Rising materials prices coupled with aggressive bidding in a down economy have raised concerns that a new wave of contractor defaults may be on the horizon. While the contracting community proved more resilient during the downturn than some had predicted, many firms that bid aggressively in recent months and slashed profit margins face considerable hardships as prices for materials and consumables continue to rise. Related Links: Economics: Japan Quake Won�t Shake Up Costs as Recession Trumps Rising Prices Confidence Survey: Top Industry Execs Believe the Market Has Turned a Corner Asphalt: Weak Demand vs High Oil Prices Executive Compensation: Companies
Heading into the summer bargaining season, the goodwill created between New York City contractors and construction unions during landmark labor negotiations in 2009 appears to be spent. Labor bosses are crying foul over an employer campaign aimed at reducing the gap between union and open-shop rates. Photo: For ENR By Michael Falco New York building firms’ rep Coletti (left) and union head LaBarbera in 2009 after inking pact to cut costs. Relations now are strained. Rather than working exclusively with union trades representatives, the Building Trades Employers’ Association, which represents about 1,700 contractors citywide, is reaching out directly to rank-and-file
Regular readers of Engineering News-Record are familiar with the big names in the construction industry that lead off our annual “Top” lists of firms ranked by revenue.
With the premier issue of the new ENR New York, we are excited to introduce our “Top 20 Under 40.” It showcases exceptional players in the region’s A/E/C industry and takes its place alongside our traditional rankings of contractors, designers and projects.
As many western economies continue to struggle in the wake of the recession, top companies in the environmental sector are expanding their global reach through a mix of organic growth and aggressive acquisitions. Within the water and wastewater sectors, competition has been particularly fierce, as firms look to narrow the bidding lists through consolidation and capitalize on emerging economies. Photo: Courtesy of Black & Veatch Work in the United Kingdom is starting to ramp up again with new projects such as the $150-million expansion of the Mogden Sewage Treatment Works in west London by Black & Veatch. Related Links: Overview:
Global firms are looking to strike a delicate balance in the unsteady vertical building market. Some regions are recovering from the global recession, while many parts of the world continue to struggle. Although public spending has helped prop up some markets, governments are now reining in expenditures, leaving designers and contractors fighting for limited opportunities in the private sector to help fill the void. Photo: Courtesy of Skanska The Nya Karolinska Solna Hospital is the largest PPP hospital project in the world, Skanska says. Related Links: Overview: Finding Work in Tough Times View Complete Global Sourcebook with Rankings Transportation: Asia
Federal agencies are gearing up to deepen their commitment to the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system heading into 2011, despite some criticism of its effectiveness. During the Ecobuild America conference, held Dec. 6-10 in Washington, D.C., representatives from several agencies touted their green agendas. The U.S. General Services Administration, the largest federal landlord, continues to stay out front as a champion of LEED ratings. In October, GSA announced that LEED Gold certification would be the minimum requirement for new federal building construction and renovation projects starting in fiscal 2011. Projects in design
The construction market has yet to see signs of recovery from the current recession, but it’s coming next year, according to a forecast released by McGraw-Hill Construction.
Poor management of available resources at the Virginia Dept. of Transportation resulted in $877 million in transportation funds left unspent during the last two fiscal years, says an independent audit commissioned by Virginia Gov. Bob McDonnell (R).
Work on military bases and other public projects has kept many Maryland contractors busy during the recession. “Our area has always done better than others, but we are still on the downslope with government work,” says John Barotti, senior vice president of Skanska USA Building in Rockville, Md. “If you look at the forecast for the next year, I don’t see as many projects as in the past.” Barotti adds that the Base Realignment and Closure and Army Transformation projects are winding down. “There is still a lot of work associated with the BRAC realignment aftereffects,” adds David Birtwistle, vice