The firm opened the North Tarrant Extension project in Fort Worth in October, almost nine months ahead of schedule. "Such success demonstrates the value that can be realized in a DB contract, in this case as part of a PPP," Filer notes. "In less than 12 months following that early opening, we will open early the LBJ Express project in Dallas. Together, these two projects represent $3.5 billion in construction occurring at the same time in the same general market, Dallas/Fort Worth."
Filer adds that the megaproject pipeline seems to be constricting, "but there will be an infusion of funding over at least the next 36 months. This additional funding, if managed properly, should be good for the industry for 2016 and beyond," he says.
"Megaprojects have all been delayed to some extent for various reasons. This may be a mixed blessing, as it helps alleviate logjams in fabrication shops, rental equipment and particularly shortages of key craft labor," says Roland Toups, chairman and CEO of Turner Industries Group LLC. "Labor-demand curves have smoothed out, which will help to decelerate wage pressures, which have already been steadily increasing."
Toups adds, "We firmly believe that megaproject failures, jobs that have gone beyond schedule or experienced significant overruns, were victims of poor front-end scope and design."
Baton Rouge-based Turner Industries, which has topped ENR Texas & Louisiana's annual Top Contractors ranking since 2011, was again in the No. 1 spot in this year's ranking with regional revenue totaling $2.37 billion for 2014. The firm posted a $160-million gain in 2014 over the previous year.
Turner "had a solid year in all divisions in 2014," says Toups, "This new year has started aggressively, and results through six months of 2015 have exceeded the first six months of 2014. However, it is premature to accurately forecast year-end results in these uncertain and volatile times."
The firm is improving or upgrading facilities and equipment in all locations, Toups says. "Our contract maintenance and turnaround divisions are steady and growing. Pipe fabrication, equipment and rigging divisions are heavily dependent on the overall construction market."
Toups adds that he remains "cautiously optimistic that market share will be maintained and strengthened in 2016/2017 and reflected in the positive bottom line financial results."