flexiblefullpage -

HORIZONTV FEATURING BD+C: WATCH EPISODES ON DEMAND AT HORIZONTV

Menu View Full Menu
Subscribe Here
billboard - default
interstitial1 - interstitial
catfish1 - bottom
Currently Reading

Mergers and acquisitions transform engineering sector [2013 Giants 300 Report]

Mergers and acquisitions transform engineering sector [2013 Giants 300 Report]

Merger and acquisition deals by MEP, commissioning, structural, and specialty engineering firms were up 14% nationwide in 2012 compared with 2011.

By Julie Higginbotham, Senior Editor | July 15, 2013
Planning for extreme weather events is an increasingly important aspect of engineering work. In a large-scale example, structural engineer Walter P Moore collaborated with architect Populous, wind engineer RWDI, and Hunt Construction to create a retractable-roof park for the Miami Marlins. During storms, roof panels can be positioned in a not-quite-closed manner to reduce the sail effect. The 36,000-seat facility meets the Miami-Dade building code, which required wind resistance of up to 146 mph. Photo: Christy Radecic
Continue Reading
Merger and acquisition deals by MEP, commissioning, structural, and specialty engineering firms were up 14% nationwide in 2012 compared with 2011, according to consulting firm Morrissey Goodale (morrisseygoodale.com). Since the beginning of 2013, the consultant has reported more than 60 M&A transactions involving North American engineering firms, including interstate, intrastate, and international deals.
 
As economic recovery generates new business, engineering and engineering/architecture firms continue to seek M&A targets that offer an expanded employee base, a geographic springboard, or simply a broader mix of skills. A typical example: the November acquisition of Energy Ace, a Georgia-based commissioning and sustainability specialist, to beef up the green expertise of global engineering, architecture, design-build, surveying, and geospatial solutions firm Merrick & Company.
 
During the recession, multiple architecture and architecture/engineering firms also sought to broaden their client appeal by going on an engineering talent hunt. A third of AIA member firms now identify as “multidisciplinary,” including engineering services, compared with about 25% a decade ago, according to Morrissey Goodale.
 
SSOE Group is among the companies capitalizing on the volatile business climate. “We closed on three M&A transactions in 2012, so our emphasis in 2013 is on integration and realizing the synergies from the combined companies,” says CEO Tony Damon, AIA, LEED AP. “Our merger with Evergreen EDC in December should be transformative, allowing us to diversify our business and leverage our combined resources for new clients, in new markets and geographic locations.”
 

TOP ENGINEERING FIRMS

 
2012 Total Revenue ($)
1 Fluor $221,231,200
2 Arup $149,738,587
3 Affiliated Engineers $105,503,000
4 WSP USA $105,362,352
5 KPFF Consulting Engineers $91,000,000
6 Syska Hennessy Group $82,097,502
7 Henderson Engineers $63,485,775
8 Smith Seckman Reid $52,919,312
9 KJWW Engineering Consultants $51,092,154
10 Vanderweil Engineers $50,552,200

TOP ENGINEERING/ARCHITECTURE FIRMS

 
2012 Total Revenue ($)
1 Jacobs Engineering Group $2,715,210,000
2 AECOM Technology Corp. $1,610,390,000
3 Parsons Brinckerhoff $337,900,000
4 URS Corp. $314,266,757
5 Buro Happold Consulting Engineers $194,220,000
6 Burns & McDonnell $160,645,000
7 Thornton Tomasetti $124,575,393
8 Science Applications International Corp. $120,249,686
9 Merrick & Co. $103,998,000
10 SSOE Group $103,708,918
Damon credits a rebound in business from manufacturing and automotive clients, especially in the Southeast, for some of SSOE’s bullish attitude. Other hot prospects identified by Damon include the semiconductor industry in the West, and international markets, especially China, India, Mexico, and Brazil.
 
Steven Strauss, President of Glumac, reports good business from domestic micorelectronics companies and from Chinese clients, some of whom are developing entire new cities. Strauss has also seen an uptick in medical office buildings, mission critical, hospitality, and mixed-use commercial. “Projects that have been on the back burner are now re-emerging, and developer clients are more able to get financing through banks and institutional investors.”
 
For Bergmann Associates, the retail sector has been a bright spot. “The growth has been primarily with corporate retailers—big boxes, grocery stores, banks, restaurants—in New England and the Mid-Atlantic region,” says CEO Thomas C. Mitchell, PE. Property development companies in the East and Midwest have also been hiring the firm, and Bergmann has won new clients in science and technology, replacing some who have stopped building. The company recently added personnel in Michigan, Ohio, and the Carolinas.
 
In the West, Spectrum Engineers is getting a steady flow of work from retail, mission critical, and private commercial development, as well as some government clients. However, K-12 is “slow,” according to President and Principal Electrical Engineer Dave Wesemann, PE, LEED AP, ATD.
 
