...we lose a [bid] in a way that leads us to wonder if there had been some corruption," he says. "We have processes in place to ensure we are protected against one of our staff becoming exposed."

In terms of geographical markets, China and the new members of the European Union are this year’s star turns. With rapid economic growth and preparations for the 2008 Olympic Games, China is boosting order books with the promise of more to come.

Staff numbers for WS Atkins’ four Chinese centers have mushroomed to 400, says Norman Schunter, a group managing director. Two more offices will open this year. "A lot of the work is in urban design and regeneration," he says.

Ostenfeld says the Chinese "have had made a major effort to protect intellectual property." And he believes that, instead of being the "outrageous copiers" they once were, the Chinese "have a policy of being at the cutting edge. They want to have new technology."

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For DHV, China also is a "very strong" market, says Campen, with some 150 staff in the country. "We anticipate [numbers] will double in a year," he says. DHV has a contract to help design the Beijing airport’s $2-billion third terminal.

As mainland Chinese prospects grow, Hong Kong continues to lose its lustrous reputation. "Margins are getting tighter [but] competition has always been strong," says Arup’s Hill. Maunsell increased its share of a static market, says Odgers. "But most of our competitors are finding it tough," he adds.

In India, "business is OK," says Peter Lee, managing director of Mott’s Mumbai-based subsidiary Dalal Mott MacDonald. "The business environment is better for private-sector firms in the public sector," he says, though some 60% of the firm’s work is industrial. "Infrastructure hasn’t expanded as far as we might have hoped. There are still a lot of bureaucratic constraints," he says.

In the Middle East, Iraq remains out of bounds for many firms. "For us, it’s entirely a security issue," says Stovell, whose firm is doing limited rehabilitation work with U.K. aid in Basra. Ultimately, there will be "fantastic opportunities," he says. Because of security problems, COWI delayed a transportation study in Iraq awarded recently by Denmark’s aid agency Danida, adds Ostenfeld.

But in the United Arab Emirates, the market is "absolutely buoyant...there’s no end to growth," says Atkins’ Schunter. The firm earlier this year won a contract to plan, design and manage a $1-billion residential development project off the south tip of Bahrain. Set on 20 sq kilometers of artificial islands, the Durrat Al Bahrain development will support 30,000 people.

With high oil prices, Mott sees opportunities in the United Arab Emirates in industrial, power and desalination sectors. But Stovell is unhappy about the speed of payments. "Cash flows can be slow," he says. And Saudi Arabia poses a new threat to personal security with foreigners being targeted for attacks, he notes.

With 10 new countries joining the European Union this May, investment in Eastern Europe is set to expand. The Czech Republic, Hungary, Slovakia and Poland are the main attractions for design firms, with Estonia, Latvia, Lithuania, Poland and Slovenia following. Cyprus and Malta also joined.

With around 250 staff in Eastern Europe, DHV has "a rather strong position," says Campen. "We started some 10 years ago....At that time there were [few] firms of our type in the market." Now, "the whole industry is present," he says.

"Great opportunities" are available, especially in Poland and Hungary, says Rémi Cunin, managing director of France’s Scetauroute. But he cautions that the EU allows new entrants to use their own languages in contracts, a potential difficulty. Before, contracts financed by the EU were procured through its headquarters in Brussels, in English.

Russia "is a country we are putting quite a bit of effort into," says Stovell. He see chances in the oil, gas and energy sectors, but the market "has got its challenges," including security, he says. "You have to be very careful about the type of business you are engaging in."

THE 2004 TOP 200 INTERNATIONAL DESIGN FIRMS AT A GLANCE
VOLUME      
 
DOMESTIC 
INTERNATIONAL 
TOTAL 
 
$BIL.
% CHG.
$BIL.
% CHG.
$BIL.
% CHG.
REVENUE
32.3
+0.9
21.0
+11.1
53.3
+4.7
PROFITABILITY      
 
NUMBER OF FIRMS REPORTING 
AVERAGE % OF 
 
PROFIT
LOSS
PROFIT
LOSS
DOMESTIC
131
24
8.5
NA
INTERNATIONAL
144
17
7.3
NA
PROFESSIONAL STAFF      
 
NUMBER OF FIRMS REPORTING 
AVERAGE % OF 
 
DOMESTIC
INTL.
DOMESTIC
INTL.
INCREASE
72
64
10.7
25.4
DECREASE
49
35
10.7
10.6
SAME
62
55
NA
NA
BACKLOG      
 
NUMBER OF FIRMS REPORTING
AVERAGE %
HIGHER
96
34.3
LOWER
33
18.3
SAME
47
NA
MARKET ANALYSIS  
TYPE OF WORK
REVENUE
$MIL.
PERCENT
OF TOTAL
BUILDING
2,436.8
11.6
MANUFACTURING
583.6
2.8
INDUSTRIAL
2,275.0
10.8
PETROLEUM
6.439.7
30.7
WATER
1,295.5
6.2
SEWER/WASTE
934.2
4.4
TRANSPORTATION
3,537.6
16.9
HAZARDOUS WASTE
736.8
3.5
POWER
1,565.4
7.5
TELECOMMUNICATIONS
127.4
0.6
OTHER
1,062.4
5.1
INTERNATIONAL REGIONS   
 
NUMBER
OF FIRMS
REVENUE
$MIL.
PERCENT
OF TOTAL
CANADA
63
1,217.3
5.8
U.S.
42
2,490.0
11.9
LATIN AMERICA
112
912.4
4.3
CARIBBEAN ISLANDS
75
331.3
1.6
EUROPE
151
7,101.0
33.8
MIDDLE EAST
130
2,046.6
9.7
ASIA/AUSTRALIA
162
4,863.1
23.2
AFRICA
113
2,028.2
9.7
OTHER
3
4.4
0.0