Two of the biggest players in nonresidential construction are predicting a turnaround in the industry, despite the malaise in the general economy. “We feel that the construction market is moving off the bottom and finally showing signs of improvement,” says Nicholas Makes, Senior Vice President at the Turner Corporation. “We have been preparing for an upturn.”
Moreover, in its Spring 2012 edition of “Construction Economics – Market Conditions in Construction,” Gilbane Building Co. forecasts a 5.4% increase from 2011 in spending for all construction, a 6.2% increase for nonresidential buildings, and a 9.8% growth for private-sector work. However, spending also has a ways to go before reaching pre-recession levels: The predicted figure for private construction (including single-family homes) in 2012—$555 billion—is roughly 40% below the $912 billion mark for 2006.
Giants 300 construction firms are reporting that predominantly private institutional sectors, notably healthcare, are still seeing activity. “The intensity for jobs is great, as construction activity declines in state and local government work,” notes Dale Connor, Managing Director, Project Management and Construction (Americas) with Lend Lease. “Capital availability remains tight but is improving, and markets like healthcare and life sciences remain active.”
SCROLL DOWN FOR GIANTS 300 CONTRACTOR & CM AGENT + PM FIRM RANKINGS
Contractors are also seeing opportunities in markets outside the United States. Turner recently opened offices in Toronto and Vancouver and is partnering with Edmonton-based Clark Builders. In Mexico, the firm is currently working on several data centers as well as on a 51-story Latin America headquarters tower for Spanish banking group BBVA. Turner also opened new offices in Vietnam, Malaysia, and Turkey.
Rising costs, fewer skilled laborers
One concern contractors are bracing for is the rising cost of certain materials. “Metals are up due to increased world demand, which is affecting the MEP trades,” says Lend Lease’s Connor. Shortages of aluminum could affect the cost of building envelope materials, and rising oil prices are impacting the costs of building products such as drywall and glass.
Gilbane reports that concrete and steel are both experiencing cost increases ranging between 1.5% and 2.5% over the year. The overall Producer Price Index for February 2012 showed costs for construction materials up 4.4% in the previous 12 months.
Moreover, the Gilbane report says, while construction unemployment has dropped from 25% in February 2010 to 17% in March 2012, the actual number of construction jobs gained has remained flat, due to laborers actually dropping out of the workforce. The Gilbane study forecasts that when work volume begins to increase, labor costs will go up due to a lack of skilled workers.
Increasing efficiencies
Contractors and CM firms are reporting positive benefits from the use of BIM and lean building practices. At Barton Malow, use of the integrated project delivery model continues to expand in an effort to improve project performance. “Our use of BIM and lean construction principles and our corporate culture of collaboration have made IPD a natural extension of our services,” says Senior Vice President Alex Ivanikiw, AIA, LEED AP.
Ivanikiw says that his firm has been testing technologies for practical job site applications at its new Envisioning Center, in Southfield, Mich. “The Envisioning Center is connected to a full-scale gang box in our atrium, simulating how the use of technologies would apply on the job site and how these technologies—hardware and software—need to be adapted for use in the field,” says Ivanikiw.
Turner says it is also focused on improving construction efficiencies. “With the adoption and development of BIM tools and processes, and with widespread implementation of lean construction practices and IPD methods, Turner is performing the same work it has always performed faster and more efficiently,” says Makes.
