flexiblefullpage

HORIZONTV FEATURING BD+C: WATCH EPISODES ON DEMAND AT HORIZONTV

Menu View Full Menu
Subscribe Here
billboard
interstitial1
catfish1
Currently Reading

Mergers and acquisitions transform engineering sector [2013 Giants 300 Report]

Mergers and acquisitions transform engineering sector [2013 Giants 300 Report]

Merger and acquisition deals by MEP, commissioning, structural, and specialty engineering firms were up 14% nationwide in 2012 compared with 2011.

By Julie Higginbotham, Senior Editor | July 15, 2013
Planning for extreme weather events is an increasingly important aspect of engineering work. In a large-scale example, structural engineer Walter P Moore collaborated with architect Populous, wind engineer RWDI, and Hunt Construction to create a retractable-roof park for the Miami Marlins. During storms, roof panels can be positioned in a not-quite-closed manner to reduce the sail effect. The 36,000-seat facility meets the Miami-Dade building code, which required wind resistance of up to 146 mph. Photo: Christy Radecic
Continue Reading
Merger and acquisition deals by MEP, commissioning, structural, and specialty engineering firms were up 14% nationwide in 2012 compared with 2011, according to consulting firm Morrissey Goodale (morrisseygoodale.com). Since the beginning of 2013, the consultant has reported more than 60 M&A transactions involving North American engineering firms, including interstate, intrastate, and international deals.
 
As economic recovery generates new business, engineering and engineering/architecture firms continue to seek M&A targets that offer an expanded employee base, a geographic springboard, or simply a broader mix of skills. A typical example: the November acquisition of Energy Ace, a Georgia-based commissioning and sustainability specialist, to beef up the green expertise of global engineering, architecture, design-build, surveying, and geospatial solutions firm Merrick & Company.
 
During the recession, multiple architecture and architecture/engineering firms also sought to broaden their client appeal by going on an engineering talent hunt. A third of AIA member firms now identify as “multidisciplinary,” including engineering services, compared with about 25% a decade ago, according to Morrissey Goodale.
 
SSOE Group is among the companies capitalizing on the volatile business climate. “We closed on three M&A transactions in 2012, so our emphasis in 2013 is on integration and realizing the synergies from the combined companies,” says CEO Tony Damon, AIA, LEED AP. “Our merger with Evergreen EDC in December should be transformative, allowing us to diversify our business and leverage our combined resources for new clients, in new markets and geographic locations.”
 

TOP ENGINEERING FIRMS

 
2012 Total Revenue ($)
1 Fluor $221,231,200
2 Arup $149,738,587
3 Affiliated Engineers $105,503,000
4 WSP USA $105,362,352
5 KPFF Consulting Engineers $91,000,000
6 Syska Hennessy Group $82,097,502
7 Henderson Engineers $63,485,775
8 Smith Seckman Reid $52,919,312
9 KJWW Engineering Consultants $51,092,154
10 Vanderweil Engineers $50,552,200

TOP ENGINEERING/ARCHITECTURE FIRMS

 
2012 Total Revenue ($)
1 Jacobs Engineering Group $2,715,210,000
2 AECOM Technology Corp. $1,610,390,000
3 Parsons Brinckerhoff $337,900,000
4 URS Corp. $314,266,757
5 Buro Happold Consulting Engineers $194,220,000
6 Burns & McDonnell $160,645,000
7 Thornton Tomasetti $124,575,393
8 Science Applications International Corp. $120,249,686
9 Merrick & Co. $103,998,000
10 SSOE Group $103,708,918
Damon credits a rebound in business from manufacturing and automotive clients, especially in the Southeast, for some of SSOE’s bullish attitude. Other hot prospects identified by Damon include the semiconductor industry in the West, and international markets, especially China, India, Mexico, and Brazil.
 
Steven Strauss, President of Glumac, reports good business from domestic micorelectronics companies and from Chinese clients, some of whom are developing entire new cities. Strauss has also seen an uptick in medical office buildings, mission critical, hospitality, and mixed-use commercial. “Projects that have been on the back burner are now re-emerging, and developer clients are more able to get financing through banks and institutional investors.”
 
For Bergmann Associates, the retail sector has been a bright spot. “The growth has been primarily with corporate retailers—big boxes, grocery stores, banks, restaurants—in New England and the Mid-Atlantic region,” says CEO Thomas C. Mitchell, PE. Property development companies in the East and Midwest have also been hiring the firm, and Bergmann has won new clients in science and technology, replacing some who have stopped building. The company recently added personnel in Michigan, Ohio, and the Carolinas.
 
In the West, Spectrum Engineers is getting a steady flow of work from retail, mission critical, and private commercial development, as well as some government clients. However, K-12 is “slow,” according to President and Principal Electrical Engineer Dave Wesemann, PE, LEED AP, ATD.
 
Considerable hustle is still required, even as the market improves. “Business continues to be challenging overall in the Southeast,” says Mark A. Gelfo, PE, LEED AP BD+C, LEED AP O+M, CxA, EMP, Director of Business Development and Sustainability at TLC Engineering for Architecture. “Competition remains high, and clients want more and more for less and less. During the past few years we have made significant initiatives in energy services, federal—though that market’s definitely on a downward track—mission critical, and hospitality, while maintaining our historically major markets such as healthcare, commercial office, and higher education.”
 
