KBR Building Group No. 1 on 2012 Southeast's Top Contractors List Published by Engineering News-Record
June 29, 2012
GREENVILLE, SC – June 28, 2012 – Numerous construction markets beganto show signs of rebirth during 2011, and a considerable number ofopportunistic and well-positioned Southeast contractors were able tostart clawing back revenue previously lost during the recession.
Butit wasn’t all good news, as ENR Southeast’s annual Top Contractorsranking also reveals that while the seeds of recovery may have been sownfor some in the past year, a broad-based resurgence remains elusive.
Housingmarkets are coming back in Florida. In Tampa, Hardin Construction ispreparing to begin work on the Ella @ Encore apartment complex, part ofthe city’s Encore redevelopment project.
At Miami International Airport, Odebrecht Construction is leading thedevelopment of the planned $800-million Airport City project, to bebuilt entirely with private funding.
Related Links:
ENR Southeast’s 2011 Top Contractors Ranking
ENR Southeast’s Top Lists
Revenue Recovery
The results from this year’s ranking reflects the continuingup-and-down nature of today’s Southeast construction market. First,participation in the magazine’s annual survey declined again, with only91 firms responding this year—slightly more than half the 175 firms thatwere ranked just three years ago.
On the plus side, despite the lower number of firms, this year’scollective regional revenue total—from projects located in Florida,Georgia and the Carolinas—actually edged up, to roughly $16.3 billionfrom $16.1 billion a year ago. That pushed up the average revenue figureto approximately $179.25 million from $153.6 million a year ago.
And that overall increase in business is reflected throughout thesurvey, starting at the top. Of this year’s 10 highest-rankedcontractors, six posted revenue gains compared with a year ago.Top-ranked KBR—formerly BE&K Building Group—reported a 44% uptick inregional revenue, to this year’s highest total, $987.3 million, from$683.7 million a year ago.
KBR wasn’t alone, though. Many firms up and down this year’s rankingreported significant growth in revenue on a percentage basis, includingSkanska USA, 18%; The Whiting-Turner Contracting Co., 80%; HuntConstruction Group, 31%; Barnhill Contracting Co., 16%; HardinConstruction Co., 86%; and M.B. Kahn Construction Co., 35%.
Cautious Optimism for Recovery Grows
The improving numbers are having an impact on contractor psyches.ENR Southeast’s Top Contractors ranking has indicated a regionallydeclining market for several years now, and the latest signs of life arefinally lifting the mood.
Overall, numerous contractors are starting to expect the upturn that began in 2011 to continue through 2012 and beyond.
Ray Riddle, vice president with Holder Construction Co., Atlanta, saysthere is a steady stream of opportunities, probably at a higher pacethan a year ago.
In Charlotte, N.C., Frank Blythe, vice president of BlytheDevelopment, is even more upbeat. The current volume and pace ofbusiness is up from last year, he says. The volume of projects to bidhas increased dramatically. And I think future business opportunitieswill continue to increase due to signs of life in private-sectorconstruction.
No markets are in decline, adds Blythe. That was not the case a year ago.
Atlanta-based Hardin Construction Co., with offices in Tampa andOrlando, is witnessing rejuvenated markets, too, says M. BrantleyBarrow, Hardin’s chairman. For example, Hardin will soon start buildingthe Ella @ Encore, labeled as a mixed-use project but consisting mostlyof apartments.
There are many more opportunities in the multi-family rentalhousing, retail and hospitality markets than there were a year ago,Barrow says, adding that he’s even seen opportunities in the previouslymoribund office market. We expect the opportunities to continue toincrease, he adds.
Despite the optimism, recovery remains spotty. Some markets are healthy, while others continue to languish.
The volume of medical and university work in the Southeast continuesto show positive trends, says William Leathers, senior vice presidentin the Orlando office of ValleyCrest Landscape Development.
Private-sector projects remain hit and miss, too. On a positive note,the Southeast should continue to see more data center work, perhapsmost notably represented by the estimated $1-billion facility that Applerecently completed in Maiden, N.C.