While construction volume is expected to pick up modestly in the coming year, “The cost of buildings still lags normal labor and material inflation cost indices,” notes the Gilbane report. “It should continue to do so for some time to come, but the gap is narrowing.” +
CONTRACTORS
Rank | Company | 2011 Total Revenue ($) |
1 | Turner Corporation, The | 8,014,660,000 |
2 | Whiting-Turner Contracting Co., The | 3,826,610,062 |
3 | PCL Construction Enterprises | 3,611,192,729 |
4 | Balfour Beatty US | 3,428,962,433 |
5 | Clark Group | 3,380,129,779 |
6 | Skanska USA | 3,286,508,000 |
7 | Gilbane Building Co. | 3,028,728,000 |
8 | Mortenson | 2,456,960,000 |
9 | Tutor Perini Corp. | 2,360,916,000 |
10 | Structure Tone | 2,347,400,000 |
11 | Hensel Phelps Construction | 2,229,390,000 |
12 | McCarthy Holdings | 2,096,000,000 |
13 | DPR Construction | 2,000,332,304 |
14 | Lend Lease | 1,841,990,112 |
15 | Holder Construction | 1,766,000,000 |
16 | Hunt Construction Group | 1,750,000,000 |
17 | JE Dunn Construction | 1,716,858,016 |
18 | Jacobs | 1,644,500,000 |
19 | Walsh Group, The | 1,612,052,187 |
20 | Brasfield & Gorrie | 1,492,346,677 |
21 | Suffolk Construction | 1,425,000,000 |
22 | Barton Malow | 1,256,757,360 |
23 | Swinerton | 1,079,236,051 |
24 | Pepper Construction Group | 1,050,711,000 |
25 | Flintco | 1,003,400,000 |
26 | HITT Contracting | 976,397,916 |
27 | Yates Companies, The | 910,200,000 |
28 | Weitz Company, The | 881,339,956 |
29 | Walbridge | 867,900,000 |
30 | Clayco | 820,000,000 |
31 | Webcor Builders | 797,040,000 |
32 | Austin Industries | 776,534,824 |
33 | Ryan Companies US | 697,549,225 |
34 | CORE Construction | 671,535,195 |
35 | Shawmut Design and Construction | 662,800,000 |
36 | Power Construction | 654,000,000 |
37 | Sundt Construction | 644,029,962 |
38 | Boldt Co., The | 632,115,183 |
39 | Robins & Morton | 623,293,000 |
40 | BL Harbert International | 617,300,000 |
41 | James G. Davis Construction Corp. | 603,020,000 |
42 | Layton Construction | 601,200,000 |
43 | Haskell | 577,518,226 |
44 | McShane Companies, The | 562,442,191 |
45 | Messer Construction | 550,808,643 |
46 | Gray Construction | 514,039,421 |
47 | Hoar Construction | 503,668,000 |
48 | Kraus-Anderson Construction | 497,180,000 |
49 | Choate Construction | 482,410,138 |
50 | Hardin Construction | 477,879,091 |
51 | McGough | 477,000,000 |
52 | EMJ Corp. | 475,575,404 |
53 | O’Neil Industries / W.E. O’Neil | 458,290,000 |
54 | Bernards | 438,045,000 |
55 | Manhattan Construction Group | 423,285,000 |
56 | Kitchell | 407,469,000 |
57 | C.W. Driver | 401,952,720 |
58 | W. M. Jordan Co. | 377,529,253 |
59 | Linbeck Group | 324,000,000 |
60 | Rodgers Builders | 313,392,000 |
61 | S. M. Wilson & Co. | 300,581,922 |
62 | Paric Corp. | 285,000,000 |
63 | HBE Corp. | 279,200,000 |
64 | E.W. Howell | 266,485,000 |
65 | Hunt Companies | 263,902,629 |
66 | Clancy & Theys Construction | 253,468,947 |
67 | Hill & Wilkinson General Contractors | 253,101,000 |
68 | Coakley & Williams Construction | 236,521,534 |
69 | Weis Builders | 219,006,000 |
70 | Alberici Corp. | 218,453,766 |
71 | Doster Construction | 210,187,139 |
72 | Batson-Cook | 208,907,584 |
73 | Harkins Builders | 201,000,000 |
74 | KBE Building Corp. | 187,822,953 |
75 | Heery International | 134,514,000 |
76 | New South Construction | 187,706,000 |
77 | Consigli Construction | 174,112,428 |
78 | Bette Companies | 144,000,000 |
79 | CG Schmidt | 142,265,000 |
80 | Absher Construction | 130,129,012 |
81 | Atkins North America | 115,430,980 |
82 | James McHugh Construction | 102,622,708 |
83 | Bomel Construction | 99,930,000 |
84 | IMC Construction | 93,500,000 |
85 | Wight & Co. | 77,807,100 |
86 | URS Corp. | 76,986,048 |
87 | Roche Constructors | 75,272,999 |
88 | Summit Contractors Group | 64,000,000 |
89 | Stalco Construction | 58,800,000 |
90 | Allen & Shariff Corp. | 38,323,273 |
91 | Jones Lang LaSalle | 20,000,000 |
92 | Epstein | 16,860,278 |
93 | Eaton Energy Solutions | 13,773,148 |
94 | Zak Companies | 9,190,352 |
CM AGENT + PM FIRMS
Rank | Company | 2011 Total Revenue ($) |
1 | Hoffman Corp. | 1,880,463,527 |
2 | Gilbane Building Co. | 1,350,248,000 |
3 | Manhattan Construction Group | 723,987,000 |
4 | Consigli Construction | 459,028,178 |
5 | Hill International | 350,000,000 |
6 | Jones Lang LaSalle | 301,000,000 |
7 | URS Corp. | 279,147,870 |
8 | JE Dunn Construction | 207,481,662 |
9 | Jacobs | 182,820,000 |
10 | Balfour Beatty US | 125,078,599 |
11 | Barton Malow | 94,594,640 |
12 | Structure Tone | 80,000,000 |
13 | Bernards | 79,655,000 |
