Despite the ongoing labor shortage, the commercial construction industry is booming. Engineering News-Record recently published “ENR 2019 Top 400 Contractors,” which showed that approximately 69 percent of companies had experienced positive revenue growth since 2017. Furthermore, the 373 companies that submitted surveys posted a combined revenue of $405 billion in contracting revenue for the 2018 fiscal year. This figure accounted for an 8 percent increase over the previous year, a new record.
In this brief article, a Tallahassee construction lawyer from Cotney Construction Law will take a close look at the most successful contracting businesses on ENR’s survey and discuss the factors behind their unprecedented growth. These industry giants are leading the charge for positive gains in 2019, and smaller contracting companies should take note of what these successful enterprises are doing to procure contracts, boost profits, and catalyze growth. As your firm continues to grow, consult our Tallahassee construction lawyers for all of your legal needs including license defense, bond law, lien law, OSHA defense, dispute resolution, and more.
Last year, Bechtel posted $16.8 billion in revenue. As the top ranking construction company on ENR’s list, this privately owned company is taking on a variety of high-profile projects to keep their earnings in the clouds. For example, they’re working on Cheniere Energy’s $11 billion Liquefaction project in Corpus Christi, Texas, as well as Tellurian’s $27.5 billion Driftwood LNG export terminal in Lake Charles, Louisiana. This doesn’t come as much of a surprise. Bechtel has spent the last 21 years at the top of ENR’s list and is the eleventh largest privately owned American company according to Forbes.
Skanska USA held down the seventh position on ENR’s list with $7.5 billion in revenue. Although they technically dropped one ranking, they are currently engaged in a number of high-profile projects like the $60 million LaGuardia Airport redevelopment in New York City. Skanska is positioning itself for the future by focusing on personal protective equipment (PPE) for increased worker safety. The company outfits its employees in Kask helmets that make their project sites seem futuristic compared to others.
PCL Construction Enterprises Inc.
This employee-owned construction company is using joint ventures to grow their operations. For instance, in Grand Forks, North Dakota, PCL has partnered with a local firm called Community Contractors to build a new hospital. They have also partnered with CopperTree Analytics to integrate data and energy analytics services into their processes. This should help the company become more sustainable while cutting costs.
Headquartered in Redwood City, California, DPR Construction is an employee-owned business that has embraced a unique organizational structure to climb from the fifteenth position to the tenth position on ENR’s list over the last year. DPR utilizes a shared leadership structure that replaces the traditional CEO role with a management committee. Turns out, not all growth factors take place directly on the project site.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.