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

Image by Ira Gorelick from Pixabay
Affordable Housing | Mar 11, 2024

Los Angeles’s streamlined approval policies leading to boom in affordable housing plans

Since December 2022, Los Angeles’s planning department has received plans for more than 13,770 affordable units. The number of units put in the approval pipeline in roughly one year is just below the total number of affordable units approved in Los Angeles in 2020, 2021, and 2022 combined.

Ordering steel is the riskiest part of a large-scale job, but Walter P Moore’s complete modeling of GEODIS Park, Nashville’s new Major League Soccer stadium, allowed the contractor’s six steel bids to come in
BIM and Information Technology | Mar 11, 2024

BIM at LOD400: Why Level of Development 400 matters for design and virtual construction

As construction projects grow more complex, producing a building information model at Level of Development 400 (LOD400) can accelerate schedules, increase savings, and reduce risk, writes Stephen E. Blumenbaum, PE, SE, Walter P Moore's Director of Construction Engineering.

Construction worker against the backdrop of the city
AEC Tech | Mar 9, 2024

9 steps for implementing digital transformation in your AEC business

Regardless of a businesses size and type, digital solutions like workflow automation software, AI-based analytics, and integrations can significantly enhance efficiency, productivity, and competitiveness.

Large conference room design for the hybrid workplace
Office Buildings | Mar 8, 2024

Conference room design for the hybrid era

Sam Griesgraber, Senior Interior Designer, BWBR, shares considerations for conference room design in the era of hybrid work.

98 architects elevated to AIA's College of Fellows in 2024
Architects | Mar 8, 2024

98 architects elevated to AIA's College of Fellows in 2024

The American Institute of Architects (AIA) is elevating 96 member-architects and 2 non-member-architects to its College of Fellows, an honor awarded to architects who have made significant contributions to the profession. The fellowship program was developed to elevate architects who have achieved a standard of excellence in the profession and made a significant contribution to architecture and society on a national level. 

Bjarke Ingels’ Oakland A’s new Las Vegas ballpark Image by negativ
Sports and Recreational Facilities | Mar 7, 2024

Bjarke Ingels’ design for the Oakland A’s new Las Vegas ballpark resembles ‘a spherical armadillo’

Designed by Bjarke Ingels Group (BIG) in collaboration with HNTB, the new ballpark for the Oakland Athletics Major League Baseball team will be located on the Las Vegas Strip and offer panoramic views of the city skyline. The 33,000-capacity covered, climate-controlled stadium will sit on nine acres on Las Vegas Boulevard. 

3 key considerations when converting a warehouse to a laboratory
Adaptive Reuse | Mar 7, 2024

3 key considerations when converting a warehouse to a laboratory

Does your warehouse facility fit the profile for a successful laboratory conversion that can demand higher rents and lower vacancy rates? Here are three important considerations to factor before proceeding. 

The Freedom Plaza shopping center in Los Angeles was designed to be a reflection of the people of Watts, Calif., and to serve as a community-centric gathering space.
Shopping Centers | Mar 7, 2024

How shopping centers can foster strong community connections

In today's retail landscape, shopping centers are evolving beyond mere shopping destinations to become vibrant hubs of community life. Here are three strategies from Nadel Architecture + Planning for creating strong local connections. 

Image by LEEROY Agency from Pixabay
Market Data | Mar 6, 2024

Nonresidential construction spending slips 0.4% in January

National nonresidential construction spending decreased 0.4% in January, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.190 trillion.

For The Variel in Woodland Hills, Calif., general contractor W.E. O'Neil used prefabricated wall panels to expedite construction. Photo courtesy W.E. O'Neil
MFPRO+ Research | Mar 6, 2024

Top 10 trends in senior living facilities for 2024

The 65-and-over population is growing faster than any other age group. Architects, engineers, and contractors are coming up with creative senior housing solutions to better serve this burgeoning cohort. 

boombox1 - default
boombox2 -

Top Articles

native1 -

More In Category

Mass Timber

Bjarke Ingels Group designs a mass timber cube structure for the University of Kansas

Bjarke Ingels Group (BIG) and executive architect BNIM have unveiled their design for a new mass timber cube structure called the Makers’ KUbe for the University of Kansas School of Architecture & Design. A six-story, 50,000-sf building for learning and collaboration, the light-filled KUbe will house studio and teaching space, 3D-printing and robotic labs, and a ground-level cafe, all organized around a central core.

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