Duke Austin
President and Chief Executive Officer at Quanta Services
I think on the transition side of the business, we're seeing a significant amount of ramp there in areas. It's spotty. No, we're not anywhere near capacity from my standpoint. I think we've got a lot of room. We've not seen anything that would back us off, to say that we're concerned with labor at this point. We're in good shape.
Look, we have a good look at it, a good five-year look at what we see, very close to the business, very close to our clients. We work with them quite a bit on long-term natures and programs and what's going on, when you go from West to East and the coverage that we have, you're able to see the things that we know are going to happen, they start in the West like when you start to see vehicle penetration in the West, you know it's going to move across the country.
And we're starting to see those impacts. I think Edison had a good report on kind of how their grid is changing. And I think it gets -- it gets worse, not better. I think capital goes up even from what they're seeing.
And I think you'll continue to see that, as you see the total cost impacts of energy really require the grid to be robust to create the environment that you want, which is the customer builds going down, you have to build this infrastructure out to get the total cost of energy down.
It's happened in Europe, you'll start to see more and more of that getting fed, which is really important for us to get in front of the necessary capital at the local level, at the state levels, so they understand in order to get the cost down and you've got to get the infrastructure.
And it's also security for the country, is to get the grid where we need it to be. And you're going to see that with loads going up in places, no one expected load to go up like this.
The areas that you're seeing a load, they did not expect data cities to come in and take, call it, 3 gigs, 5 gigs and they don't want -- they want secure power. So sometimes that requires multiple lines. And when you look at all this and you look at what's coming at you, you're backed up by this.
The technology that's coming into the world that requires our services, across the board, in the utilities rooting growth business, they're growing. And it's necessary for them to spend capital, it's just a matter of getting it through from a federal push into the state regulators. And we kind of said that all along that this is necessary, it's going to come to a head, and you're seeing it.
This transition will be noisy. It will be things that you'll see, it's not straight up every day. It's going to have CAGR look to it at times, in parts of the business. That's why I like the portfolio so much, as we can move around and kind of get through this transition here and continue to what I believe perform at a high level and deliver the results we have.