14 | Robins & Morton | 75,380,000 |
15 | Lend Lease | 72,824,093 |
16 | Doster Construction | 20,682,865 |
17 | Flintco | 18,100,000 |
18 | Weitz Company, The | 18,060,000 |
19 | Allen & Shariff Corp. | 17,663,909 |
20 | Hoar Construction | 14,472,000 |
21 | McCarthy Holdings | 12,000,000 |
22 | Mortenson Construction | 10,640,000 |
23 | Swinerton | 10,528,949 |
24 | Power Construction | 9,000,000 |
25 | Yates Companies, The | 7,900,000 |
26 | Stalco Construction | 4,820,000 |
27 | Ryan Companies US | 4,587,011 |
28 | Brasfield & Gorrie | 4,248,485 |
29 | Kraus-Anderson Construction | 4,120,000 |
30 | Sundt Construction | 3,634,695 |
31 | S. M. Wilson & Co. | 3,507,170 |
32 | Pepper Construction Group | 3,028,000 |
33 | E.W. Howell Co. | 2,450,000 |
34 | Austin Industries | 2,383,128 |
35 | EMJ Corp. | 2,114,155 |
36 | Bette Companies, The | 2,000,000 |
37 | Eaton Energy Solutions | 1,931,409 |
38 | Hensel Phelps Construction | 1,500,000 |
39 | Haskell | 1,249,381 |
40 | Heery International | 1,011,000 |
41 | Epstein | 898,431 |
42 | Alberici Corp. | 806,353 |
43 | Gray Construction | 535,116 |
44 | IMC Construction | 500,000 |
45 | Rodgers Builders | 321,000 |
46 | Wight & Co. | 318,400 |
Related Stories
Sponsored | Webinar | Jan 27, 2022
On-demand webinar: Open plenum design with baffles
With their vast, airy aesthetics, open-plan interiors offer a feel that can inspire and support occupants. But they can also create acoustical challenges that negate the effects of all that beauty. Baffles are an ideal ceiling design solution that address both aesthetics and performance.
Architects | Jan 27, 2022
Gensler’s latest design forecast is also a call to action
The firm urges the AEC industry to take the lead in creating a fairer, cleaner built environment that faces many obstacles.
Architects | Jan 26, 2022
HMC Architects Welcomes New Director of Sustainability
The Sacramento studio of leading national architecture and design firm HMC Architects has announced the appointment of new Director of Sustainability Jennifer Wehling, who joined in December
Market Data | Jan 26, 2022
2022 construction forecast: Healthcare, retail, industrial sectors to lead ‘healthy rebound’ for nonresidential construction
A panel of construction industry economists forecasts 5.4 percent growth for the nonresidential building sector in 2022, and a 6.1 percent bump in 2023.
Sponsored | Steel Buildings | Jan 25, 2022
Structural Game Changer: Winning solution for curved-wall gymnasium design
Sponsored | Steel Buildings | Jan 25, 2022
Multifamily + Hospitality: Benefits of building in long-span composite floor systems
Long-span composite floor systems provide unique advantages in the construction of multi-family and hospitality facilities. This introductory course explains what composite deck is, how it works, what typical composite deck profiles look like and provides guidelines for using composite floor systems. This is a nano unit course.
Sponsored | Reconstruction & Renovation | Jan 25, 2022
Concrete buildings: Effective solutions for restorations and major repairs
Architectural concrete as we know it today was invented in the 19th century. It reached new heights in the U.S. after World War II when mid-century modernism was in vogue, following in the footsteps of a European aesthetic that expressed structure and permanent surfaces through this exposed material. Concrete was treated as a monolithic miracle, waterproof and structurally and visually versatile.
Urban Planning | Jan 25, 2022
Retooling innovation districts for medium-sized cities
This type of development isn’t just about innovation or lab space; and it’s not just universities or research institutions that are driving this change.
Sponsored | Resiliency | Jan 24, 2022
Norshield Products Fortify Critical NYC Infrastructure
New York City has two very large buildings dedicated to answering the 911 calls of its five boroughs. With more than 11 million emergency calls annually, it makes perfect sense. The second of these buildings, the Public Safety Answering Center II (PSAC II) is located on a nine-acre parcel of land in the Bronx. It’s an imposing 450,000 square-foot structure—a 240-foot-wide by 240-foot-tall cube. The gleaming aluminum cube risesthe equivalent of 24 stories from behind a grassy berm, projecting the unlikely impression that it might actually be floating. Like most visually striking structures, the building has drawn as much scorn as it has admiration.
Sponsored | Resiliency | Jan 24, 2022
Blast Hazard Mitigation: Building Openings for Greater Safety and Security