CH2M later CH2M Hill was an engineering firm that offered design, engineering, construction, and strategic advising services for both government and private corporations. The company, originally organized in Delaware, is headquartered in Englewood, Colorado, and served the communications and computer technology industries in the areas of wireless networking, digital computing, electronic communication, systems design and manufacturing. The firm has branched out into other areas as well, including energy, transportation, communications, financial markets, and environmental technologies. It also provides a full range of managed services to help their clients improve their organizational performance. This article discusses the history of CH2M and some of the current challenges that the company is facing.
In the late 1990s, CH2M was purchased by the Black & Decker Company, an international flooring manufacturer. The acquisition marked the beginning of several years of growth for the company. In the months following the purchase, the company acquired two other companies: The Electrical Power Products Corporation of Denver, CO and the Teleflex Industries, Inc. of San Diego, CA. In addition, in March of 2021, CH2M was acquired by Avaya, Inc. In the years since the acquisition, CH2M has expanded aggressively into several new markets, each with its own unique challenges and opportunities.
In the past several years, there has been significant pressure placed on CH2M by competitors in the telecommunications and information technology markets. Some analysts feel that competitors are using CH2M's size and reach to squeeze out its relatively small market share. Others believe that CH2M is simply too large a company to be an effective competitor in many of the shrinking markets. The pressures on CH2M include: First, the company is competing with many smaller companies for business in rapidly growing fields such as software and communications. Second, its significant financial resources and long-standing relationships with U.S. carriers have helped it maintain its competitive advantage.
As a result of these and other factors, the company is undergoing a number of strategic changes designed to improve its overall management and operational effectiveness in its several new markets. In an effort to maintain its previously held strengths in these new markets, the company is expanding its sales force in the most direct way possible: by adding new sales people to its existing customer service force. In addition, the company is streamlining its internal operations in order to improve productivity and to reduce expenses.
The company recently acquired two sites in Corvallis, Oregon – the former Corvallis High Street location and the Hanford Site. The acquisition of the Corvallis site represents a significant expansion of CH2M's business presence in the state of Oregon. In addition, the acquisition of the Hanford Site brings to two locations the Company's established manufacturing capabilities. The . . . . . . acquisition of both sites provides CH2M with additional access to raw materials and ore deposits in order to meet the demands of both the Pacific Northwest and South Eastern regions.
“CH2M is one of the world's most successful vertically integrated engineering companies,” said Frank Cusco, President and CEO of CH2M. “The combination of our acquisition of two key sites in Corvallis and a number of manufacturing facilities in North America gives us the ability to serve two increasingly important markets. The purchase of the Hanford Site in particular will allow us to service the fabrication industry while concurrently looking to expand our customer base in the far flung west and north.