P3 Services goes deep to expand its national footprint
If the key to long-term success is a solid foundation, P3 Services is going to have a long and prosperous life span. In just the first half of 2022, P3 has established itself as a holding company with coast-to-coast reach, loyal employees, and long-term customer bases.
In January of this year, Stellex Capital Management completed its purchase of P3, a provider of plumbing installation, maintenance, and repair services across a diverse range of geographies and building types. P3 operates in multiple states under separate brands and entities, but shares consolidated corporate resources. The business spans the spectrum of residential and commercial construction and service sectors.
P3 operates as Peltram Plumbing in the Seattle market, Precision Plumbing and ER Plumbing in the Charlotte market, and Power Plumbing in several Texas markets. This together with the acquisitions of three additional plumbing companies (Premier, Pioneer and Patriot), P3 is growing fast. At present, the company employs a 650-strong workforce throughout these regions, and that number is poised to rise as CEO Terry Young steers the business into its future.
With those firm foundations, the holding organization now has its sights set on continued development of the individual companies. P3 is fast asserting its companies as industry leaders for plumbing services in their respective markets and identifying additional MSAs to keep the growth going at a steady clip. The company is looking to expand in the areas in which it currently operates as well as in multiple new markets that will broaden its already extensive reach.
“We have acquired new companies outside of the existing business and, through due diligence, we're looking for the right partners to join our organization, provide us with the ability to better service our customers, and provide us with a way to expand our portfolio,” Young said.
The company is expanding within the existing businesses as well, supporting the organic growth of product lines and service offerings. Chad Lusco, CEO of the organization’s services division, works with Young to execute the group’s vision and strategy for broadening its portfolio of service businesses. As of June, P3 Services doubled their service revenue since Stellex acquired the portfolio in January 2022.
In May, Lusco announced the official partnership between P3 and Discovery Sound Technologies to bring their customers the most advanced predictive maintenance solutions available. The technology will be offered as a key component of P3’s predictive maintenance programs across the portfolio.
P3’s goal is to provide their customers with a full holistic end-to-end service opportunity for their buildings and facilities, and plans to increase its mechanical, plumbing, and electrical offerings in tandem with new market entries. To that end, Young and Lusco, in concert with Stellex, spearheaded the acquisition of three service businesses in the first three months, and are on pace to find more best-fit companies to fulfill their ambitious agenda.
Local expertise, national support
In the building services sector, the success of a business is focused on the deliverables of people and materials, and that plays into the decision-making around acquisitions. For companies with superior reputations and strong customer loyalty who have reached the peak of their capacity and are seeking the support of a larger organization, P3 just might be the best fit.
P3’s support mechanisms for new acquisitions include additional opportunities for collaboration, best practices, innovation, and technology. “We help them expand their current offerings and streamline support to their customers in their local marketplaces where their brands exist,” Young noted.
Ensuring that companies in their network retain the branding that customers are familiar with, they continue operating under local leadership in order to stay connected to the communities they serve while supporting the expansion of an acquired business' offerings.
“We don't look to change the brand if they have a strong presence in their local market,” he said. “We help them grow that brand in their local marketplace by utilizing the same labor forces they have, and then helping develop the individuals inside those businesses.”
The core values of safety, innovation, collaboration, and service are deeply inculcated across the companies that make up P3. Unsurprisingly, Young puts safety at the top of the list.
“We're in the construction industry where people put themselves at risk every day,” he said, stressing that the safety of our workforce and our customers is always paramount. In addition to following strict safety protocols, P3 companies invest in training and technology that encourage safe practices on and off the job site.
The construction industry as a whole has notoriously lagged behind others when it comes to the embrace of technology. That’s not the case at P3, where dedication to the principles of people, process, and technology drives their pursuit of modernity, productivity, and efficiency.
P3 Services is, as Young puts it, ultimately looking to become an “employer of choice” by providing “a culture around better service, installation, and service offerings to our customers and potential new customers in the building services and building construction industry.”
They are also looking to acquire new partners to join its growing team. “We're continuing to build out our brand across the U.S. to provide a better-established construction and services offering for our customer base in the building construction industry,” Young said.
It may be early days for this driven young enterprise, but it’s clear that its investors and executives are committed to making bold, and some would say, fearless inroads in plumbing and mechanical services.
P3 Services is assembling an unmatched team of the nation’s leading local providers of plumbing, mechanical, and electrical installation and services. We believe in the philosophy of local firms for local customers, and every one of our operating companies maintains local leadership and strong ties to their community. We give these firms the resources they need to get to the next level. The tools they need to provide even better customer service and be the undisputed career choice for the most talented technicians in their market. By contributing extensive industry expertise, technological know-how, recruiting support, and financial stability, we help our operating companies set new standards for innovation, service excellence, and employee satisfaction.