This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
This Website Uses Cookies
By closing this message or continuing to use our site, you agree to our cookie policy. Learn More
This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • News
    • Newswire
  • Southwest
  • Features
    • Projects
    • Companies
  • Top Lists
  • Current Issue
  • Blogs
  • Submit Your Photos
    • People
    • Projects
    • Events
  • Resources
    • Proposals & bids
    • Industry Jobs
    • Subscribe
    • eNewsletter
    • Events
    • Advertise
    • Reprints and Plaques
    • Staff Directory
    • Construction Cities
  • ENR Home
  • Other Regions
    • ENR Home
    • California
    • MidAtlantic
    • Midwest
    • Mountain States
    • New York
    • New England
    • Northwest
    • Southeast
    • Southwest
    • Texas & Louisiana
Home » Market Improves, But Struggles Continue for Top General Contractors
Southwest Construction CompaniesFeaturesSouthwest

Market Improves, But Struggles Continue for Top General Contractors

Market Improves, But Struggles Continue for Top General Contractors
Crews with Okland Construction pour concrete for Estrella Hall at the Estrella Mountain Community College project west of Phoenix.

Photo courtesy Okland Construction
Market Improves, But Struggles Continue for Top General Contractors
Caliente Construction crews raise a wall at Legacy Traditional Schools' new 57,000-sq-ft Athlos Traditional Academy charter school in Chandler, Ariz.

Photo Courtesy Caliente Construction
Market Improves, But Struggles Continue for Top General Contractors
DPR Construction crews pour concrete at the $38.4-million McCord Hall, part of the W.P. Carey School of Business at Arizona State University's Tempe campus.

Photo Courtesy DPR Construction
Market Improves, But Struggles Continue for Top General Contractors
Crews with Albuquerque, N.M.-based J.B. Henderson Construction work on a project for Los Alamos National Laboratories.

Photo courtesy J.B. Henderson Construction
Market Improves, But Struggles Continue for Top General Contractors
McCarthy Building Cos. workers pump concrete into the Chandler Water Secondary Clarifiers. The firm was the region's 3rd ranked general contractor this year.

Photo courtesy McCarthy Building Cos.
Market Improves, But Struggles Continue for Top General Contractors
A Tutor Perini Building Corp. welder works on a recent hotel project. The firm was selected to build tower three of Marriott's Grand Chateau Timeshare in Las Vegas.

Photo by Field Communications Associates Inc.
Market Improves, But Struggles Continue for Top General Contractors
FNF Construction crushes concrete and asphalt to make a recycled product conserving natural resources. The Tempe, Ariz.-based firm has fully portable plants that can be brought onto worksites in a matter of days and are able to customize productions to match all client needs.

Photo courtesy FNF Construction
Market Improves, But Struggles Continue for Top General Contractors
Sundt Construction is currently constructing the I-17 Cordes Junction upgrade north of Phoenix.

Photo courtesy Sundt Construction
Market Improves, But Struggles Continue for Top General Contractors
Whiteriver Construction, Lakeside, Ariz., built the Monument Valley Visitor Center for the Navajo Nation Park & Recreation Department.

Photo courtesy Whiteriver Construction
Market Improves, But Struggles Continue for Top General Contractors
Tutor Perini Building Co. recently completed the McCarran International Airport's new Terminal 3 ahead of schedule.

Photo courtesy McCarran Intl. Airport
Market Improves, But Struggles Continue for Top General Contractors
Hardison Downey Construction is rapidly erecting the Downtown Phoenix Housing project at 5th and Roosevelt streets, being built for Concord Eastridge & EdR to house Arizona State University students.

Photo courtesy Hardison Downey Construction
Market Improves, But Struggles Continue for Top General Contractors
Dramatically lit at night, the Rio Glass manufacturing facility was completed last year by Howard S. Wright.

Photo courtesy Howard S. Wright
Market Improves, But Struggles Continue for Top General Contractors
Minden, La.-based McInnis Brothers Construction built the San Luis Prison in San Luis, Ariz.

Photo courtesy McInnis Brothers Construction
Market Improves, But Struggles Continue for Top General Contractors
Burke Construction Group, Las Vegas, won a 2012 NAIOP Spotlight Merit Award for Community Impact with its Western High School Renovation and Expansion. The project scope included demolition and renovation of an existing 50-year-old high school in Las Vegas.

Photo courtesy Burke Construction Group
Market Improves, But Struggles Continue for Top General Contractors
Sundt Construction poured 3,500 cu yd of concrete for the Pima County/City of Tucson Joint Courts Complex slab foundation in Tucson, Ariz.

Photo by Liam Frederick Photography
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
Market Improves, But Struggles Continue for Top General Contractors
July 16, 2012
Scott Blair
Reprints
No Comments

ENR Southwest's annual survey of general contractors shows that 2011 was a transition year for the industry. Many firms were still feeling the effects of the recession, while others saw revenue jump dramatically.

Contractors in Arizona fared best, with 2011 revenue climbing to $4.7 billion, a rise of nearly 16% over 2010.

