined approach from project conception to completion.

• Development Stage: Fully operational and regularly provided.

• Target Market/Condition: Clients seeking a single point of responsibility for both design and construction phases, ensuring seamless project delivery.

• Expected Timeline: Efficient project completion due to integrated planning.

• Key Features and Benefits: Cost-effective solutions, optimized timelines, reduced client risk, and customized designs.

Low-Voltage Systems:

• Description: Design and integration of various low-voltage systems, including data cabling, communication networks, and automation controls.

• Development Stage: Fully operational.

• Target Market/Condition: Commercial and industrial clients requiring advanced connectivity and control solutions.

• Expected Timeline: Project-specific.

• Key Features and Benefits: Enhanced operational efficiency, improved communication infrastructure, and reliable system integration.

Fire Alarm Systems:

• Description: Complete design, installation, annual testing, and maintenance of fire alarm systems.

• Development Stage: Fully operational and compliantly managed.

• Target Market/Condition: All commercial and industrial facilities requiring robust and compliant fire safety solutions.

• Expected Timeline: Regular installation and maintenance schedules.

• Key Features and Benefits: Life safety compliance, early detection capabilities, and reliable system performance.

Security Systems and Access Control:

• Description: Installation and maintenance of security cameras, access control systems, and related infrastructure.

• Development Stage: Fully operational and regularly implemented.

• Target Market/Condition: Commercial and industrial clients needing enhanced security measures for their premises.

• Expected Timeline: Project-specific.

• Key Features and Benefits: Property protection, controlled access, and enhanced surveillance capabilities.

Emergency Power Systems:

• Description: Evaluation, installation, and maintenance of emergency power solutions, including generators, UPS, and battery storage.

• Development Stage: Fully operational.

• Target Market/Condition: Facilities requiring continuous power supply during outages, such as hospitals, data centers, and critical industrial operations.

• Expected Timeline: Project-specific.

• Key Features and Benefits: Uninterrupted operations, protection against power fluctuations, and enhanced reliability.

4. Technology & Innovation

Technology Stack

Garrett Electric focuses on employing modern electrical systems and staying abreast of advancements in security, access control, and emergency power systems. The company specializes in complete design, installation, and annual testing of fire alarm systems. Their technical capabilities include expertise in PLC (Programmable Logic Controller) programming and SCADA (Supervisory Control and Data Acquisition) systems, which are critical for industrial automation and control. Additionally, they leverage project management and estimation strategies to effectively identify client needs and implement tailored solutions. The company prioritizes staying current with emerging electrical technologies to ensure efficient and reliable service delivery.

5. Leadership & Management

Executive Team

• Nick Naccarato - President: With over 20 years of electrical construction experience, Nick became president in 2004. He holds a degree from Perry Technical Institute and has been instrumental in expanding business opportunities, establishing safety standards, and shaping the company's vision and culture. His achievements include successfully guiding the team to complete projects under budget and diversifying the company's market base.

• Eric Bostrom - Principal: Eric began his career at Garrett Electric in 1991 as an electrical apprentice while pursuing a Mechanical Engineering degree from Washington State University. With over 30 years of dedication and licensure in Washington, Oregon, and Idaho, he focuses on minimizing project costs for clients while ensuring optimal product selection and installation quality. Eric aims to foster a collaborative work environment to position Garrett Electric as a leading electrical contractor in the Tri-Cities area and beyond.

• Tony Spratling: Tony joined Garrett Electric in 2019, bringing a decade of general contracting experience and a degree in Construction Engineering Management from Oregon State University. He is recognized for his leadership in complex projects across healthcare, higher education, technology, and industrial sectors. Tony is an expert in Lean construction practices and proficient in implementing standard operating procedures, adopting technology, and developing high-performance teams.

• Kyle Hergert - Safety Manager: Kyle joined the team in 2021 after receiving his degree in Safety and Health Management from Central Washington University and obtaining his GSP designation. With a background in general construction, he is responsible for ensuring all work is performed safely and is passionate about fostering a positive safety culture through collaboration.

• Jeff Shaw: With 18 years of experience, Jeff has progressed from an apprentice to a Foreman managing multi-million dollar projects. At Garrett Electric, he applies project management and estimation strategies to understand client requirements and develop suitable plans.

• Victor Ursul: Victor, an experienced construction Foreman and CAD Design Draftsman, joined Garrett Electric in 2013. He holds an AAS in Engineering Technology, CITC Commercial Electrician training, electrician licensure in Washington and Oregon, and a certificate in AGC Construction Quality Management. He utilizes his expertise to provide customized, high-quality, and cost-effective solutions for clients.

