Balancing Regional Risks

With a portfolio of projects in Bangladesh, which is prone to flooding, and in Kazakhstan and Mongolia, which have extreme continental climate conditions—Orsini says designing a climate resilient infrastructure has become a “prerequisite” in all IRD Engineering projects.

“The impact of extreme climate events poses an expensive hazard in terms of degradation, necessary maintenance and decrease in lifespan,” he says. “For us as engineers, this is a reality that cannot and should not be ignored at the design and construction phases.”

Multidisciplinary professional services giant GHD adds that it is using building performance data to identify less carbon-intensive or zero-waste fittings and materials.

“We have certainly seen a growing demand for sustainable approaches and climate change risk mitigation,” says Jim Giannopoulos, CEO of the firm ranked at No. 21.

Although some clients may not directly be concerned about the regional effects of climate change, a global push for better building occupant health has had significant implications on project goals, explains Ammar Al Assam, CEO of UAE-based Dewan Architects + Engineers, at No. 93 on the list this year.

---

GET STARTED

---

“Building occupants are increasingly empowered to demand transparency in energy efficiency and accountability in designing safer spaces,” says Al Assam. “As a result, unsustainable buildings are now considered a significant risk due to increased operational costs, unforeseen liabilities, reputational damage and potential loss of access to certain customers.”

Owners must emphasize health, well-being, energy efficiency and other green building requirements to “future-proof their investments and enhance the value of their properties for buyers,” he adds.

Building Regional Resources

With project cost, climate change has become a factor that firms must balance to keep projects profitable, explains Arcadis Chief Growth Officer Edel Christie.

“Failure to take account of impact of climate change in infrastructure design, maintenance and operation will cause an accelerated deterioration and higher maintenance costs,” says IRD’s Orsini. Amid increased capital costs and supply chain challenges, project timelines are more critical than ever, Christie adds.

“Global energy costs and increasing demand for resources are driving the focus on asset efficiency and sustainability and the need to decarbonize,” she says. “This is all on top of the need to ensure service reliability and resilience in light of changing environmental conditions.” As a result, owners are leaning on design firms to increase asset performance within tighter budgets. But addressing such challenges often are not a one-size-fits-all solution, according to Top 225 firm executive comments.

“Although climate change presents challenges, it has also driven innovation in building design.”
Abdelaziz Fahmy, President, EHAF Consulting

For Egypt-based EHAF Consulting, President Abdelaziz Fahmy says the No. 60-ranked firm is addressing climate challenges in Egypt and the Middle East with “tailored strategies”—such as heat mitigation through architectural designs, improved air filtration and sealed structures, and ensuring cultural sensitivity by incorporating local traditions and practices.

“Although climate change presents challenges, it has also driven innovation in building design focusing on sustainability, occupant health, and well-being,” says Fahmy. “Owners in Egypt and the Middle East are increasingly prioritizing these aspects, and recognizing the long-term benefits for both the environment and human health.”

Over several decades, Padeco Co. says it has built a global partner network that has been crucial in the success of its international projects.

“We have many trusted associates in various countries who work close with clients, including local government agencies,” says Christopher Rose, director and general manager. “Their knowledge of local conditions and the inclusion of skilled local personnel in our project teams are key factors in smooth project implementation.”

Global Market Growth

Overall, revenue for the Top 225 International Design Firms is up 12.7%. A portion of that increase can be attributed to the return of TechnipEnergies to the list, which added $2.08 billion. Without Technip, Top 225 revenue increased 9.9%.

Median revenue was $59.8 million in 2023, up 27.5% over last year. Of the 214 firms that filed surveys this year and last, 75.2% reported higher revenue. The increase is slightly up from the equivalent number last year, but 55.1% saw revenue rise 10% or more.

Related to how inflation and shifting economic conditions have affected the types of projects they take on, Top 225 firms shared that some sectors have been more vulnerable to economic conditions than others.

“In 2023 … we grew by over 16%, and all of that was organic,” says James Harris, executive chair of U.K.-based employee-owned Mott MacDonald Group. With U.K. growth exceeding 20%, “it’s a really important market for us,” he says. The firm ranks No. 16 this year.

While not expecting such U.K. growth levels to continue, Harris says he sees “ no reason to be pessimistic.” New government officials elected last month are “talking good sense. They have a plan, it’s a long-term plan,” he adds.

While transportation accounts for 40-45% of the firm’s global business, that demand in the U.K. is softening, partly because of the previous government’s cancellation last October of the Birmingham-Manchester HS2 high-speed railroad section.

Mott MacDonald Group’s many project staffers were redeployed without losses, many to the burgeoning U.K. water sector, says Harris. That reliable and regulated sector provides “real resilience,” he adds.

As much as inflation and economic shifts have posed challenges, SSH CEO Matt Squires says the firm is also adapting its strategies and focus to resilient sectors and regions.

“This approach helps us navigate economic uncertainties and continue delivering value to our clients,” he says, adding that the last 12 months have been a “remarkable period” for the firm.

“With a clear focus on protecting and positioning the business for growth in our chosen markets, we consciously avoided pursuing low-quality revenue during the leaner periods,” says Squires. Instead the firm directed its efforts to making its delivery model more agile to meet owners’ needs.

“Central to our success has been our commitment to growing our knowledge and intimacy with our clients to understand how we can support their development objectives,” says Squires. “As a result, SSH has achieved the highest quality revenue intake in its long history.”

Urban Planning | By Jonathan Keller

A 500-Acre Garden Grows in Cairo

Rendering by DLR group, courtesy of EHAF Consulting Engineers

EHAF Consulting Engineers (No. 60) provided design, project management and construction supervision services on the Telal Al-Fustat Central Park project in Cairo, Egypt, which is part of the broader redevelopment of the city’s Al-Fustat area, which had fallen into disrepair. The 500-acre park will connect Cairo landmarks such as the Museum of Egyptian Civilization and the Amr ibn al-Aas Mosque. Rising groundwater posed a serious threat to the extensive archaeology of the area, so a treatment plant was added to recycle the water for irrigation.

Regional Hot Spots

The largest revenue increases for Top 225 firms were seen in the Middle East, up 30.4%; Africa, up 28.4%; and Latin America, up 23.8%. The Middle East region is at its highest total since 2018, with many firms attributing that growth to Saudi Arabia’s Vision 2030.

“Saudi Arabia continues to offer the greatest opportunity,” adds Squires. “With our growth path that started six years ago … we have increased our investment and commitment toward this key market and positioned SSH as a partner of choice, supporting clients in delivering their exciting program of works.”

For Top 225 firms, however, Asia revenue fell 7.4% in 2023, with Australia/Oceania down 1.7% in revenue. All geographic markets had generated higher revenue for firms between 2022 and 2023.

For Royal HaskoningDHV, ranked No. 37, growth has been sector specific: water management, manufacturing and logistics, and renewable energy and decarbonization of industry, says CEO Marije Hulshof.

“Our success in the international market is driven by our focus on carefully selected global markets where our knowledge and experience are truly differentiating,” she says.

Overall, the largest increases for Top 225 firms were in the manufacturing sector, at 32.5%; industrial process, 29.9%; and petroleum, 26%. Much of the growth in petroleum comes from the return of TechnipEnergies to the list.

A total of 192 firms filed backlog data on this year’s survey, with 69.3% reporting it to be higher than one year ago but down from 74.1% reporting higher backlog on last year’s survey. The Top 10 firms combined make up $41.5 billion, slightly over 50% of the total. About 93.9% of firms that reported their profitability status said they made a profit in 2023.

Samoo Architects & Engineers CEO Sohn Chang-Kyu says the No. 99-ranked firm has been broadening its business horizons beyond the realm of traditional architecture and into sustainable materials.

“Society and technology are undergoing rapid change. Nevertheless, the evolution of the spatial environment is stagnant and shows many limitations in its ability to reflect the needs of diverse users and future technologies,” he says. “This is why innovation beyond the limitations of existing materials is necessary.”

Shift to Sustainability

Amid global demand for more sustainable buildings and structures, Top 225 firms say the effort to minimize environmental impact while promoting occupant well-being is a balancing act.

“This demand fuels our work in creating green, energy-efficient urban spaces that integrate seamlessly with their environments,” says Sean Chiao, Surbana Jurong Group CEO, who explains that the firm has been on a mission to develop a “future-forward stance on sustainability through urban development.”

He adds, “What traditional approaches to sustainability might miss are opportunities to look at how cities can be a force for good. We see how cities and communities can be designed to actively restore the planet, empower people, and generate prosperity.”

Pacific Consultants Co. Vice President Koichiro Shibazaki says the firm has also seen a focus on reducing carbon output at a supply chain level.

“We have seen that supplier pre-qualification questionnaires and requirements from clients are placing more and more importance on environmental and carbon management policies, health and well-being, safety management, universal designs and diversity,” he says.

As a result, Top 225 firms say investments in third-party accreditations and certifications such as LEED and BREEAM have become key in guiding owners to minimize the carbon footprint of projects while adding value to their bottom line.

“These certifications add significant value to project design by ensuring that buildings and infrastructure are developed with a strong focus on reducing environmental impact, enhancing energy efficiency and creating healthier environments for occupants,” says TPF Deputy CEO José Santos. The Belgium-based firm is ranked No. 48.

“Owners are increasingly focused on understanding the carbon impact of their projects and are investing in strategies to minimize these impacts,” says Santos. “This heightened scrutiny is driven by a growing awareness of the environmental footprint of construction activities and the urgent need to reduce carbon emissions.”

Health Care | By Jonathan Keller

Dubai Gains a New Cancer Center

Rendering courtesy of Stantec | OOEE Studio

Stantec (No. 7) is designer of the Hamdan Bin Rashid Cancer Hospital in Dubai, United Arab Emirates (UAE). The design is inspired by the Ghaf, national tree of the UAE, which often possesses a gently twisting geometry, according to the firm. The 603,000-sq-ft facility will be the first comprehensive cancer care facility in the UAE, with 50 clinics, 30 clinical trial areas, 60 infusion rooms, 10 urgent care rooms, 5 radiotherapy rooms, and 116 inpatient beds. The hospital is also designed to meet LEED Gold and WELL building standards.

Technology Transformation

As a consulting firm, AMG Al Amar Consulting Group believes BIM technology utilization has had the greatest impact on project quality and timing, says president and CEO Wahid Michel. “This also facilitated the online communication between working from home country and abroad,” he says, particularly with technologies developed and used aggressively since the COVID-19 pandemic, he adds.

Yet Top 225 firms overwhelmingly stated that artificial intelligence was the technology that was poised to have the biggest future impact on the international design market.

“Successful international project delivery relies on trusted local design and trade partners to ensure compliant local project delivery. ”
John Brophy, Manager, PM Group

“Unsurprisingly, AI continues to be a trend that will impact our industry over the next decade,” says Stantec President and CEO Gord Johnston. The technology, paired with other digital tools, has driven project delivery and efficiency.

Stantec’s Flood Predictor tool uses generative AI to produce better flood maps and models for communities to anticipate when and where flash floods may occur, he points out. As a result, users can make more informed decisions as to where to build homes, businesses or even large infrastructure projects to minimize impact from weather events.

The No. 7-ranked firm also recently announced a partnership with AltaML and Microsoft to develop an AI-powered coastal flood model that will be integrated into Flood Predictor.

“Stantec has reinforced our commitment in this area with the development of our AI task force and appointment of its chief technology officer, Shankar Kalyana,” adds Johnston.

Pini Group predicts that the integration of artificial intelligence and machine learning into construction processes will be the “most disruptive trend over the next decade,” says Chief Technology Officer Davide Merlini. “For several years we have had our own innovation department, which has been monitoring trends in the market and importing what can be useful to make work more efficient,” Merlini says. “However, this is integrated into a broader concept of a culture of innovation, which, in turn, we are trying to push among our employees.”

Surbana Jurong’s Chiao also named AI as a key technology for project management and design optimization for real-time project monitoring and collaboration.

“We’re partnering with leading technology providers, such as Autodesk and Bentley Systems, to access advanced tools and expertise in the AEC market as well as broader solution providers like Microsoft and Amazon Web Services for access to cloud and AI services,” says Chiao.

Prioritizing Collaboration

Behind nearly every technology is the ability to improve collaboration and streamline design services, say Top 225 firms.

“We are already deploying many new technologies: augmented reality devices on site to improve quality and avoid costly re-work; digital platforms giving real time progress and cost reporting; more automation and system integration,” says PM Group’s John Brophy, Group Business Development Manager. Yet above all, Brophy says the firm’s track record with its regional partners has helped propel it forward.

“Successful international project delivery relies on trusted local design and trade partners to ensure compliant local project delivery,” says Brophy. “Above all, we focus on key clients with a track record of collaboration and partnership with shared project goals.”

Aurecon CEO William Cox pointed to its tunnel data management system as an example of software-as-a-service platform for its clients in tunnel construction. “The system is designed to collect and centralize a wide range of tunnel construction and instrument monitoring information,” he says.

Cox explains that there is a requirement in some jurisdictions to capture and publish the information into a central system as part of a tunnel project execution, which enables it to meet regulatory requirements as needed.

As quickly as new technology is being adopted, “how we integrate digital technologies, such as AI and digital twins, into architecture and construction, and how environmentally sustainable these integrations are, is of utmost importance,” says Samoo’s Sohn. “The integration of architecture and digital technology with sustainability will be the most disruptive trend.”

Understanding how design and technology can be used in tandem continues to be the “biggest challenge and opportunity for our industry.” adds GHD’s Giannopoulos.

“Without new infrastructure, such as energy generation, storage and public transport, we cannot achieve global climate goals,” he says. “At the same time, we need to do more to make construction itself more sustainable with greener materials, less waste and more efficient processes.”

Emphasizing that its technology strategy “has always been cloud-first,” SSH CEO Squires says “this culture has enabled [it] to be at the forefront of digital transformation, accelerating design and project delivery” by using the power of the cloud. Using tools such as design collaboration, model coordination and cloud work-sharing capabilities “has enabled us to break down silos and connect design teams across different countries.”