These days, revenue is a deceiving gauge of market conditions. Many top contractors reported record revenue for 2008 and they expect to finish out this year with strong numbers as they consume backlog built up in better times. But as jobs won during the boom reach completion, the reality of today’s troubled market is settling in, leaving large firms nervous about what late 2010 and 2011 could bring.
Turner Construction Co., New York City, finished off 2008 with a record revenue of $9.6 billion and Senior Vice President Nick Makes expects this year’s revenue to fall just short of that mark. Going forward is a different story. With financing still tight and many developers remaining cautious this year, Makes estimates the volume of projects the company would typically pursue is down by at least 25%. “That makes for a more challenging time in 2010 and 2011,” he says. “I am hopeful that 2011 will mark a point when work will head back up again.”