Government Report: Steady cashflow keeps the government sector strong

August 11, 2010

Construction spending for government buildings—excluding housing, education, and healthcare—expanded 14% in the fiscal year ending in June 2007. This is acceleration from the 4% growth in the prior fiscal year.

Spending for public safety buildings has been growing the fastest, but is projected to grow somewhat slower in the coming months. Still, spending will remain significantly higher than project cost inflation.

Government buildings are constructed when the cash for contract or bond payments is available, and cash is currently abundant. The 2006-07 fiscal year began with aggregate state government budget reserves equal to more than 9% of annual expenditures, nearly equal to the 10%-plus peak five years earlier. Budget reserves had fallen to 2-3% of spending just past the end of the last recession.

Sub-par economic growth over the last year will drop budget reserves in many states, but not by enough to cancel or delay projects already started or committed.

Top 20 government design firms
(2006 billings in $ millions)


Firm Billings
Source: 2007 Giants 300 survey
Note: This ranking is based on firms that made the Giants 300 list.


1. Jacobs Engineering Group 212.51
2. URS Corp. 152.00
3. CH2M HILL 135.35
4. HOK 126.90
5. Carter & Burgess 109.18
6. Parsons Brinckerhoff 94.87
7. HNTB Architecture 76.26
8. DMJM H&N 74.75
9. Burns & McDonnell 70.77
10. STV Group 57.60
11. Merrick & Co. 40.18
12. CUH2A 37.64
13. Hayes, Seay, Mattern & Mattern 30.63
14. Heery International 27.87
15. Mead & Hunt 27.07
16. Teng Affiliated Cos. 25.93
17. HDR Architecture 24.23
18. KlingStubbins 24.18
19. Baker and Associates 22.90
20. Syska Hennessy Group 21.72

Top 20 government contractors
(2006 revenue in $ millions)


Firm Revenue
Source: 2007 Giants 300 survey
Note: This ranking is based on firms that made the Giants 300 list.


1. Fluor Corp. 1,754.82
2. Clark Group 1,527.04
3. The Turner Corp. 1,489.32
4. Perini Corp. 813.39
5. PCL Construction Enterprises 774.30
6. Jacobs Engineering Group 680.32
7. Balfour Beatty Construction 611.55
8. Hoffman Construction 510.57
9. Hensel Phelps Construction 468.81
10. Gilbane Building Co. 370.77
11. Skanska USA Building 342.00
12. Hunt Building Co. 312.26
13. M. A. Mortenson Co. 309.39
14. JE Dunn Construction Group 256.20
15. Dick Corp. 228.90
16. The Whiting-Turner Contracting Co. 223.93
17. Manhattan Construction 204.15
18. Walbridge Aldinger 198.00
19. Bovis Lend Lease 185.56
20. Coakley & Williams Construction 184.11

         
 

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