EMCOR GROUP, INC.'S CORPORATE-WIDE COMMITMENT TO SAFETY RESULTS IN INDUSTRY-LEADING ACCIDENT REDUCTION
Integrated Approach Across Business Units Yields 28% Reduction In Accidents
Accompanying Visuals: (1) Chart showing decrease in accidents despite an increase in labor hours , (2) Photo of CNA Insurance Co. presenting a plaque to EMCOR Chairman and CEO.
NORWALK, CONNECTICUT, July 25, 2006 – Underscoring its strong commitment to safety, EMCOR Group, Inc. (NYSE: EME), a Fortune 500® leader in mechanical and electrical construction, energy infrastructure and facilities services for a diverse range of businesses globally, has recorded a 46 percent reduction in the Company’s Total Recordable Incident Rate (TRIR) since 2002. This has been achieved during a period when labor hours increased but recordable injuries decreased by 28 percent. Further, this represents a 47 percent reduction in 2006 projected lost and restricted duty days vs. 2005 lost and restricted duty days, and a projected 60 percent reduction in lost and restricted duty time in 2006 vs. 2003 while labor hours are estimated to increase by 12 percent in 2006.
“As the world’s largest specialty construction company, safety is a central tenet of our mission and an integral part of our day-to-day operations,” said Frank T. MacInnis, Chairman and CEO of EMCOR Group. “This commitment begins at the top and extends throughout the Company to our job sites. On an annual basis, EMCOR’s injury rate is 50 percent less than OSHA published rates for construction and facilities services companies. But even with this impressive record, we are striving to make every year a safer one and are predicting a further reduction in accidents at a time when we are working more labor hours than any other time in our history.”
EMCOR’s commitment to safety is part of an integrated approach that includes improving quality and productivity. Through the Company’s Safety and Quality Management (SQM) Department, EMCOR originated its Zero Accident Program (ZAP) that utilizes the combined strategies of Visitation, Communication and Education across the Company’s 70 subsidiary companies and 26,000 employees. It involves: visits by SQM professionals targeting all levels of the organization and focusing on safety compliance and performance, including top field management, administration, field supervision and labor, with an internally developed “Productivity Plus Road Show” that focuses on (1) the business case for safety, (2) the important correlation between productivity and safety, and (3) why productivity is the key to great safety, quality, customer satisfaction and improved margins. The program also involves engaging and motivating employees through a “Strategic Publications Campaign”, an array of interesting and professionally-presented publications.
“Our integrated approach is based on the principle that the same practices that improve safety – planning, measurement, data analysis, employee involvement and audit – are the same practices that improve quality and productivity,” said Dave Copley, Vice President, Safety and Quality Management for EMCOR Construction and Facilities Services. “By combining these principles with the buy-in of management and the implementation of risk-based action, we are constantly building a safer and more sophisticated corporate model of which every employee can be part of and proud.”
EMCOR developed its formula for safety success with CNA Insurance Company, which has recently recognized EMCOR for its program design and high level of safety performance. This process involves determining root causes of accidents, evaluation of risk, and identifying appropriate action that results in reduced accidents; it also involves engaging the Company’s communications people to ensure ongoing and consistent messaging relative to safety and helping to make employees feel even more positive about the Company and the fact that they work for EMCOR. The process additionally includes the introduction of quality management tools adapted to measure and demonstrate the capabilities of the safety process.
About EMCOR Group, Inc.
A Fortune 500 company with over $4.7 billion in annual revenues, EMCOR Group, Inc. (NYSE: EME) is a global leader in mechanical and electrical construction, energy infrastructure, and facilities services. EMCOR gives life to new structures and sustains life in existing ones by its planning, installing, operating and maintaining the sophisticated and dynamic systems that create facility environments---such as electrical, mechanical, lighting, air conditioning, heating, security and power generation systems---in virtually every sector of the economy and for a diverse range of businesses around the world. EMCOR’s “knowledge in action” slogan reflects its rare combination of global reach with local execution, combining the strength of an industry leader with the knowledge and care of 140 locations worldwide. The 26,000 skilled employees of EMCOR have made the company, in the eyes of leading business publications, amongst America’s “Most Admired” and “Best Performing.” EMCOR’s diversity---in terms of the services it provides, the industries it serves and the geography it spans---has enabled it to create a stable platform for sustained results. The Company’s strong financial position has enabled it to attract and retain among the best local and regional talent, to undertake and complete the most ambitious projects, and to redefine and shape the future of the construction and facilities services industry. Additional information on EMCOR can be found at www.EMCORGroup.com.
This release may contain certain forward-looking statements within the meaning of the Private Securities Reform Act of 1995. Any such comments are based upon information available to EMCOR management and its perception thereof, as of this date, and EMCOR assumes no obligation to update any such forward-looking statements. These forward-looking statements may include statements regarding market opportunities, market share growth, gross profit, backlog mix, projects with varying profit margins, and selling, general and administrative expenses. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly these statements are no guarantee of future performance. Such risk and uncertainties include, but are not limited to, adverse effects of general economic conditions, changes in the political environment, changes in the specific markets for EMCOR’s services, adverse business conditions, availability of adequate levels of surety bonding, increased competition, unfavorable labor productivity and mix of business. Certain of the risks and factors associated with EMCOR’s business are also discussed in the Company’s 2005 Form 10-K, its Form 10-Q for the first quarter ended March 31, 2006, and in other reports filed from time to time with the Securities and Exchange Commission. All these risks and factors should be taken into account in evaluating any forward-looking statements.
CONTACT:
Mava Heffler
Vice President, Marketing & Communications
203-849-7814
Linden Alschuler & Kaplan, Inc.
Media: Josh Epstein
212-575-4545