Like many engineering pros, Gelfo expects energy services—from commissioning, auditing, and retro-Cx to high-performance MEP design—to generate significant revenues for the foreseeable future. Spectrum’s Wesemann says advances in green technology, including LED lighting and variable-refrigerant flow HVAC, are persuading some clients to seek a more integrated delivery model to take advantage of all the potential savings.
 
According to Kenneth G. Diehl, Jr., PE, Senior Vice President at Smith Seckman Reid, building owners increasingly understand the high long-term ROI of green upgrades—a trend that can only be good news for engineers. “The biggest mover in this area is currently existing buildings that are using retrocommissioning to significantly lower utility costs,” he says. “The market is continuing to move toward a model that supports high-performance building operations.”
 

Read BD+C's full Giants 300 Report

Tags

Related Stories

SSOE Group is striving for a more diverse workforce
Engineers | Feb 20, 2024

An engineering firm traces its DEI journey

Top-to-bottom buy-in has been a key factor in SSOE Group’s efforts to become more diverse, equitable, and inclusive in its hiring, mentoring, and benefits.

Construction method featuring LEGO-like bricks wins global innovation award
Building Tech | Feb 20, 2024

Construction method featuring LEGO-like bricks wins global innovation award

A new construction method featuring LEGO-like bricks made from a renewable composite material took first place for building innovations at the 2024 JEC Composites Innovation Awards in Paris, France.

AISC, AIA release second part of design assist guidelines for the structural steel industry
Codes and Standards | Feb 20, 2024

AISC, AIA release second part of design assist guidelines for the structural steel industry

The American Institute of Steel Construction and AIA Contract Documents have released the second part of a document intended to provide guidance for three common collaboration strategies.

The 656-unit Academe at 198 is the newest addition to UC Law’s Academic Village. Photo: Bruce Damonte, courtesy Perkins&Will
Student Housing | Feb 19, 2024

UC Law San Francisco’s newest building provides student housing at below-market rental rates

Located in San Francisco’s Tenderloin and Civic Center neighborhoods, UC Law SF’s newest building helps address the city’s housing crisis by providing student housing at below-market rental rates. The $282 million, 365,000-sf facility at 198 McAllister Street enables students to live on campus while also helping to regenerate the neighborhood.

UL Solutions launches indoor environmental quality verification designation for building construction projects. Image by 652234 from Pixabay
MFPRO+ News | Feb 15, 2024

UL Solutions launches indoor environmental quality verification designation for building construction projects

UL Solutions recently launched UL Verified Healthy Building Mark for New Construction, an indoor environmental quality verification designation for building construction projects.

Nine states pledge to transition to heat pumps for residential HVAC and water heating. Image by HarmvdB from Pixabay
MFPRO+ News | Feb 15, 2024

Nine states pledge to transition to heat pumps for residential HVAC and water heating

Nine states have signed a joint agreement to accelerate the transition to residential building electrification by significantly expanding heat pump sales to meet heating, cooling, and water heating demand. The Memorandum of Understanding was signed by directors of environmental agencies from California, Colorado, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, and Rhode Island. 

Oregon, California, Maine among states enacting policies to spur construction of missing middle housing. Image by Peggy und Marco Lachmann-Anke from Pixabay
MFPRO+ News | Feb 15, 2024

Oregon, California, Maine among states enacting policies to spur construction of missing middle housing

Although the number of new apartment building units recently reached the highest point in nearly 50 years, construction of duplexes, triplexes, and other buildings of from two to nine units made up just 1% of new housing units built in 2022. A few states have recently enacted new laws to spur more construction of these missing middle housing options.

FEMA issues guidance on funding for net zero buildings. Image by 652234 from Pixabay
Green | Feb 15, 2024

FEMA issues guidance on funding for net zero buildings

The Federal Emergency Management Agency (FEMA) recently unveiled new guidance on additional assistance funding for net zero buildings. The funding is available for implementing net-zero energy projects with a tie to disaster recovery or mitigation.

Aerial rendering of new pediatric hospital and campus. Image:
Hospital Design Trends | Feb 14, 2024

Plans for a massive research hospital in Dallas anticipates need for child healthcare

Children’s Health and the UT Southwestern Medical Center have unveiled their plans for a new $5 billion pediatric health campus and research hospital on more than 33 acres within Dallas’ Southwestern Medical District. 

PierLuca Maffey, new design head at Carrier Johnson + Culture
Architects | Feb 13, 2024

Pierluca Maffey joins Carrier Johnson + Culture as new Firmwide Head of Design

Carrier Johnson + Culture (CJ+C) has hired Pierluca “Luca” Maffey, International Assoc. AIA, as the firm's new Firmwide Head of Design and Design Principal.

boombox1
boombox2

Top Articles

native1

More In Category

Healthcare Facilities

Watch on-demand: Key Trends in the Healthcare Facilities Market for 2024-2025

Join the Building Design+Construction editorial team for this on-demand webinar on key trends, innovations, and opportunities in the $65 billion U.S. healthcare buildings market. A panel of healthcare design and construction experts present their latest projects, trends, innovations, opportunities, and data/research on key healthcare facilities sub-sectors. A 2024-2025 U.S. healthcare facilities market outlook is also presented.

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021