Midcoast Energy Systems, an energy company based in Damariscotta, Lincoln County, has expanded to a second location 40 miles east in the Waldo County town of Northport to meet growing demand for electrification and other services.
“Our expansion into Northport fills an important service gap created by the consolidation of small and medium-sized businesses,” said William Morgner, president of the company.
Origin of the company
The company's origins date back nearly 50 years to Bob Hardina, who purchased the established Damariscotta Plumbing and Heating Company and changed its name to Midcoast Energy Systems.
In 2000, Hardina sold the company to three employees. Morgner has been with the company since 1983, as have Ron Russell and David Gammage.
Photo/Courtesy of Midcoast Energy
Midcoast's workforce has grown from four in 1983 to 52 today.
Last year, Mr. Morgner bought out his two partners and became the sole owner.
His son Eric is the company's vice president and has worked there for nearly 20 years.
Headquartered at 33 Midcoast Road in Damariscotta, Mid-Coast has grown from four employees in 1983 to 52 today.
“We have experienced exponential growth over time,” Morgner said. “Sales volume has doubled in the past four years.”
Our technicians specialize in heating, plumbing, electrical, geothermal heating and cooling, and air and water quality. The facility includes warehouse and office buildings and approximately 20 trucks.
Service lines have changed over the years.
“When I started, it was all oil, but then we moved to propane,” Morgner said. “Currently, the transition to heat pumps is progressing.”
Growing needs
He said the expansion to Northport is designed to serve the mid-coast region and meet growing demand for a wide range of services including plumbing, heating, generator equipment and heat pump equipment. The second location is expected to create new career opportunities in the region, he added.
Morgner said there is a growing need for skilled technicians in the Midcoast region.
What is driving the expansion? Eric Morgner said the consolidation of small, privately owned energy companies being acquired by larger companies is creating a service gap.
“Many people are being displaced from these jobs, and many customers are unable to find plumbers, electricians and contractors,” Eric said. “We looked at Northport because we had been getting calls from that area for years.”
The advantage of having a Northport site is that we can not only perform installations, but also provide regular services.
“From a business perspective, we're essentially doubling the opportunity to get into people's homes,” Eric said.
organic growth
The Northport location (820 Atlantic Highway) is a former auto garage with ample space offering expansion opportunities.
Photo/Courtesy of Midcoast Energy
Mid-Coast Energy's expansion into Northport reflects customer inquiries it has been receiving from the region.
“We're trying to grow organically,” Bill Morgner said.
Currently, Northport's staff consists of existing employees (one estimator and two technicians) who live between the two locations. However, the company is always looking to hire and offers on-the-job training. For the past 10 years, apprenticeships have also been offered through the Main Traineeship Programme.
“We currently have two high school students working for us, and one just graduated and is going to vocational school. We hope he will come back,” Eric said. “We have a technician who is almost 23 years old. He started working for us when he was 16 years old. He has multiple licenses and is truly ‘The Man.’”
Employee attraction and retention programs include health insurance for employees and their families, including dental and vision care. Paid vacation, disability insurance, and 6% company match on 401(k) retirement plan.
Demand for heat pump equipment has fallen slightly over the past six months or so, but it remains a popular item.
“There are people who just use heat pumps all day long,” Eric said.
Electrification trends
This expansion reflects certain trends in the electrification sector.
Earlier this year, Belfast-based SolarLogix LLC moved into larger, purpose-built facilities to accommodate annual revenue growth of 50% to 100% since the company was founded in 2015. Last year, the company had 30 employees, which has now grown to nearly 50.
Similar trends can be seen at other companies.
Since 2008, Ryan Keith has grown Northeast Heat Pumps in Brunswick from a one-person operation to approximately 1,200 installations per year with 25 employees. 60% are retrofits for customers looking to switch away from fossil fuels.
Existing HVAC companies are switching or adding to appliances, and new companies are entering the space, many offering on-the-job training or working with manufacturers and higher education. Efficiency Maine has more than 500 registered heat pump installers, which is more than many other states.
Earlier this year, Maine won a $62 million grant from federal funds for the use of solar energy in low-income communities.
There is also a movement to build practical-scale battery systems that use both iron-air and lithium ions to store electricity.
