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
| Nov 12, 2014
Refocusing the shifted line
A recent trend in the practice of architecture that I’ve been noticing is the blurring of responsibility between design and construction coordination. I’m not sure why this trend began, but the subject is worth exploring, writes FXFOWLE's Mark Nusbaum.
| Nov 12, 2014
Designs by three finalists for new Beethoven concert hall unveiled
David Chipperfield and Valentiny are among the finalists for a new concert hall being built to commemorate Beethoven’s 250th birthday in his hometown of Bonn, Germany.
| Nov 12, 2014
Forbes: Houston is America's #1 construction hotspot
A new list of America's 20 biggest boomtowns shows Houston on top, with New York City close behind, followed by Dallas, Washington, D.C., and Los Angeles.
| Nov 11, 2014
Must see: Artist pairs up Hollywood icons with famous modern architecture
In his latest series, Federico Babina illustrated 17 iconic Hollywood personalities, from Marilyn Monroe to Michael Caine, interacting with famous 20th century homes.
| Nov 11, 2014
Renzo Piano's third building at London Bridge Quarter approved, will be built adjacent to the Shard
Renzo Piano Building Workshop has been granted planning approval for its residential building at London Bridge Quarter—a 26-story apartment tower dubbed Feilden House.
| Nov 10, 2014
5 guiding principles for solving airflow issues in open-plenum office spaces
Although architecturally appealing, exposed ceilings can create unwanted drafts and airflow problems if not engineered correctly. McGuire Engineers' Bill Stangeland offers tips for avoiding airflow issues on these projects.
| Nov 10, 2014
Clemson, Parsons architecture education programs honored for innovation, long-term impact
The architecture programs at Parsons The New School for Design and Clemson University have been selected as 2014 NCARB Award recipients for developing innovative curricula that merge practice and education.
| Nov 10, 2014
Herzog & De Meuron unveils plan for National Library of Israel
The library’s new home will be a completely new building in Jerusalem, and will combine the functions of a central research center, a venue for indoor and outdoor cultural and educational activities, and a place for digital experience.
| Nov 10, 2014
Hotel construction pipeline hits five-year high
The hotel construction pipeline hit a five-year high in the third quarter, clocking in at 3,516 projects and 443,936 rooms, Lodging Econometrics reports.
| Nov 7, 2014
Arts college uses creative financing to build 493-bed student housing
Many states have cut back funding for higher education in recent years, and securing money for new housing has been tougher than ever for many colleges and universities. A recent residence hall project in Boston involving three colleges provides an inspiring example of how necessity can spawn invention in financing strategies.