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, 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

SEE FULL LIST

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

SEE FULL LIST

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

International design firm Cuningham Group Architecture, P.A. (Cuningham Group) has announced the arrival of Lee Brennan, AIA, as Principal and Leader of its new Healthcare studio. Brennan comes to Cuningham Group with over 30 years of professional experience, 22 of those years in healthcare, encompassing all aspects of project delivery, from strategic planning and programming through design and construction. The firm’s new Healthcare studio will enhance Cuningham Group’s expertise in leisure and entertainment, education, mixed-use/housing and workplace environments.

| Jan 31, 2011

HDR Architecture Releases Evidence-based Design Videos

As a follow-up to its book Evidence-based Design for Healthcare Facilities, HDR Architecture, Inc. has released three video case studies that highlight evidence-based design principles in action.

| Jan 31, 2011

CISCA releases White Paper on Acoustics in Healthcare Environments

The Ceilings & Interior Systems Construction Association (CISCA) has released an extensive white paper “Acoustics in Healthcare Environments” for architects, interior designers, and other design professionals who work to improve healthcare settings for all users. This white paper serves as a comprehensive introduction to the acoustical issues commonly confronted on healthcare projects and howbest to address those.

| Jan 28, 2011

Firestone Building Products Unveils FirestoneRoof Mobile Web App

Firestone Building Products Company unveiled FirestoneRoof, a first-of-its-kind free mobile web app. The FirestoneRoof mobile web app enables customers to instantly connect with Firestone commercial roofing experts and is designed to make it easier for building owners, facility managers, roofing consultants and others charged with maintaining commercial roofing systems to get the support they need, when they need it.

| Jan 27, 2011

Perkins Eastman's report on senior housing signals a changing market

Top international design and architecture firm Perkins Eastman is pleased to announce that the Perkins Eastman Research Collaborative recently completed the “Design for Aging Review 10 Insights and Innovations: The State of Senior Housing” study for the American Institute of Architects (AIA). The results of the comprehensive study reflect the changing demands and emerging concepts that are re-shaping today’s senior living industry.

| Jan 26, 2011

Modern feature complements historic courthouse rehab

| Jan 25, 2011

Bloomberg launches NYC Urban Tech Innovation Center

To promote the development and commercialization of green building technologies in New York City, Mayor Michael R. Bloomberg has launched the NYC Urban Technology Innovation Center. This initiative will connect academic institutions conducting underlying research, companies creating the associated products, and building owners who will use those technologies.

| Jan 25, 2011

Top 10 rules of green project finance

Since the bottom fell out of the economy, finding investors and financial institutions willing to fund building projects—sustainable or otherwise—has been close to impossible. Real estate finance prognosticators, however, indicate that 2011 will be a year to buy back into the real estate market.

| Jan 25, 2011

Chicago invented the skyscraper; can it pioneer sustainable-energy strategies as well?

Chicago’s skyline has always been a source of pride. And while few new buildings are currently going up, building owners have developed a plan to capitalize on the latest advances: Smart-grid technologies that will convert the city’s iconic skyline into what backers call a “virtual green generator” by retrofitting high-rise buildings and the existing electrical grid to a new hyper-connected intelligent-communications backbone.

| Jan 25, 2011

AIA reports: Hotels, retail to lead U.S. construction recovery

U.S. nonresidential construction activity will decline this year but recover in 2012, led by hotel and retail sectors, according to a twice-yearly forecast by the American Institute of Architects. Overall nonresidential construction spending is expected to fall by 2% this year before rising by 5% in 2012, adjusted for inflation. The projected decline marks a deteriorating outlook compared to the prior survey in July 2010, when a 2011 recovery was expected.

Currently Reading

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

TOP ENGINEERING FIRMS

TOP ENGINEERING/ARCHITECTURE FIRMS

Tags

| Jan 31, 2011

| Jan 31, 2011

| Jan 31, 2011

| Jan 28, 2011

| Jan 27, 2011

| Jan 26, 2011

| Jan 25, 2011

| Jan 25, 2011

| Jan 25, 2011

| Jan 25, 2011

Most Popular Content

Magazine Subscription

Get our Newsletters

Follow BD+C: