Burns & McDonnell, which ranked third among Engineering/Architecture firms on BD+C’s 2018 Giants list, is launching an ambitious growth campaign that includes hiring at least 1,000 employees annually “for the foreseeable future,” and increasing the size of its World Headquarters in Kansas City, Mo., by 22%.
By year’s end, Burns & McDonnell expects to have 6,650 employees, more than half of whom will be working outside of Kansas City. The company has 11 regional offices in North America, and seven offices scattered across Europe, Africa, Asia, and the Middle East.
A 142,000-sf addition to its headquarters, which the firm is designing and building, is scheduled for completion by the summer of 2020. The company’s existing four-story 310,000-sf headquarters building opened in 2016 on a 34-acre campus in South Kansas City.
The $42 million new construction project is expected to commence in a week or two, beginning with a 550-slot parking garage, according to Brittany Swartz, a project manager in the firm’s Commercial Architecture group. The headquarters expansion will include 42 conference rooms, two large training rooms, and 780 work spaces.
Burns & McDonnell reported nearly $3 billion in revenue generated in 2017, of which $290.2 million derived from services provided for nonresidential building in several sectors that include commercial, retail, institutional, aviation, military, and manufacturing.
The firm is expanding to provide “full service solutions” for project owners that are seeking greater scheduling and budgeting certainty. Ray Kowalik, a 31-year company veteran who was named its CEO and chairman last year, adds that Burns & McDonnell had been growing and a 10-12% annual clip, which he believes can be boosted to 15%.
He cites four trends that are driving growth:
•A robust economy, favorable corporate tax law changes, and low energy prices, all of which are spurring investments in the U.S., especially in the chemicals market which is one of the firm’s largest sectors;
•The shift toward natural gas and renewable energy production that’s creating opportunities in the transmission, distribution, and generation markets;
•Greater government investment in resilience to secure and modernize aging facilities; and
•Mushrooming airport passenger traffic, and the need to find new ways to alleviate congestion at domestic and foreign terminals.
Burns & McDonnell shouldn’t have too much trouble meeting its hiring goals: it receives about 80,000 resumes per year, and the company has already hired 1,000 people in 2018, as of today’s announcement. It expects its hiring number to top out at 1,400 this year. “We’re a company that a lot of people want to work for,” says Kowalik. (In prior years, the company would typically offer employment to between 300 and 400 people, with 90% of applicants accepting.)
Kowalik says Burns & McDonnell already has a pretty good system in place for assimilating new hires, which includes extensive training and mentoring. (He said the company’s attrition rate is about 5% annually.)
While the power, gas, oil, and chemicals sectors are among the markets driving growth, Kowalik says his company is also expanding its nonresidential building activities, notably in the areas of office and multitenant apartment construction. “We’re extremely busy in Kansas City,” he says, having recently completed a new office building there for Creative Planning, a local wealth-management firm.
Kowalik adds that new tax policy is sparking “multibillion-dollar projects” in the chemicals industry, which are likely to trigger new commercial construction that supports that business. He expects a similar “trickle down” effect from oil and gas.
Historically, Burns & McDonnell has grown organically, “one employee at a time,” says Kowalik. But in recent years it has bolstered its presence on the construction side with acquisitions of two contractors, AZCO Inc. in Wisconsin and Ref-Chem in Texas.
Kowalik says that it’s possible that his company might seek out joint-venture construction partners. But he hedged about future acquisitions. “The minute I say ‘we’re interested,’ we get 20 calls.”
He is concerned, though, about the skilled-labor shortage, and thinks the AEC industry needs to take a more active role in outreach and training.
Related Stories
Construction Costs | Mar 15, 2024
Retail center construction costs for 2024
Data from Gordian shows the most recent costs per square foot for restaurants, social clubs, one-story department stores, retail stores and movie theaters in select cities.
Healthcare Facilities | Mar 15, 2024
First comprehensive cancer hospital in Dubai to host specialized multidisciplinary care
Stantec was selected to lead the design team for the Hamdan Bin Rashid Cancer Hospital, Dubai’s first integrated, comprehensive cancer hospital. Named in honor of the late Sheikh Hamdan Bin Rashid Al Maktoum, the hospital is scheduled to open to patients in 2026.
Codes and Standards | Mar 15, 2024
Technical brief addresses the impact of construction-generated moisture on commercial roofing systems
A new technical brief from SPRI, the trade association representing the manufacturers of single-ply roofing systems and related component materials, addresses construction-generated moisture and its impact on commercial roofing systems.
Sports and Recreational Facilities | Mar 14, 2024
First-of-its-kind sports and rehabilitation clinic combines training gym and healing spa
Parker Performance Institute in Frisco, Texas, is billed as a first-of-its-kind sports and rehabilitation clinic where students, specialized clinicians, and chiropractic professionals apply neuroscience to physical rehabilitation.
Market Data | Mar 14, 2024
Download BD+C's March 2024 Market Intelligence Report
U.S. construction spending on buildings-related work rose 1.4% in January, but project teams continue to face headwinds related to inflation, interest rates, and supply chain issues, according to Building Design+Construction's March 2024 Market Intelligence Report (free PDF download).
Apartments | Mar 13, 2024
A landscaped canyon runs through this luxury apartment development in Denver
Set to open in April, One River North is a 16-story, 187-unit luxury apartment building with private, open-air terraces located in Denver’s RiNo arts district. Biophilic design plays a central role throughout the building, allowing residents to connect with nature and providing a distinctive living experience.
Affordable Housing | Mar 12, 2024
An all-electric affordable housing project in Southern California offers 48 apartments plus community spaces
In Santa Monica, Calif., Brunson Terrace is an all-electric, 100% affordable housing project that’s over eight times more energy efficient than similar buildings, according to architect Brooks + Scarpa. Located across the street from Santa Monica College, the net zero building has been certified LEED Platinum.
Museums | Mar 11, 2024
Nebraska’s Joslyn Art Museum to reopen this summer with new Snøhetta-designed pavilion
In Omaha, Neb., the Joslyn Art Museum, which displays art from ancient times to the present, has announced it will reopen on September 10, following the completion of its new 42,000-sf Rhonda & Howard Hawks Pavilion. Designed in collaboration with Snøhetta and Alley Poyner Macchietto Architecture, the Hawks Pavilion is part of a museum overhaul that will expand the gallery space by more than 40%.
Affordable Housing | Mar 11, 2024
Los Angeles’s streamlined approval policies leading to boom in affordable housing plans
Since December 2022, Los Angeles’s planning department has received plans for more than 13,770 affordable units. The number of units put in the approval pipeline in roughly one year is just below the total number of affordable units approved in Los Angeles in 2020, 2021, and 2022 combined.
BIM and Information Technology | Mar 11, 2024
BIM at LOD400: Why Level of Development 400 matters for design and virtual construction
As construction projects grow more complex, producing a building information model at Level of Development 400 (LOD400) can accelerate schedules, increase savings, and reduce risk, writes Stephen E. Blumenbaum, PE, SE, Walter P Moore's Director of Construction Engineering.