• Chance Gartner - Purchasing Manager: Chance joined Garrett Electric in 2019 with 17 years of construction industry experience. He specializes in sourcing and identifying the right materials to ensure projects stay on budget and are completed efficiently. His extensive electrical supply expertise allows him to maintain strong vendor relationships.

• Andrea Vinson - Accountant: Andrea joined the company in 2021 with five years of experience in the construction industry, including general and specialty construction. She has significant knowledge in developing standard operating procedures and streamlining processes, holding a B.S. in Accounting from Oregon State University.

• Morgan Grosz - Human Resources Representative: Morgan joined Garrett Electric in 2018 with a background in medical office administration. She initially handled accounts payable and payroll processing and has since transitioned to Human Resources Representative, managing HR activities and taking on various other tasks.

• Robert Lee: Rob joined the team in 2020, bringing over eight years of construction industry experience and a degree in construction management. He provides project support to field teams and manages the special projects group, specializing in tailored solutions for securing equipment and facility infrastructure.

• Jaime Adams - Project Engineer: Jaime has been with Garrett Electric for six years. Starting in accounts payable and payroll, she transitioned to a project engineer role, focusing on administration and coordination for special projects in Oregon.

• Julie Harden: Julie joined Garrett Electric Inc. in June 2021 with over 15 years of administrative experience, including business development, sales coordination, and customer service.

Recent Leadership Changes

A significant leadership and structural change occurred in December 2018 when Garrett Electric was acquired by Olsson Industrial Electric, thereby becoming a subsidiary of NAES Corporation. This integration expanded the company's service capabilities and market reach, providing a stronger corporate backing and wider operational network.

6. Talent and Growth Indicators

Hiring Trends and Workforce

Garrett Electric is dedicated to building and retaining a leading electrical team in the Tri-Cities and Eastern Washington area. At the time of its acquisition in 2018, the company comprised over eighty skilled tradesmen, electricians, engineers, programmers, and administrative professionals. The company actively recruits for key roles such as Project Engineer, BIM Specialist, and Washington Electrical Journeyman. They support employee development through company-financed continued education and training, including the Construction Industry Training Council of Washington (CITC) Apprenticeship Program. These initiatives ensure a highly skilled workforce is maintained. Employee benefits include a competitive salary, 401K, profit sharing, and health care, demonstrating a commitment to employee well-being and retention. The company's current website indicates "18+ Employees" and a substantial $50 million bonding capacity, reflecting its readiness for large-scale projects and continued growth.

7. Social Media Presence and Engagement

Digital Footprint

Garrett Electric maintains an active online presence with links to its Facebook and LinkedIn profiles directly from its website. The company leverages these platforms, along with its "News" section on the website, to disseminate updates, highlight project achievements, and share industry-related content. Recent news posts have featured their comprehensive medical industry expertise, industrial solutions, and collaborative commercial performance.

• LinkedIn: [https://www.linkedin.com/company/garrett-electric-inc./](https://www.linkedin.com/company/garrett-electric-inc./)

• Facebook: [https://www.facebook.com/garrettelectric](https://www.facebook.com/garrettelectric)

8. Recognition and Awards

Industry Recognition

While specific industry awards are not publicly detailed, Garrett Electric has cultivated a strong reputation for "the highest integrity" and "a long-standing reputation for integrity" since its inception in 1978. This standing is built upon core values of honesty, teamwork, and quality, which are consistently reflected in their project execution. The company's extensive portfolio includes notable projects such as the Tri-Cities Airport Expansion, Kadlec Medical Tower Expansion, Othello CBHA Clinic, Big Bend Technical Education Building, Tyson Hamburger Line, Polar Freezer Expansion, Walla Walla Christian Aid Center, Ice Harbor Dam Turbine Replacement, Priest Rapids Dam Turbine Replacements, and the Union Gap Civic Center. This diverse project history across various sectors demonstrates recognized expertise and strong execution capabilities throughout the Pacific Northwest.

9. Competitive Analysis

Major Competitors

The commercial and industrial electrical contracting market in Richland, WA, and the broader Pacific Northwest is served by several established companies. Key local competitors include:

• Factory Electric Inc.: A local firm often offering a range of commercial, industrial, and sometimes residential electrical services.

• Remcoe Electric: Another regional player engaged in general electrical contracting.

• Gradient Electric LLC: Provides various electrical services within the competitive landscape.

• Desert Star Electric, Inc.: Operates in the local market, offering commercial and industrial electrical solutions.

• Prairie Electric Inc.: Competes across commercial and industrial sectors.

• ESSCO Electric: A provider of electrical services in the region.

• Kennewick Electric: Explicitly specializes in residential, commercial, and industrial work, presenting a broad service offering similar to some of Garrett Electric's foundational services.

These competitors often provide similar installation, repair, and system upgrade services, necessitating Garrett Electric to differentiate through its strategic focus on specific industries, design-build capabilities, and the backing of a larger corporate entity like NAES Corporation.