Considerable hustle is still required, even as the market improves. “Business continues to be challenging overall in the Southeast,” says Mark A. Gelfo, PE, LEED AP BD+C, LEED AP O+M, CxA, EMP, Director of Business Development and Sustainability at TLC Engineering for Architecture. “Competition remains high, and clients want more and more for less and less. During the past few years we have made significant initiatives in energy services, federal—though that market’s definitely on a downward track—mission critical, and hospitality, while maintaining our historically major markets such as healthcare, commercial office, and higher education.”
 
Like many engineering pros, Gelfo expects energy services—from commissioning, auditing, and retro-Cx to high-performance MEP design—to generate significant revenues for the foreseeable future. Spectrum’s Wesemann says advances in green technology, including LED lighting and variable-refrigerant flow HVAC, are persuading some clients to seek a more integrated delivery model to take advantage of all the potential savings.
 
According to Kenneth G. Diehl, Jr., PE, Senior Vice President at Smith Seckman Reid, building owners increasingly understand the high long-term ROI of green upgrades—a trend that can only be good news for engineers. “The biggest mover in this area is currently existing buildings that are using retrocommissioning to significantly lower utility costs,” he says. “The market is continuing to move toward a model that supports high-performance building operations.”
 

Read BD+C's full Giants 300 Report

Tags

Related Stories

| Aug 11, 2010

10 tips for mitigating influenza in buildings

Adopting simple, common-sense measures and proper maintenance protocols can help mitigate the spread of influenza in buildings. In addition, there are system upgrades that can be performed to further mitigate risks. Trane Commercial Systems offers 10 tips to consider during the cold and flu season.

| Aug 11, 2010

Reed Construction Data files corporate espionage lawsuit against McGraw-Hill Construction Dodge

Reed Construction Data (RCD), a leading construction information provider and a wholly-owned subsidiary of Reed Elsevier (NYSE:RUK, NYSE:ENL), today filed suit in federal court against McGraw-Hill Construction Dodge, a unit of The McGraw-Hill Companies, Inc. (NYSE:MHP). The suit charges that Dodge has unlawfully accessed confidential and trade secret information from RCD since 2002 by using a series of fake companies to pose as RCD customers.

| Aug 11, 2010

Jacobs, HOK top BD+C's ranking of the 75 largest state/local government design firms

A ranking of the Top 75 State/Local Government Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants

| Aug 11, 2010

Brad Pitt’s foundation unveils 14 duplex designs for New Orleans’ Lower 9th Ward

Gehry Partners, William McDonough + Partners, and BNIM are among 14 architecture firms commissioned by Brad Pitt's Make It Right foundation to develop duplex housing concepts specifically for rebuilding the Lower 9th Ward in New Orleans. All 14 concepts were released yesterday.

| Aug 11, 2010

NAVFAC releases guidelines for sustainable reconstruction of Navy facilities

The guidelines provide specific guidance for installation commanders, assessment teams, estimators, programmers and building designers for identifying the sustainable opportunities, synergies, strategies, features and benefits for improving installations following a disaster instead of simply repairing or replacing them as they were prior to the disaster.

| Aug 11, 2010

City of Anaheim selects HOK Los Angeles and Parsons Brinckerhoff to design the Anaheim Regional Transportation Intermodal Center

The Los Angeles office of HOK, a global architecture design firm, and Parsons Brinckerhoff, a global infrastructure strategic consulting, engineering and program/construction management organization, announced its combined team was selected by the Anaheim City Council and Orange County Transportation Authority (OCTA) to design phase one of the Anaheim Regional Transportation Intermodal Center.

| Aug 11, 2010

BIG beats out Foster and Hadid in design competition for Kazakhstan’s National Library

| Aug 11, 2010

Building Systems commissioning and retro-commissioning training program: Chicago, September 23, 2009

| Aug 11, 2010

GBCI launches credentialing maintenance program for current LEED APs

The Green Building Certification Institute (GBCI) launched a credentialing maintenance program (CMP) for LEED APs and Green Associates, ensuring that LEED professional credentials will remain relevant and meaningful in a rapidly evolving marketplace.

| Aug 11, 2010

Construction employment shrinks in 319 of the nation's 336 largest metro areas in July, continuing months-long slide

Construction workers in communities across the country continued to suffer extreme job losses this July according to a new analysis of metropolitan area employment data from the Bureau of Labor Statistics released today by the Associated General Contractors of America. That analysis found construction employment declined in 319 of the nation’s largest communities while only 11 areas saw increases and six saw no change in construction employment between July 2008 and July 2009.

boombox1 - default
boombox2 -

Top Articles

native1 -

More In Category

halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021