flexiblefullpage
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
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

Related Stories

Giants 400 | Sep 9, 2022

Top 20 Casino Architecture + AE Firms for 2022

JCJ Architecture, DLR Group, HBG Design, and Cuningham top the ranking of the nation's largest casino architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.

Giants 400 | Sep 9, 2022

Top 120 Hospitality Sector Architecture + AE Firms for 2022

Gensler, WATG, HKS, and JCJ Architecture top the ranking of the nation's largest hospitality facilities sector architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. Note: This ranking includes revenue for all hospitality facilities work, including casinos, hotels, and resorts. 

| Sep 9, 2022

Add sand shortage to supply chain woes

As if it wasn’t enough to have lumber, windows, doors, and metal pipe in short supply, you can add sand, which is theoretically plentiful on Earth, to the list of construction materials that can be hard to come by.

Giants 400 | Sep 8, 2022

Top 115 Hotel Sector Architecture + AE Firms for 2022

Gensler, WATG, HKS, and Stantec top the ranking of the nation's largest hotel and resort sector architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. 

Senior Living Design | Sep 8, 2022

What’s new with AQ: The top trends in active adult living

Today's 55-or-better buyers are ready to design their lives and their homes as they see fit. With so much growth on tap, builders and developers must stay apprised of trends related to home, environment, and culture of 55+ communities.

Sports and Recreational Facilities | Sep 8, 2022

Chicago Bears unveil preliminary master plan for suburban stadium district

As the 2022 NFL season kicks off, the league’s original franchise is fortifying plans to leave its landmark lakefront stadium for a multi-billion-dollar mixed-use stadium district in northwest suburban Arlington Heights.

| Sep 8, 2022

The Twin Cities’ LGBTQ health clinic moves into a new and improved facility

For more than 50 years, Family Tree Clinic has provided reproductive and sexual health services to underserved populations—from part of an old schoolhouse, until recently.

| Sep 8, 2022

U.S. construction costs expected to rise 14% year over year by close of 2022

Coldwell Banker Richard Ellis (CBRE) is forecasting a 14.1% year-on-year increase in U.S. construction costs by the close of 2022.

Giants 400 | Sep 7, 2022

Top 95 Industrial Sector Architecture + AE Firms for 2022

Ware Malcomb, Stantec, Haskell, and Macgregor Associates Architects top the ranking of the nation's largest industrial facility sector architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.

| Sep 7, 2022

Use of GBCI building performance tools rapidly expanding

More than seven billion square feet of project space is now being tracked using Green Business Certification Inc.’s (GBCI’s) Arc performance platform.

boombox1
boombox2
native1

More In Category



Urban Planning

The magic of L.A.’s Melrose Mile

Great streets are generally not initially curated or willed into being. Rather, they emerge organically from unintentional synergies of commercial, business, cultural and economic drivers. L.A.’s Melrose Avenue is a prime example. 


Curtain Wall

7 steps to investigating curtain wall leaks

It is common for significant curtain wall leakage to involve multiple variables. Therefore, a comprehensive multi-faceted investigation is required to determine the origin of leakage, according to building enclosure consultants Richard Aeck and John A. Rudisill with Rimkus. 

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