10. Market Analysis

Market Overview

The electrical contracting industry in the Pacific Northwest is undergoing a period of significant growth and transformation. The overall construction sector is projected to grow by 4-5% in 2025. Energy demand in the region is expected to increase by up to 25% over the next decade, with the U.S. smart grid market alone anticipated to reach $22 billion by 2029.

Growth Potential

Key trends driving this market include the surging adoption of renewable energy sources such as solar, wind, and hydroelectric power, with Washington being a significant producer of hydroelectric power. There is also increased demand for energy storage and microgrids, alongside widespread electrification and the integration of smart building designs.

Key Market Trends

Contractors in this market are increasingly expected to act as strategic partners in long-term infrastructure planning, energy efficiency initiatives, and ensuring system reliability. A growing need exists for quick, reliable service, robust backup power solutions (UPS, generators, battery storage), and specialized expertise in intelligent systems for lighting, security, and automation.

Market Challenges and Opportunities

Challenges include maintaining a skilled workforce and adapting to rapidly evolving technologies and regulations. Opportunities abound in leveraging expertise in renewable energy integration, energy storage solutions, and advanced smart building technologies to meet the escalating demands of a modernizing infrastructure.

11. Strategic Partnerships

Garrett Electric's strategic position is significantly strengthened by its status as a division of Olsson Industrial Electric and a subsidiary of the NAES Corporation since December 2018. This affiliation provides expanded service capabilities, a broader operational network, and substantial financial backing. The company also collaborates closely with OS Engineering, the engineering sector of Olsson Industrial Electric, for comprehensive design-build projects, offering clients a single-source solution from conception to completion.

Garrett Electric actively participates in key industry associations, enhancing its market presence and ensuring adherence to best practices. These memberships include:

• Construction Industry Training Council of Washington (CITC): This partnership supports workforce qualification and ongoing employee training, contributing to a highly skilled labor force.

• Inland Northwest Associated General Contractors (NWAGC): Membership fosters industry collaboration, networking opportunities, and adherence to construction excellence.

• Home Builders Association of Tri-Cities: This local affiliation supports community engagement and understanding of regional construction dynamics.

These strategic collaborations and partnerships are crucial for Garrett Electric's operational effectiveness, growth, and market intelligence within the Pacific Northwest.

12. Operational Insights

Garrett Electric distinguishes itself through a steadfast commitment to safety, professionalism, and customer satisfaction, consistently prioritizing projects completed on schedule and under budget. Their design-build capabilities, facilitated by their partnership with OS Engineering, offer a comprehensive solution from conception to completion, providing efficiency and cost-effectiveness for clients.

The company's diverse expertise spans medical facilities, complex industrial operations, commercial developments, and governmental projects, enabling them to tackle unique challenges effectively across various sectors. Being a part of the NAES Corporation family provides enhanced resources, stability, and a broader network, contributing significantly to their competitive advantage in the commercial and industrial electrical contracting market. Their focus on ongoing employee training and professional licensing through entities like the Construction Industry Training Council of Washington ensures a highly skilled workforce consistently capable of delivering quality services compliant with the latest industry standards. These operational strengths underpin their reputation and ability to secure and execute large-scale, complex projects.

13. Future Outlook

Strategic Roadmap

Garrett Electric is strategically positioned to capitalize on the growing demand for electrical services driven by broader market trends in the Pacific Northwest. The company plans to continue its emphasis on safety, quality, and project efficiency, which are foundational to its long-standing reputation.

Growth Strategies

Opportunities include further expansion into renewable energy integration, particularly solar, wind, and hydroelectric power, energy storage systems, and microgrid solutions, aligning with regional decarbonization goals and increased energy awareness. The company can also strengthen its position in the evolving smart building technology and electrification sectors by integrating advanced automation, intelligent lighting, and comprehensive security systems into its core offerings.

Expansion Opportunities

Leveraging its established expertise in PLC programming and SCADA systems, Garrett Electric is well-prepared to pursue more sophisticated industrial automation and control projects. Continued investment in employee training and development, especially in emerging technologies and sustainable practices, will be crucial for maintaining its competitive edge.

Future Challenges and Mitigation Strategies

Future challenges may include adapting to rapid technological advancements, managing supply chain complexities, and attracting and retaining skilled talent in a competitive market. Mitigation strategies involve continuous investment in advanced training programs, strategic vendor partnerships to ensure material availability, and fostering a robust internal culture that attracts and retains top-tier professionals. Its established reputation for integrity and quality, combined with its affiliations with larger entities like NAES Corporation, provides a strong foundation for pursuing larger, more complex infrastructure projects and potentially expanding its geographical reach within the Pacific Northwest.