Engineering firms and engineering/architecture firms—those that earn more than 50% of their revenues from engineering—have their sights set on foreign shores. Many are jumping headfirst into international waters.
“Instead of overseeing projects from New York, our firm has established offices in Mumbai, Moscow, and other cities outside North America, aiming to overcome the challenge of navigating the local landscape or hiring practices, tax law, and business practices,” says Thomas Z. Scarangello, PE, CEO and Chairman of EA Giant Thornton Tomasetti.
Other firms are just dipping their toes into foreign waters, still looking for international business but choosing not to establish additional offices. Brad Harmsen, AIA, Chairman/CEO of BRPH, says that although his firm is actively working in locales across the globe, they’re partnering with domestic firms to do so, partly because of “the learning curve that comes when working with different currencies and legalities.”
SCROLL DOWN FOR GIANTS 300 ENGINEERING & ENGINEERING/ARCHITECTURE FIRM RANKINGS
Shanghai and Dubai are hot spots for E and EA Giants these days. Glumac, Magnusson Klemencic Associates, and Syska Hennessy Group have opened or expanded their offices in Shanghai. KJWW and Syska Hennessy opened new offices in Dubai. Thornton Tomasetti bucked the trend and opened offices in Beijing and Riyadh, Saudi Arabia, while Arup Americas opened new offices in São Paulo and Rio de Janeiro, just in time for soccer’s World Cup in 2014.
Establishing an office abroad is one thing; getting the business is something entirely different. Referring specifically to the Middle East, Paul VanDuyne, PE, president of KJWW, says, “It takes approximately two years to develop the appropriate relationships, name recognition, and reputation to be successful in obtaining projects in this region.”
Despite the difficulties, an increasingly large share of engineering Giants’ yearly revenue is coming from international projects. Magnusson Klemencic President Ron Klemencic, PE, SE, says that 20-30% of MKA’s gross revenue comes from international business, while KJWW anticipates that 10% of its 2013 revenue will come from international projects. Syska Hennessy Group’s goal is to beef up its international activity by 25% over the next five years.
KEY ROLE OF TECHNOLOGY
Beyond establishing an international presence, technology is also a crucial differentiator for E and EA Giants firms.
Syska Hennessy Group’s new Information and Communications Technology group is offering an expanded scope of services for organizations looking to upgrade their IT platforms with the latest technologies. “Our new offerings include tools and expertise to apply virtualization of existing client environments, data center relocation management, disaster recovery and IT security services, and network and Internet/intranet design and implementation,” said Co-CEO/Co-president Cyrus J. Izzo, PE.
Thornton Tomasetti launched a new Building Sustainability practice in January and now offers LEED consulting and administration, energy and daylight modeling, and sustainable business strategies. The firm also has an advanced computational modeling team; it leverages new technologies by developing custom digital tools that utilize generative and parametric modeling, which enables its engineers to collaborate more effectively with architects in the early phases of design.
HELPING CLIENTS FIND THE MONEY FOR PROJECTS
New financing solutions are also playing a part in E/EA Giants’ business strategies. With the U.S. construction market still in recovery, alternative financing methods are being sought out to help clients put together the dollars they need to complete projects.
At Syska Hennessy Group, public-private partnerships are on the radar. “We are observing an increase in P3 projects across geographies and market sectors,” said Syska Hennessy Group’s Izzo. “The first building being delivered as a true P3 is the Long Beach courthouse in California, which will top out this summer.”
Others are bringing on experts to find the money. Graef hired an economic development specialist, Ronald Van Straten, who has more than 25 years’ experience in helping mostly municipal clients seek grants, low-cost loans, and other funding streams for their capital projects, including tax increment financing.
