Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 703

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 703
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 the projects we manage.  We also depend on the availability of certain equipment to perform our services.  We operate a diverse fleet of on-road and off-road equipment.  Substantially all of our equipment is obtained from third-party vendors, and we are not dependent upon any single vendor for our equipment requirements.  We also utilize independent contractors to assist on projects and to help us manage our work flow.  Our independent contractors typically provide their own vehicles, tools and insurance coverage.  We are not dependent on any single independent contractor.  A number of factors that we may not be able to accurately predict or control could result in increased costs for, or delays in delivery of, materials and equipment, including supply chain disruptions.

In 2022, certain market-related supply chain disruptions affected our industry, and as a result, we increased our level of purchasing activity to secure the necessary materials and equipment to meet our project requirements.  While these supply chain disruptions moderated primarily in 2023, our operations could be negatively affected in the future if such disruptions were to recur.  In addition, certain of our clean energy customers began experiencing regulatory-related supply chain issues in 2022 that resulted in delays, shortages of, and increased costs for, the materials necessary to construct certain solar renewable projects, which affected our ability to perform these projects.  While the related supply chain issues eased primarily in 2023, our ability to perform these projects could be negatively affected in the future if such delays for certain materials were to recur or prices therefor increase.  Further, the effects of tariffs and similar types of trade policies could lead to issues with global supply chains on a macroeconomic scale, including steel, solar panels and construction equipment which could have a material adverse effect on our business, financial condition and results of operations. 

We need working capital to support seasonal variations in our business, including the effects of weather and other conditions on outdoor construction and maintenance work, the spending patterns of our customers and the effects of regulatory and market factors, all of which can influence the timing of spending to support related customer demand.  See Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition, Liquidity and Capital Resources - Working Capital,” which is incorporated by reference.

Competition 

Our industry is highly competitive and highly fragmented.  We compete with a number of companies in the markets in which we operate, primarily large national firms, as well as small local independent companies.  Certain barriers to entry exist in the markets in which we