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
| Apr 26, 2011
Video: Are China's ghost cities a bubble waiting to burst?
It's estimated that 10 new cities are being built in China every year, but many are virtually deserted. Retail space remains empty and hundreds of apartments are vacant, but the Chinese government is more concerned with maintaining economic growth—and building cities is one way of achieving that goal.
| Apr 25, 2011
Earn $300 million by NOT hiring Frank Gehry
An Iowa philanthropist and architecture aficionado—who wishes to remain anonymous—is offering a $300 million “reward” to any city anywhere in the world that’s brave enough to hire someone other than Frank Gehry to design its new art museum.
| Apr 20, 2011
Marketing firm Funtion: to host “Construct. Build. Evolve.”
Function:, an integrated marketing agency that specializes in reaching the architecture, building and design community, is hosting an interactive art event, “Construct. Build. Evolve.” in Atlanta’s Piedmont Park on Thursday April 21, 2011 at 11:00AM EDT. During the event attendees will be asked to answer the question, “how would you build the future?” to rouse dialogue and discover fresh ideas for the future of the built environment.
| Apr 20, 2011
Architecture Billings Index: new projects inquiry index up significantly from February
The American Institute of Architects (AIA) reported the March ABI score was 50.5, a negligible decrease from a reading of 50.6 the previous month. This score reflects a modest increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.7, up significantly from a mark of 56.4 in February.
| Apr 19, 2011
What are the 15 most-watched construction and engineering stocks?
According to Motley Fool, a multimedia financial services company, the most-watched construction and engineering stock is Fluor (NYSE: FLR), which ranks #1 on BD+C’s Giants 300 engineering list with $1.994 billion in revenue in 2009. Check out the 14 other most-watched A/E stocks.
| Apr 19, 2011
AIA announces top 10 green Projects for 2011
The American Institute of Architects Committee on the Environment announced its Top 10 Green Projects for 2011. Among the winners: Cherokee Studios in Los Angeles, the Department of Energy's National Renewable Energy Laboratory in Golden, Colo., and the Vancouver Convention Centre West in Vancouver, British Columbia.
| Apr 18, 2011
Greening and Upgrading Today’s Vertical Transport Systems
Earn 1.0 AIA/CES HSW/SD learning units by studying this article and passing the online exam.
| Apr 14, 2011
U.S. embassies on a mission to green the world's buildings
The U.S. is putting greater emphasis on greening its worldwide portfolio of embassies. The U.S. State Department-affiliated League of Green Embassies already has 70 U.S. embassies undergoing efforts to reduce their environmental impact, and the organization plans to increase that number to more than 100 by the end of the year.
| Apr 14, 2011
How AEC Professionals Choose Windows and Doors
Window and door systems need to perform. Respondents to our annual window and door survey overwhelmingly reported that performance, weather resistance, durability, and quality were key reasons a particular window or door was specified.
