Healthcare Report: Double-digit growth continues for the surging healthcare sector

Jim Haughey, Director, Research and Analytics, Reed Construction Data

Healthcare construction spending increased 14% over the last 12 months and is expected to continue expanding at the same pace through 2008. Healthcare starts, reported by Reed Construction Data, increased 16% in 2006 and are expanding at an 11% pace in 2007 through May.

Construction spending for hospitals jumped 23% in 2006. While spending is unchanged so far in 2007, it is expected to resume growing later this year with the rebounding economy. Spending for specialty medical buildings, such as offices and labs, dropped 11% in 2006, but has not fallen further so far in 2007.

Spending for nursing homes and other residential medical buildings increased 32% in 2006 and has continued to expand nearly as fast in early 2007. The recent surge in this market is expected to continue through next year, and is partly encroaching on the multifamily home market by offering a more attractive arrangement in a medical setting.

Firm	Billings
Source: 2007 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list.
1. HDR Architecture	103.86
2. HKS	66.49
3. Cannon Design	58.66
4. Perkins+Will	53.55
5. HOK	52.62
6. Stantec	50.26
7. URS Corp.	49.40
8. PageSoutherlandPage	42.57
9. RTKL Associates	41.78
10. NBBJ	39.31
11. Anshen+Allen	38.52
12. Perkins Eastman	38.50
13. BSA LifeStructures	37.16
14. SmithGroup	34.22
15. FreemanWhite	34.00
16. Smith Seckman Reid	32.40
17. Gresham, Smith and Partners	31.42
18. Hammel, Green and Abrahamson	30.65
19. RBB Architects	27.80
20. Chong Partners Architecture	27.55

Firm	Revenue
Source: 2007 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list.
1. The Turner Corp.	1,737.54
2. McCarthy Building Cos.	1,017.09
3. JE Dunn Construction Group	896.70
4. Bovis Lend Lease	835.03
5. Skanska USA Building	684.00
6. Robins & Morton	627.54
7. The Whiting-Turner Contracting Co.	447.86
8. M. A. Mortenson Co.	407.83
9. Hunt Construction Group	398.00
10. Swinerton Inc.	342.20
11. Balfour Beatty Construction	337.41
12. HBE	336.00
13. Hoffman Construction	329.40
14. DPR Construction	315.62
15. PCL Construction Enterprises	309.72
16. Gilbane Building Co.	247.18
17. Kitchell Contractors	230.47
18. Clark Group	227.43
19. William A. Berry & Son	193.00
20. The Flintco Cos.	191.80

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