Revenue Makes Strong Comeback at Largest Contracting Firms
The construction industry revved up significantly in 2013, with the respondents to ENR California's annual survey of contractors reporting a 16.4% gain in revenue over the previous year. Large contractors such as the Anaheim office of Turner Construction Co. anticipate an even stronger surge during 2014.
"We are excited to contribute to some of the strongest growth that the industry has seen since 2008," says Rich Bach, a senior vice president at Turner, which in 2013 saw its in-state revenue climb by 16% to more than $1.2 billion.
"Our challenge in this quickly accelerating market is to manage rising costs," he adds. Strategies such as lean construction can help offset costs by bringing efficiencies and safety improvements to jobsites, Bach says.
Several firms reported 2013 revenue that shot up more than 50% from the previous year, including the Oakland office of Skanska USA Inc. The company attributes the gain to major project starts in both the civil and building market sectors. "We absolutely believe this is a sustaining trend in our business and 2014 will be another year of strong performance and growth," says Bruce Holms, executive vice president and general manager for Skanska USA Building.
So far this year, Sunnyvale-based Level 10 Construction has already surpassed its 2013 revenue, according to Dennis Giles, company president. "In the first half of 2014 alone, we've brought in more than $310 million, half of which is in new business," he says. The company is aggressively growing its executive, project management and support staff to handle the work.
San Francisco-based Swinerton Inc. takes the top spot in the overall ranking for the first time. The firm, which was ENR California's Contractor of the Year last year, jumped four spots following a 21% increase in revenue.