Healthcare Report

Healthcare finally feeling the pinch from sluggish economy
August 11, 2010

Healthcare construction spending increased just 6% during the last 12 months but is expected to resume expanding at a 10%-plus pace in 2009.

Healthcare starts, reported by Reed Construction Data, stalled at a high level in the last six months, but are forecast to resume rising slowly by the end of the year. The 2008 stall is the combination of hospital project delays from concern about falling employment and insurance premiums and a sharp cutback in nursing home and other residential projects after a multi-year surge when the market was consolidated and privatized.

The residential healthcare market is also being restrained by more expensive construction financing. Lenders are charging a premium rate for risky building projects. The current growth in hospital construction spending does not cover project cost increases, which are higher for hospitals than other nonresidential buildings. Looking ahead, the projected pickup in construction spending will at most keep up with the growth in the overall economy.

Top 20 healthcare design firms
(2007 billings in $ millions)


Company Billings
Source: 2008 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list.

1. HOK 142.26
2. HDR Architecture 127.20
3. Perkins+Will 122.40
4. AECOM Technology Corp. 97.93
5. HKS 81.52
6. Jacobs Engineering Group 78.70
7. Stantec 68.50
8. Cannon Design 55.76
9. NBBJ 50.18
10. Hammel, Green and Abrahamson 48.83
11. PageSoutherlandPage 47.75
12. Perkins Eastman 43.86
13. BSA LifeStructures 43.31
14. Smith Seckman Reid 42.06
15. Anshen+Allen 41.90
16. URS Corp. 40.00
17. RTKL Associates 39.64
18. Gresham, Smith and Partners 39.63
19. Ellerbe Becket 37.45
20. SmithGroup 36.06

Top 20 healthcare contractors
(2007 construction value put in place in $ millions)


Company Value put in place
Source: 2008 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list.

1. Turner Corp., The 2,162.05
2. McCarthy Holdings 1,207.92
3. Skanska USA Building 960.00
4. Robins & Morton 882.12
5. Brasfield & Gorrie 783.73
6. JE Dunn Construction Group 685.15
7. William A. Berry & Son 441.00
8. M. A. Mortenson 427.06
9. Hunt Construction Group 400.00
10. Gilbane Building Co. 396.66
11. Swinerton 364.00
12. HBE Corp. 328.00
13. Pepper Construction Group 300.75
14. Hensel Phelps Construction 277.12
15. Clark Group 265.79
16. Balfour Beatty Construction 257.28
17. Whiting-Turner Contracting Co., The 243.26
18. Flintco Cos., The 241.04
19. Kitchell Contractors 240.63
20. Boldt Co., The 235.93

         
 

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