Tracie Malesa visits with Larry Gregurich, client and owner of Big Dog Properties, at Willow Park Plaza in Gretna

Midlands Business Journal

JUNE 18, 2010 THE WEEKLY BUSINESS PAPER OF GREATER OMAHA, LINCOLN AND COUNCIL BLUFFS VOL. 36 NO. 25

Du-Rite Electric sees increased opportunities through government contracts

by Matrissa Leggett

Du-Rite Electric in Elkhorn became a contract holder of the General Services Administration schedule in December, allowing the company to work on projects for government entities using pre-determined pricing and create an additional revenue stream. It also specializes in residential and commercial projects.

According to Tracie Malesa, vice president, the initial reason the company chose to become a contract holder was to be able to take part in projects that the current administration is creating through government programs.

“The programs were for projects to improve infrastructures, and in most of those projects, electrical work would be needed,” Malesa said. “We saw it as an opportunity for a new line of work we hadn’t done before.

“We are the only electrical contractor in Nebraska and Iowa to currently hold that schedule.”

Malesa said the company anticipates that upcoming government projects could potentially boost revenue by $1 million within a year. She said revenue for Du-Rite Electric had been between $1.2 million and $1.5 million annually up until it took a drop in the past two years because of a decrease in the overall construction industry.

“It is beginning to climb again, although we do have to do more projects now to reach the same revenue because our profit margins have decreased.”

Another growing area for the company is in the residential arena. Malesa said the company has found a niche working with outdoor pools, spas and kitchenettes.

“In this economy, people are staying home more and using their outdoor areas for entertaining,” she said.

Home automation is becoming popular as well, with more homeowners installing the systems. According to Malesa, the systems have such capabilities as dimming and bringing up lighting, pausing movies on DVDs and/or controlling the water temperature in showers.

Although the company is faring well overall, there are still challenges in construction-related industries because of the economic downturn, Malesa said.

“Up until two or three years ago, once we had an established relationship with a builder, we didn’t need to continue bidding with them,” she said. “Now, with the volatility in the industry, the contractors have to do more bidding as well.”

She said subcontractors in all specialties are dealing with more bidders for each job and companies that are underbidding to get projects.

“From the time my grandparents started this company, it has been through cycles of good times and bad times,” Malesa said. “If we can figure this out and survive, we will be stronger, better and poised for the future.”

The business was founded in 1958 by Roger and Marlene Charbonneau, who retired in 2005. Their daughter, Valerie, has been part of the company most of her life and now is one of the owners along with her husband, Edward Malesa, president. He joined the company in 1969. Along with Tracie, two of the Malesa’s other children, Amy Horton and Josh Malesa, are a part of the business and have ownership. Two daughters, Kylie, 19, and Nicole, who is in the retail industry, are not a part of Du-Rite Electric. Edward’s brothers and Josh’s father-in-law are part of the business.

Du-Rite Electric Inc.

Phone: 289-2251

Address: 115 S. 204th St., Elkhorn 68022

Founded: 1958

Employees: 11

Services: electrical contractor for residential, commercial and government projects

Goal: Further develop government work.

Industry outlook: “This is a tough time for construction in general.”

Website: www.DuriteElectric.com

Reprinted with permission from the publisher of MBJ Inc. from the June 16, 2010 issue of the Midlands Business Journal