Things may be looking up soon for the construction industry. Engineering firms, widely seen as the bellwethers of the building industry, are showing gains in employment and in the number of their projects. The numbers posted by these outfits, which land contracts on new projects and begin the design work long before the construction industry breaks ground, are surprisingly good.
Things may be looking up soon for the construction industry. Engineering firms, widely seen as the bellwethers of the building industry, are showing gains in employment and in the number of their projects. The numbers posted by these outfits, which land contracts on new projects and begin the design work long before the construction industry breaks ground, are surprisingly good.
In a harbinger of happier times for building industry, twenty of the New York area's 25 largest engineering firms, reported increases in employment from 2010 to 2011, with 15 reporting an increase in their number of projects.
“I think engineering will see some uptick next year and this will translate into more construction projects much later in the year,” said Cyrus Izzo, co-president of Syska Hennessy Group Inc.
“I think engineering will see some uptick next year and this will translate into more construction projects much later in the year,” said Cyrus Izzo, co-president of Syska Hennessy Group Inc.
AECOM tops the list in terms of headcount, with 387 licensed engineers in the New York area, 32 more than it had in 2010. The company added 240 projects this year, bringing its total to 1,240.
Each of the area's top 3 engineering companies, including Parsons Brinckerhoff and Arup, saw increases in NYC area revenue, projects and employees this year.
Each of the area's top 3 engineering companies, including Parsons Brinckerhoff and Arup, saw increases in NYC area revenue, projects and employees this year.
AECOM's largest New York project is the Second Avenue Subway. A number of the other firms who made the list are also working on designs for big tunnel and bridge projects. That includes Weidlinger Associates Inc., which is hard at work on the Tappan Zee Bridge project.
Such public-sector projects have dominated the workload of local engineering firms in recent years, but in another sign of an industry turnaround, the balance may be shifting a bit. In 2009, most private-sector projects came to a grinding halt and the public sector was able to pick up the slack.
But in 2011, several firms reported a pickup in demand for private-sector projects. Syska Hennessy, for example, noted that 80% of its projects are now in the private sector.
But in 2011, several firms reported a pickup in demand for private-sector projects. Syska Hennessy, for example, noted that 80% of its projects are now in the private sector.
Overall, engineering firms have a positive outlook for the coming year. More than 60% of the 93 firms in New York that responded to The American Council of Engineering Cos. survey said are optimistic about prospects for 2012. Syska Hennessy recently completed its five-year strategic plan and expects to build on its New York market share in the commercial sector.
Source: Crain's New York Business
November 15, 2011
