Higher education construction spending is currently 18% higher than a year ago, but the year-to-year gain will slide down to near 10% for most of 2008-09. Public higher education spending increased 13% during the last year, while private spending jumped 29%, mostly for classrooms and residence halls.
The value of construction starts has declined from the peak level last summer with no pickup expected by the end of 2009. Total education construction starts increased 8% in 2006 and 5% in 2007, but will drop 20% this year and stay at the 2008 level through 2009. State budget reserves for funding university construction weakened from excellent to average earlier this year and will slip to sub-par in 2009. This is a much milder drop in funding availability than the dip that occurred in 2002-03. Similarly, the investment earnings of private universities have weakened substantially in the slow economy. The era of huge gains in hedge funds has passed.
Top 20 university 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. |
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| 1. | AECOM Technology Corp. | 76.17 |
| 2. | Arup | 66.00 |
| 3. | HOK | 64.02 |
| 4. | Cannon Design | 43.37 |
| 5. | Jacobs Engineering Group | 39.35 |
| 6. | Burt Hill | 34.45 |
| 7. | Perkins+Will | 30.60 |
| 8. | STV Group | 30.09 |
| 9. | RMJM | 29.70 |
| 10. | Einhorn Yaffee Prescott | 29.28 |
| 11. | Stantec | 29.06 |
| 12. | Zimmer Gunsul Frasca Architects | 26.85 |
| 13. | Rosser International | 24.75 |
| 14. | URS Corp. | 24.00 |
| 15. | Sasaki Associates | 22.95 |
| 16. | CUH2A | 21.61 |
| 17. | HDR Architecture | 21.20 |
| 18. | Vanderweil Engineers | 20.85 |
| 19. | Affiliated Engineers | 19.48 |
| 20. | SmithGroup | 18.70 |
Top 20 university 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. |
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| 1. | Turner Corp., The | 1,034.02 |
| 2. | Skanska USA Building | 600.00 |
| 3. | Structure Tone | 500.14 |
| 4. | Gilbane Building Co. | 396.66 |
| 5. | Hunt Construction Group | 360.00 |
| 6. | Flintco Cos., The | 335.36 |
| 7. | M. A. Mortenson | 298.94 |
| 8. | McCarthy Holdings | 268.43 |
| 9. | JE Dunn Construction Group | 263.52 |
| 10. | Hensel Phelps Construction | 251.93 |
| 11. | PCL Construction Enterprises | 218.61 |
| 12. | Swinerton | 200.20 |
| 13. | Whiting-Turner Contracting Co., The | 194.61 |
| 14. | Clark Group | 189.85 |
| 15. | Paric Corp. | 175.10 |
| 16. | Shawmut Design and Construction | 170.12 |
| 17. | C.W. Driver | 150.37 |
| 18. | Choate Construction | 147.78 |
| 19. | Austin Commercial | 141.35 |
| 20. | Boldt Co., The | 134.82 |
