And as those debts come to maturity, that could have an impact. But again, go back to our boxes and you think of our customers that are driving this right now. Data center customers, whether they be in build for use, which is one part of the market or those big customers are doing it themselves, they have cash, and they continue to generate cash. They’re not dependent on financing. Semiconductors because of who they are and who they’re funded by even without our government funding are fairly good with cash. There, it’s going to be a matter of as they commission the first fabs on these sites, what have they learned as they go to the second one, there could be delays. There always is. That could be an issue, right? So those customers are more cash rich.
The pharma company is the same. Healthcare looks pretty healthy right now. They have a need to be able to put hospitals in the market, right? They just don’t build a hospital. Someone has to tell them there’s a certificate of need for you to build that hospital in this market and especially in markets where the demographics are shifting to, we continue to see that. And then there’s old hospitals, right? We’re doing work at Mass General right now, great hospital but outdated facilities that they’re rebuilding, and we’re thrilled to be part of that. And so I feel good about it. If you’re going to see it anywhere, you might start to see it in some of the energy efficiency work we do for our commercial customers. But they’re going to be caught between things, right?
Because if they don’t make their buildings more energy efficient, they become harder to lease. So there’s a lot going on there. I feel pretty good about where we’re at. But I think, in general, there could be some — you see it in the warehousing, you’ll probably see in retail something we don’t serve very much is where you’ll really see it, and then you’ll get it with people with strained balance sheet, some of these private equity-owned assets that have a lot of debt on them.
Operator: [Operator Instructions]. The next question comes from Adam Thalhimer with Thompson, Davis.
Adam Thalhimer: Welcome, Andy. Look forward to meeting you. Actually, Tony, can I just keep going on your PE comment? Are you seeing them show up less on M&A opportunities? Finally…
Anthony Guzzi: No, not with the kind of deals we do. I think they look at the size we like to do $50 million to $200 million, I think they say, hey, there’s a place we can put all equity. And the earth and heavens will come together, and we’ll be able to finance this at a lower rate in the next 18 months. So we don’t believe that. That’s clearly what they believe. So no, the answer is no. We really don’t compete against them a lot. I mean, if someone really wants to go to PE, we’re probably out in the first round anyway, we — to get the great cultural fit and really understand the management team and it is a management team that’s going to be there for the long term, sometimes that’s not a great fit.
Adam Thalhimer: Okay. All right. I’m going to try to do this, going to ask a 3-part question. On RPOs, one, is there a point where you feel like you’re too full? Two, are you starting to book jobs further out? And three, do you think some of the RPO growth is market share gains?
Anthony Guzzi: Yes. So I’ll take the third one. I don’t even think about market share, never have. Such a big market that 19 years, more 30 years, got 30 years, you guys ever look at market share? So you can take that one away. We don’t think about it. We wouldn’t know how to answer that question. Massive market, we’re a small part of it. Second one, are we too full? That becomes a question of what’s the project, what’s the size of the project, what’s the timing of that project. So here’s how I think about that. Our governor has less to do with how we’ll be able to fill skilled craft and technical labor. We’ll find that. We’ve always found — and we’re a really great place to work. We’ve done a really good job staying ahead of the development of foreman and project managers.
And then where we don’t have them developed, being able to hire really good people from the outside. So if there’s a slowdown in RPO, it’s not because we don’t think we can develop them. It’s just the mix [indiscernible] right, these things come episodically. Rarely do you see a run like we’ve had over the last 2.5 years where RPOs just consistently grow, right? I mean, it tends to be more sought to in how RPOs grow. And the third part of the question, Mark, was?
Mark Pompa: Well, I think your question is further out. So 17% of our RPO balance is scheduled to be revenued beyond 12 months.
Anthony Guzzi: That’s pretty consistent.
Mark Pompa: Actually might be on the low side, to be quite honest.
Anthony Guzzi: Data center work gets done quickly. These big jobs get done in 6 to 9 months sometimes.
Adam Thalhimer: Okay. And then there was a comment in the queue about small project quick turn risk, that’s the biggest potential headwind, higher interest rates? Are you seeing that yet? I couldn’t…
Mark Pompa: I’m sorry, Adam. I think history has shown us that when we’re in a rising rate of economy with inflationary pressures, the easiest thing for people to curtail spending is small project work. To date, we haven’t seen it clearly in our performance, but it’s certainly we’re certainly monitoring very closely.
Anthony Guzzi: Yes. I mean — and there’s a lot of things going on there right now that are different, right? That’s where we’ve seen it in the past. What’s different today is energy prices, and the paybacks are quicker. So how that all balances out over time, we’ll see.
Adam Thalhimer: Okay. Lastly on industrial. Tony, you made a comment, you said something was robust, but the turnarounds were flat in Q4. So I didn’t understand that.
Anthony Guzzi: Yes. So we have good — I probably didn’t say — I might have said robust around our niche services. We continue to see demand for niche services like heater repair and things like that. We have good demand for our shop services, the best we’ve had since 2016, ’17 in 6 years. So my view is robust, but robust is how I would describe the niche services.
Adam Thalhimer: Niche services, got it. And then are there any — for that segment, do you see any new secular drivers? I’m thinking kind of 1, 2, 3 years out.