Sundt Construction, Tempe, Ariz., saw revenue rise 28%. "The key to success has been our diversity of market sectors," says Eric Hedlund, chief operating officer at Sundt. The company performs civil, industrial, building and federal work.

DPR Construction's Phoenix office had a stellar year, with revenue up 68% in 2011. "We have learned to embrace the fact that all markets are never flat simultaneously," says Dave Elrod, regional manager.

Despite the improving market, contractors aren't out of the woods yet. "While volume has increased, there's no margin or profit on that new work," says Mark Minter, executive director of Arizona Builders' Alliance, Phoenix. Growth tends to disproportionately consume cash in construction because of labor, equipment and other costs, so companies may become financially distressed as workloads ramp up. "It only takes one project where they don't get paid or they get paid very slowly, and they are out of business," he says.

Another challenge will be to attract and re-train skilled craftsmen to replace the large numbers lost during the recession, says Steve Grauer, district manager of Hensel Phelps Construction's Phoenix office.

New Mexico contractors enjoyed a modest increase in revenue to $1.2 billion in 2011, compared with $1.1 billion in 2010. Brycon Corp., Rio Rancho, N.M., shot up 12 spots in the overall chart due to a 61% increase in revenue. While some contractors have been forced to slash overhead or venture into unfamiliar markets to break even, Brycon's chief financial officer, Phil Casuas, says his firm has focused on industries and clients that can weather through difficult economic cycles. However, the firm isn't anticipating overall market improvement in the coming year. "Many of our clients are cautious not to overextend themselves until the economic and political environment improves and becomes more predictable," Casuas says.

Nevada Stagnates

Unfortunately, the gains elsewhere in the Southwest were overshadowed by stagnation in Nevada. The state lost more than $1 billion in construction activity during 2011, bringing in just $1.8 billion of work. Just five years ago, contractors reported $5.2 billion of work in Nevada.

Tutor Perini Building Corp., Henderson, Nev., recently completed a 10-year continuous run of multibillion-dollar Las Vegas projects such as CityCenter, Cosmopolitan and the just-opened Terminal 3 at McCarran International Airport. With revenue declining 73% in the region in 2011, the firm began shifting resources geographically into New York City and California, scoring several high-profile contracts in the process. "We've been able to overcome the shortage of work opportunities in Las Vegas," says Richard Rizzo, vice chairman. He adds that the megaprojects were anomalies. "Perini was built on smaller projects; our people are comfortable in that environment. We just have to convince our clients that we can add value at that level."

Previous 1 2 Next

ENR Subscribe

Recent Articles by Scott Blair

Real-World Users Point the Way Towards Digital Transformation at Bentley Conference

Think Tank Envisions Uses for Municipal-Scale Digital Twins

Oroville Spillways Emergency Recovery: Northern California Project of the Year 2019

Scott-blair

Blair manages day-to-day operations of the ENR editorial team to ensure brand quality, further best practices and support the editor-in-chief. He spearheads ENR's various competitions, including Best Projects and the Award of Excellence, and organizes editorial content at events including the Global Construction Summit. A Jesse H. Neal, Construction Media Alliance and AZBEES-award-winning writer and videographer, Blair frequently contributes to ENR’s burgeoning video channel with project tour videos and interviews with industry leaders. He is also a frequent speaker and moderator on topics such as design and jobsite technology, construction means and methods and marketing.

Related Articles

Huge Revenue Drops Pummel Firms, But Brighter Year Awaits

Niche Markets Help Top Subcontractors Stay Above Water

Related Products

BIM Handbook: A Guide to Building Information Modeling for Owners, Managers, Designers, Engineers and Contractors, 3rd Edition

2020 BNi General Construction Costbook with 50-Division MasterFormat

Related Events

How to Drive Productivity & Continuous Improvement During the Commissioning Phase

Post a comment to this article

Report Abusive Comment


Top Lists

Top Design FirmsTop Design Firms
Southwest Design Firms’ Success Hinges On Innovation


Top ContractorsTop Contractors
Energy Storage, Robotics To Shape Region’s Future


Top Specialty ContractorsTop Specialty Contractors
Labor Woes Persist As Specialty Firms Strive To Meet Demand



Industry Jobs

Videos

ENR Proposals and Bids


ENR Twitter
Tweets by @ENR_SW

ENR

ENR Digital Edition Cover

Dec 9, 2019

A joint venture of Skanska, Corman Kokosing Construction Co. and McLean Contracting Co. is moving toward an early 2020 construction start for a $463-million replacement for a 79-year-old bridge across the Potomac River, south of Washington, D.C.

View More Create Account
  • Resources
    • advertise
    • contact us
    • about us
    • photo submissions
    • customer service
    • digital edition
    • Survey And Sample
  • Subscription Center
    • Subscribe
    • Website Registration
    • Privacy Policy
    • eNewsletters
    • FAQ
  • Multimedia
    • Videos
    • Slideshows
    • Photo Contest

Copyright ©2019. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing