ENR 2024 Midwest Top Contractors: Midwest Contractors Post Strong Growth in Revenue in 2023
The 84 firms surveyed in ENR Midwest’s Top Contractor survey reported more than $66.9 million in total revenue
On the site of J.L. Hudson’s flagship store in downtown Detroit, Barton Malow Is building a mixed-use development with more than 1.5 million sq ft of office, residential, food and beverage, event and parking space.
Photo courtesy of Barton Malow
Related Link:
ENR Midwest 2024 Top Contractors
Not even high interest rates, inflation and ongoing labor and material shortages are keeping contractors down in the Midwest. The 84 companies that participated in ENR Midwest’s Top Contractors survey reported more than $66.9 billion in total revenue across the 11-state region in 2023, exceeding the $52.9 billion reported in 2022 by 81 firms and the $50.3 billion reported in 2021 by 96 firms.
Contractors say having a pipeline of diverse projects and focusing on hot sectors—including mission critical, health care, higher education and sustainable energy—are helping them thrive despite the challenges.
Chicago-based Clayco, which tallied $5.78 billion in revenue for 2023, up from $5.38 billion in 2022, reports a range of projects in different sectors.
“Clayco has been fortunate to have many significant projects in diverse market sectors throughout the Midwest, including aviation work in Chicago and Fort Wayne, Ind.; a multifamily high-rise in Chicago; high-tech and life science manufacturing projects in Indiana; along with confidential data centers in Indiana and Illinois, among others,” says Anthony Johnson, president of Clayco’s industrial business unit.
Chart by ENR
Mission Critical Work Fuels Growth
He cites the company’s mission critical work supporting cloud computing and artificial intelligence expansion as well as advanced manufacturing and automotive manufacturing segments as fueling the company’s revenue growth.
“The mission critical expansion is driven by both the exponential growth of computing needs and cloud storage in our economy as well as the advent of perhaps the most dynamic economic impact during our lifetime—artificial intelligence,” he says. “The high-tech and manufacturing segment growth continues to be fueled by the on-shoring of manufacturing and semiconductors as well as the growth of electric vehicle productions and the associated supply chains.”
Rising 314 ft, 220 North Ada, a residential tower, is replacing a one-story warehouse in Chicago.
Photo courtesy of Clayco
Detroit-based Barton Malow cited a variety of projects for its success. The company reported $5 billion in revenue for 2023—a record for the 100-year-old company, which had nearly $3.03 billion in revenue in 2022.
“Supply chain disruptions, increased material costs and labor shortages in recent years happen often.”
—Sean Hollister, Vice President, North Central Business Unit, Barton Malow
Barton Malow is continuing construction on the University of Missouri Health Care’s Children’s Hospital with their partner PARIC Corp. and is also working on a major medical campus for Henry Ford Health in Detroit.
“We’re currently finishing up a few lithium-ion battery manufacturing plants for electric vehicles, which have represented a large portion of our business over the past several years,” says Sean Hollister, vice president of Barton Malow’s North Central business unit. “We also continue to see significant activity in sports and entertainment, higher education and health care.”
Another firm reporting a good year was St. Louis-based McCarthy Building Cos., which tallied $1.61 billion in revenue in 2023, up from $1.31 billion in 2022.
“Business has been robust over the past year, particularly in the Midwest, where some major projects under construction include a 97-acre campus for the National Geospatial Intelligence Agency (NGA) and a 16-story patient care tower at Barnes-Jewish Hospital in St. Louis as well as the 800-MW Double Black Diamond Solar Project in Waverly, Ill., one of the state’s largest solar projects,” says Ryan Molen, senior vice president of operations in the Central region.
McCarthy is overseeing the design and construction of the 16-story Barnes-Jewish Hospital in St. Louis.
“The health care sector is expanding rapidly due to an aging population and the continuous evolution of medical technology, necessitating new and upgraded facilities,” Molen adds. “Renewable energy is also on the rise as both public and private sectors commit to reducing carbon footprints and transitioning to sustainable energy sources.”
He also sees significant investments occurring in battery storage, solar and other renewable infrastructure projects, reflecting the need to improve and diversify power sources to be more environmentally friendly and sustainable.
Even with their successes, contractors are facing hurdles, including pauses and changes in projects.
Chart by ENR
“These pauses are often due to lapses in funding, whether from private sources, developers or changes in government funding. The rapid pace of change reflects the dynamic nature of the construction and development landscape," Hollister says.
Unexpected changes have ripple effects that contractors also must address.
“Unpredictable changes make it difficult for firms to get what they need, when they need it,” Hollister notes. “Supply chain disruptions, increased material costs and labor shortages in recent years happen often, and mitigating these are among the most important roles of the contractor.”
