Construction spending for government buildings—excluding housing, education, and healthcare—expanded 14% in the fiscal year ending in June 2007. This is acceleration from the 4% growth in the prior fiscal year.
Spending for public safety buildings has been growing the fastest, but is projected to grow somewhat slower in the coming months. Still, spending will remain significantly higher than project cost inflation.
Government buildings are constructed when the cash for contract or bond payments is available, and cash is currently abundant. The 2006-07 fiscal year began with aggregate state government budget reserves equal to more than 9% of annual expenditures, nearly equal to the 10%-plus peak five years earlier. Budget reserves had fallen to 2-3% of spending just past the end of the last recession.
Sub-par economic growth over the last year will drop budget reserves in many states, but not by enough to cancel or delay projects already started or committed.
Top 20 government design firms
(2006 billings in $ millions)
| Firm | Billings |
| Source: 2007 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list. |
|
| 1. Jacobs Engineering Group | 212.51 |
| 2. URS Corp. | 152.00 |
| 3. CH2M HILL | 135.35 |
| 4. HOK | 126.90 |
| 5. Carter & Burgess | 109.18 |
| 6. Parsons Brinckerhoff | 94.87 |
| 7. HNTB Architecture | 76.26 |
| 8. DMJM H&N | 74.75 |
| 9. Burns & McDonnell | 70.77 |
| 10. STV Group | 57.60 |
| 11. Merrick & Co. | 40.18 |
| 12. CUH2A | 37.64 |
| 13. Hayes, Seay, Mattern & Mattern | 30.63 |
| 14. Heery International | 27.87 |
| 15. Mead & Hunt | 27.07 |
| 16. Teng Affiliated Cos. | 25.93 |
| 17. HDR Architecture | 24.23 |
| 18. KlingStubbins | 24.18 |
| 19. Baker and Associates | 22.90 |
| 20. Syska Hennessy Group | 21.72 |
Top 20 government contractors
(2006 revenue in $ millions)
| Firm | Revenue |
| Source: 2007 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list. |
|
| 1. Fluor Corp. | 1,754.82 |
| 2. Clark Group | 1,527.04 |
| 3. The Turner Corp. | 1,489.32 |
| 4. Perini Corp. | 813.39 |
| 5. PCL Construction Enterprises | 774.30 |
| 6. Jacobs Engineering Group | 680.32 |
| 7. Balfour Beatty Construction | 611.55 |
| 8. Hoffman Construction | 510.57 |
| 9. Hensel Phelps Construction | 468.81 |
| 10. Gilbane Building Co. | 370.77 |
| 11. Skanska USA Building | 342.00 |
| 12. Hunt Building Co. | 312.26 |
| 13. M. A. Mortenson Co. | 309.39 |
| 14. JE Dunn Construction Group | 256.20 |
| 15. Dick Corp. | 228.90 |
| 16. The Whiting-Turner Contracting Co. | 223.93 |
| 17. Manhattan Construction | 204.15 |
| 18. Walbridge Aldinger | 198.00 |
| 19. Bovis Lend Lease | 185.56 |
| 20. Coakley & Williams Construction | 184.11 |
