Two of the nonresidential building industry’s leading engineering firms have joined forces to leverage their similar sizes and market strategies.
KJWW Engineering, based in Rock Island, Ill., and TTG Engineers, based in Pasadena, Calif., will continue to operate under their own banners, but within a newly created holding company with common management.
Ranked 11th and 14th, respectively, on BD+C’s 2014 Engineering Giants list, the firms’ combined revenues last year would have elevated them to No. 4.
The merger unites two companies with a combined 860 employees working in 25 national and five international locations. “The merger gives TTG and KJWW a larger presence throughout the U.S. and strengthens our collective dominance in the healthcare, higher education, government, entertainment, industrial, and transportation markets,” said Zareh Astrouian, PE, SE, president of TTG. Paul VanDuyne, PE, KJWW’s president, added that the merger “allows us to build on those strengths with greater geographic mobility.”
In an interview with BD+C, VanDuyne—who will be CEO of the holding company, with Astrouian its chairman— said the two firms would spend the next 15 months integrating their operational infrastructure, such as accounting, IT, etc. Over that period, the companies will keep their engineering teams intact, while integrating similar practices. VanDuyne was quick to note that the merger is not a prelude to staff reductions. “Human capital is at such a premium right now, and we would be very happy to go through this process without losing a single person.”
VanDuyne believed this merger would allow both companies to serve national end-user clients more effectively. TTG should gain from KJWW’s strengths in such areas as medical equipment planning and architectural lighting, while KJWW should benefit from TTG’s expertise in the entertainment sector. “We feel this is a great opportunity to take a look at a brand new organization. That’s a little bit extraordinary for two $50 million companies,” he said.
The firms’ executives have been discussing this merger for about a year, said VanDuyne. “It started with a phone call about getting together. We met at [KJWW’s] offices in Chicago, and it went on from there.”
KJWW and TTG announced their merger less than a month after Thornton Tomasetti merged with Weidlinger Associates. While VanDuyne didn’t think these events necessarily presaged more consolidation among engineering companies, he did note that “scale” is becoming more important for firms to be relevant to clients in such areas as BIM and sustainability.
It hasn’t been determined whether the firms would eventually operate out of a single headquarters. That seems unlikely, at least in the near future, especially when Van Duyne said “I don’t think this is the last time you’re going to hear from us about expanding across the country.”
Related Stories
Multifamily Housing | Jul 28, 2022
GM working to make EV charging accessible to multifamily residents
General Motors, envisioning a future where electric vehicles will be commonplace, is working to boost charging infrastructure for those who live in multifamily residences.
Urban Planning | Jul 28, 2022
A former military base becomes a substation with public amenities
On the site of a former military base in the Hunters Point neighborhood of San Francisco, a new three-story substation will house critical electrical infrastructure to replace an existing substation across the street.
Hotel Facilities | Jul 28, 2022
As travel returns, U.S. hotel construction pipeline growth follows
According to the recently released United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the total U.S. construction pipeline stands at 5,220 projects/621,268 rooms at the close of 2022’s second quarter, up 9% Year-Over-Year (YOY) by projects and 4% YOY by rooms.
Codes and Standards | Jul 27, 2022
Biden administration proposes drastic flood insurance reform
The Biden administration’s proposed major overhaul to the National Flood Insurance Program, or NFIP, would drastically alter how Americans protect homes and businesses against flooding.
Concrete | Jul 26, 2022
Consortium to set standards and create markets for low-carbon concrete
A consortium of construction firms, property developers, and building engineers have pledged to drive down the carbon emissions of concrete.
Green | Jul 26, 2022
Climate tech startup BlocPower looks to electrify, decarbonize the nation's buildings
The New York-based climate technology company electrifies and decarbonizes buildings—more than 1,200 of them so far.
Education Facilities | Jul 26, 2022
Malibu High School gets a new building that balances environment with education
In Malibu, Calif., a city known for beaches, surf, and sun, HMC Architects wanted to give Malibu High School a new building that harmonizes environment and education.
| Jul 26, 2022
Better design with a “brain break”
During the design process, there aren’t necessarily opportunities to implement “brain breaks,” brief moments to take a purposeful pause from the task at hand and refocus before returning to work.
Building Team | Jul 25, 2022
First Ismaili Center in the U.S. combines Islamic design with Texas influences
Construction has begun on the first Ismaili Center in the U.S. in Houston.
Codes and Standards | Jul 22, 2022
Office developers aim for zero carbon without offsets
As companies reassess their office needs in the wake of the pandemic, a new arms race to deliver net zero carbon space without the need for offsets is taking place in London, according to a recent Bloomberg report.