Coastal Radiates QUALITY Throughout the Sunshine State

While “Quality Through Customer Service” is easy for any company to claim, it becomes much more difficult for many companies to honor to the consistent degree achieved by Coastal Mechanical Services, LLC, Melbourne, FL (CMS). Its high standard of excellence has helped Coastal build solid customer relationships and deliver premium HVAC, plumbing, piping, and process systems to the commercial and private market sectors across Central Florida.

From systems design and engineering to installation, CMS's estimators, engineers, project managers, and craftsmen bring superior talent, initiative, and dedication to every project. Additionally, Coastal Mechanical Services places an emphasis on apprentice training, and incorporates a safety culture that resulted in 1.8 million hours without a lost time accident in 2008.

We at ContractingBusiness.com feel we might be a bit overdue in recognizing this excellent company. And now, we wait no longer, as we name Coastal Mechanical Services, LLC, Melbourne, FL, the ContractingBusiness.com 2009 Commercial Contractor of the Year.

Acquisition Leads to New Life

Coastal Mechanical Services, LLC was founded in 1985 by H. W. “Skip” Hauser, through his Venture Management Group (VMG), a start-up and acquisition firm which provides behind-the-scenes business advice, start-up capital, bonding, and other support. VMG had purchased the assets of D&G Air Conditioning, a sheet metal subcontractor that had fallen on hard times. Coastal Mechanical Services was Hauser's first venture into the construction industry. It was a true learning experience, but he made sure he had the right people in place to grow the company.

Six months later, CEO/President Al Osterhout joined CMS as an estimator. Osterhout had earned a degree in construction management at Colorado State University. At the time Hauser recruited him, Osterhout was working for industry giant Natkin Contracting, LLC. He was named an equity partner and general manager of CMS in 1991.

“There was a point when I thought CMS would never be as good as Natkin; eventually, we passed them on a national survey,” Osterhout recalls.

Another leader Hauser brought on board was Kim Brown, an auditor who joined the CMS team in 1994 as chief financial officer. Today, she serves multiple roles, as co-owner of Coastal Mechanical and co-owner/CFO of Venture Management Group.

Coastal Mechanical Services' sales volume for 2008 topped $170 million, consisting of:

• $80 million from installations
• $40 million from service
• $25 million from system fabrication and manufacturing
• $25 million in electrical contracting.

Coastal Mechanical Services has completed more than 75 healthcare projects throughout Florida, totaling in excess of $180 million. Its more than 80 government, entertainment, and hospitality projects have exceeded $150 million.

In addition, an independent service organization — CMS Mechanical Service Company, led by 25-year industry veteran Bob Bull — posted 2008 sales of $50 million.

Despite concerns over the economy, positive attitudes are evident throughout CMS, from the Melbourne office, to the more than 960 CMS employees who operate out of branches in Orlando, Jacksonville, Tampa, and West Palm Beach.

All Star Team

Osterhout emphasizes the importance of building consensus among his managers, and he's nurtured a solid team of mechanical contracting professionals. Osterhout has high praise for all.

“Miles Sims (chief estimator) is the best estimator I've ever worked with, and P.J. Goodwin (vice president, operations) has implemented production measures to a degree I never thought possible,” Osterhout says. “Coastal CFO Robb Morrison is integrated into everything we do, and Dan Dietel (president, special projects) helped us refocus on how important long term relationships are, especially in tough times.