HEAVY CONCENTRATION AT THE TOP 10 FIRMS
As is true of most of the categories in our Giants 300 rankings, there is a great deal of concentration at the highest level in the E and EA markets. The top 10 engineering firms generated 47% of total revenue for the category, while the top 10 engineering/architecture Giants generated a hefty 85% of the dollars in their group. +
ENGINEERING FIRMS
| Rank | Company | 2011 Total Revenue ($) |
| 1 | Fluor Corp. | 220,674,900 |
| 2 | Arup | 140,324,134 |
| 3 | WSP USA | 98,900,000 |
| 4 | Syska Hennessy Group | 98,744,701 |
| 5 | Affiliated Engineers | 92,815,000 |
| 6 | KPFF Consulting Engineers | 89,000,000 |
| 7 | Henderson Engineers | 61,266,000 |
| 8 | AKF Group | 58,100,000 |
| 9 | TTG/TMAD Taylor & Gaines | 56,820,300 |
| 10 | Smith Seckman Reid | 53,497,000 |
| 11 | R.G. Vanderweil Engineers | 49,823,500 |
| 12 | KJWW Engineering Consultants | 43,784,892 |
| 13 | Bard, Rao + Athanas Consulting Engineers | 40,100,000 |
| 14 | Coffman Engineers | 37,200,000 |
| 15 | TLC Engineering for Architecture | 36,387,033 |
| 16 | Degenkolb Engineers | 35,398,917 |
| 17 | Sebesta Blomberg | 35,120,000 |
| 18 | ESD/Environmental Systems Design | 34,465,000 |
| 19 | Rolf Jensen & Associates | 34,300,000 |
| 20 | Walter P Moore | 34,231,775 |
| 21 | RMF Engineering | 34,005,000 |
| 22 | Glumac | 33,010,927 |
| 23 | Magnusson Klemencic Associates | 32,306,973 |
| 24 | RDK Engineers | 30,882,000 |
| 25 | Mazzetti Nash Lipsey Burch | 28,836,967 |
| 26 | Aon Fire Protection Engineering | 28,200,000 |
| 27 | Birdsall Services Group | 27,500,000 |
| 28 | Interface Engineering | 25,938,485 |
| 29 | M/E Engineering | 25,915,000 |
| 30 | ccrd partners | 24,100,000 |
| 31 | H.F. Lenz Co. | 22,799,000 |
| 32 | Heapy Engineering | 21,402,816 |
| 33 | Sparling | 20,589,847 |
| 34 | ThermalTech Engineering | 19,890,000 |
| 35 | KCI Technologies | 19,761,000 |
| 36 | Newcomb & Boyd | 18,454,021 |
| 37 | Henneman Engineering | 18,000,000 |
| 38 | Bridgers & Paxton Consulting Eng. | 17,650,492 |
| 39 | GHT Limited | 17,363,705 |
| 40 | Eaton Energy Solutions | 16,694,769 |
| 41 | Rutherford & Chekene | 16,538,000 |
| 42 | Dunham Associates | 15,500,000 |
| 43 | Joseph R. Loring & Associates | 15,000,000 |
| 44 | Wallace Engineering | 13,780,000 |
| 45 | James Posey Associates | 13,500,000 |
| 46 | KLH Engineers | 12,559,382 |
| 47 | Lilker Associates Consulting Engineers | 12,500,000 |
| 48 | Karpinski Engineering | 12,343,996 |
| 49 | P2S Engineering | 11,896,229 |
| 50 | RMH Group, The | 11,864,683 |
| 51 | Peter Basso Associates | 10,400,000 |
| 52 | Rist-Frost-Shumway Engineering | 10,039,000 |
| 53 | French & Parrello Associates | 9,782,762 |
| 54 | Bala Consulting Engineers | 9,360,000 |
| 55 | Allen & Shariff | 8,610,036 |
| 56 | Wick Fisher White | 7,821,928 |
| 57 | Brinjac Engineering | 7,342,166 |
| 58 | CTLGroup | 6,030,000 |
| 59 | O’Dea, Lynch, Abbattista Consulting Engineers | 5,900,000 |
| 60 | FBA Engineering | 4,000,000 |
| 61 | Kamm Consulting | 3,681,775 |
| 62 | Apogee Consulting Group | 2,485,000 |
| 63 | G&W Engineering | 2,058,000 |
ENGINEERING/ARCHITECTURE FIRMS
| Rank | Company | 2011 Total Revenue ($) |
| 1 | Jacobs | 2,699,100,000 |
| 2 | AECOM Technology Corp. | 1,487,000,000 |
| 3 | M+W U.S. | 1,015,199,252 |
| 4 | Stantec | 463,300,000 |
| 5 | Parsons Brinckerhoff | 311,300,000 |
| 6 | URS Corp. | 294,100,000 |
| 7 | exp | 205,000,000 |
| 8 | Science Applications International Corp. | 185,390,000 |
| 9 | Merrick & Co. | 111,000,000 |
| 10 | Day & Zimmermann | 109,909,604 |
| 11 | SSOE Group | 107,819,740 |
| 12 | STV | 104,876,000 |
| 13 | Thornton Tomasetti | 98,017,214 |
| 14 | Burns & McDonnell | 94,711,826 |
| 15 | Dewberry | 89,282,766 |
| 16 | Michael Baker Jr., Inc. | 80,730,000 |
| 17 | Middough | 75,750,000 |
| 18 | Clark Nexsen | 68,424,208 |
