K-12 Schools Report: High schools will lead the way in the K-12 schools market
Jim Haughey, Director, Research and Analytics, Reed Construction Data
July 1, 2007
Building Design and Construction
Middle schools led the growth in K-12 construction spending in 2006, when peak enrollment was in the 8th grade. But the lead will shift to high schools, as the enrollment-bulge students will be 10th graders in the fall.
Construction spending for elementary schools, after project cost inflation, has been declining since 2001 and will continue to decline slowly. Overall K-12 school construction spending will increase 10% this year and 7% in 2008, barely faster than inflation. Tax revenue growth is still enough to support this growth rate.
The spending mix includes replacement and renovation projects, often very expensive per square foot, in cities in the Northeast and Midwest that are experiencing stable or declining enrollments, as well as low-cost classroom space expansions in southern and western cities with expanding student enrollments.
Nationally, space additions are not keeping up with enrollment growth so the unmet need for school space continues to build.
Top 20 K-12 schools design firms
(2006 billings in $ millions)
Firm
Billings
1. Heery International
79.62
2. URS Corp.
45.60
3. NTDStichler Architecture
35.38
4. STV Group
35.20
5. DLR Group
34.00
6. Fanning/Howey Associates
31.12
7. HMC Architects
30.22
8. SchenkelShultz
26.13
9. The Thomas Group, A Tetra Tech Co.
20.48
10. Skidmore, Owings & Merrill
14.70
11. Moseley Architects
13.95
12. Harvard Jolly
13.56
13. DMJM H&N
12.65
14. BRPH Cos.
11.02
15. Parsons Brinckerhoff
10.74
16. Jacobs Engineering Group
10.12
17. LPA
9.69
18. Perkins+Will
9.18
19. OWP/P
8.39
20. TMAD Taylor & Gaines
7.74
Source: 2007 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list.
Top 20 K-12 schools contractors
(2006 revenue in $ millions)
Firm
Revenue
1. Gilbane Building Co.
547.32
2. The Turner Corp.
413.70
3. Skanska USA Building
342.00
4. Adolfson & Peterson Construction
320.28
5. Hunt Construction Group
258.70
6. JE Dunn Construction Group
256.20
7. CORE Construction Group
183.55
8. McCarthy Building Cos.
166.06
9. Kraus-Anderson Construction
156.86
10. PCL Construction Enterprises
154.86
11. Heery International
139.74
12. Sundt Construction
130.68
13. McShane Construction
129.19
14. Structure Tone
114.48
15. Hensel Phelps Construction
106.55
16. Balfour Beatty Construction
105.44
17. C.W. Driver
98.88
18. The Whiting-Turner Contracting Co.
95.97
19. Bovis Lend Lease
92.78
20. The Yates Cos.
89.40
Source: 2007 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list.