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
| Dec 6, 2011
Construction industry leaders gather for forum on diversity
Declared a “groundbreaking” event for the industry, Gilbane’s First Annual National Partners Council Forum addressed diversity and inclusion as well as building partnerships with minority, veteran, and women-owned businesses.
| Dec 6, 2011
Mortenson Construction completes Elk Wind Project in Iowa
By the end of 2011, Mortenson will have built 17 wind projects in the state generating a total of 1894 megawatts of renewable power.
| Dec 6, 2011
?ThyssenKrupp acquires Sterling Elevators Services
The acquisition of Sterling Elevator Services Corporation is the third acquisition completed by ThyssenKrupp Elevator AG in the last three months in North America.
| Dec 6, 2011
Vivenzio named vice president of building performance practice at Thornton Tomasetti’s New York Office
Vivenzio, a licensed architect in New York and New Jersey, has more than 28 years of experience in architectural project management, construction administration, building diagnostic services and forensic investigation.
| Dec 6, 2011
New office building features largest solar panel system in New Orleans
Woodward Design+Build celebrates grand opening of new green headquarters in Central City.
| Dec 5, 2011
New York and San Francisco receive World Green Building Council's Government Leadership Awards
USGBC commends two U.S. cities for their innovation in green building leadership.
| Dec 5, 2011
Summit Design+Build begins renovation of Chicago’s Esquire Theatre
The 33,000 square foot building will undergo an extensive structural remodel and core & shell build-out changing the building’s use from a movie theater to a high-end retail center.
| Dec 5, 2011
Fraser Brown MacKenna wins Green Gown Award
Working closely with staff at Queen Mary University of London, MEP Engineers Mott MacDonald, Cost Consultants Burnley Wilson Fish and main contractor Charter Construction, we developed a three-fold solution for the sustainable retrofit of the building.
| Dec 5, 2011
RJM Construction begins building Nova Classical Academy in St. Paul
As the general contractor, RJM is constructing the 94,000-sf building that will consolidate the St. Paul school’s two other locations.
| Dec 5, 2011
Gables Residential brings mixed-use building to Houston's Tanglewood area
The design integrates a detailed brick and masonry facade, acknowledging the soft pastel color palette of the surrounding Mediterranean heritage of Tanglewood.