| 19 | Wiss, Janney, Elstner Associates | 64,080,000 |
| 20 | Simpson Gumpertz & Heger | 59,170,000 |
| 21 | AKF Group | 58,100,000 |
| 22 | H&A Architects & Engineers | 39,064,020 |
| 23 | Walker Parking Consultants | 34,422,898 |
| 24 | BRPH | 31,500,000 |
| 25 | Bergmann Associates | 30,700,000 |
| 26 | Shive-Hattery | 28,192,943 |
| 27 | Atkins North America | 23,620,537 |
| 28 | Ross & Baruzzini | 20,377,769 |
| 29 | Barge Waggoner Sumner & Cannon | 20,100,000 |
| 30 | Paulus, Sokolowski and Sartor | 18,300,000 |
| 31 | Guernsey | 18,293,701 |
| 32 | L.R. Kimball | 17,759,000 |
| 33 | GRAEF-USA | 16,770,180 |
| 34 | Zak Companies | 12,335,494 |
| 35 | CJL Engineering | 12,228,000 |
| 36 | Stanley Consultants | 10,892,000 |
| 37 | Spectrum Engineers | 8,828,890 |
| 38 | GRW | 6,290,216 |
| 39 | Davis, Bowen & Friedel | 4,680,714 |
| 40 | Vintage Archonics | 1,972,220 |
Related Stories
| May 27, 2014
One World Trade Center cuts rents due to sluggish activity
Sluggish economy and lackluster leasing force developer The Durst Organization and the Port Authority of New York and New Jersey to reduce asking rents by nearly 10% to $69/sf.
| May 27, 2014
Fire Rated Glass contributes to open lab environment at JSNN
Openness and transparency were high priorities in the design of the Joint School of Nanoscience & Nanoengineering within the Gateway University Research Park in Greensboro, N.C. Because the facility’s nanobioelectronics clean room houses potentially explosive materials, it needed to be able to contain flames, heat, and smoke in the event of a fire. SPONSORED CONTENT
| May 27, 2014
What are your services worth?
The price, cost, and value of design services are explored in a recent Design Intelligence article authored by Scott Simpson, a senior fellow of the Design Futures Council. Value, he explains, represents the difference between “price” and “cost.” SPONSORED CONTENT
| May 27, 2014
Contractors survey reveals improving construction market
The construction industry is on the road to recovery, according to a new survey by Metal Construction News. Most metrics improved from the previous year’s survey, including a 19.4% increase in the average annual gross contracting sales volume. SPONSORED CONTENT
| May 27, 2014
How to develop a dynamic referral system
Compelling your clients to provide you with quality referrals is one of the best ways to build a successful business. Here are ways to ‘train’ your clients to make quality referrals. SPONSORED CONTENT
Sponsored | | May 27, 2014
Grim Hall opens the door to fire safety with fire-rated ceramic glass
For the renovation of Lincoln University’s Grim Hall life sciences building into a state-of-the-art computer facility, Tevebaugh Associates worked to provide students and faculty with improved life safety protection. Updating the 1925-era facility's fire-rated doors was an important component of the project.
| May 26, 2014
New Jersey data centers will manage loads with pods
The two data center facilities totaling almost 430,000 sf for owner Digital Realty Trust will use the company's TK-Flex planning module, allowing for 24 pods.
| May 23, 2014
Big design, small package: AIA Chicago names 2014 Small Project Awards winners
Winning projects include an events center for Mies van der Rohe's landmark Farnsworth House and a new boathouse along the Chicago river.
| May 23, 2014
Top interior design trends: Gensler, HOK, FXFOWLE, Mancini Duffy weigh in
Tech-friendly furniture, “live walls,” sit-stand desks, and circadian lighting are among the emerging trends identified by leading interior designers.
| May 22, 2014
How to measure what matters
Measuring what matters is essential for professional services firms, says author and consultant Tim Williams, particularly as firms continue to experiment with the concept of outcome-based compensation agreements.
