For the second year in a row, Top 400 revenue rose by a double-digit percentage, rising 13.9% to $556.9 billion from $488.98 billion last year, while average company revenue also increased 10.9% to $629.5 million. Additionally, of the 375 companies that submitted surveys for both the 2024 and 2023 rankings, 77.3% reported more general recruitment revenue. But that’s down slightly from 78.9% in last year’s survey.
“Rising interest rates have made it difficult for some customers to get construction loans,” says Matthew Hott, CFO of Primus Builders. While that hasn’t reduced contractor No. 278’s backlog, he says the delays can affect the start of the project, “which can move financial activities from one year to the next in some cases.”
Inflation rates are still above the Federal Reserve’s target average, and some contractors are finding cost increases “a more manageable and predictable challenge than [they were] a couple of years ago,” says Anthony Johnson, Clayco’s executive vice president and president of its industrial business unit. For other contractors, the ability to manage this challenge depends on the company’s ability to adjust labor resources that are already tense.
As owners turn their attention to opportunities in lower-risk sectors, the top 400 revenue figures illustrate how contractors are keeping up with demand.
From 2022 to 2023, revenues increased in all sectors tracked by ENR, except for hazardous waste, which fell by 9.7%. The largest growth was seen in manufacturing (+74.8%), petroleum (+46.7%), sewer/waste (+38.8%) and water supply (+28.6 %). The manufacturing market in particular grew exponentially, with total general contracting revenue increasing 201% from 2021 to 2023. By 2021, 115 companies in the top 400 had at least some manufacturing revenue. By 2023, this number increased to 142.
Across the industry, the top 400 contractors say projects funded by the bipartisan Infrastructure Act, the Science and CHIPS Act and the Lower Inflation Act are also creating more opportunities. Despite an abundance of projects in some sectors, contractors say others are slowing because they need more commitment from owners to justify the risks.
In the multifamily residential building industry, Wieland CEO Edward Lorenz says the No. 318 company has seen many deals delayed or scrapped entirely because of higher interest rates. “These customers must rethink [return on investment] targets, or increase rents, and rents are already at record highs,” he says.
At Dallas-based MYCON, rising interest rates have reshaped the sector composition of its project portfolio as owners shift to sectors that will yield higher near-term returns.
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Of the 314 contractors that reported their profitability status, 97.5% said they made a profit domestically, while 97.1% saw a profit internationally. The average internal profit margin is 4%, up from 3.2% last year.
In addition, the top 400 contractors see constant pressure to keep projects profitable.
Turning to recent work, Clancy & Theys chairman Baker Glasgow says the firm, ranked 120th, faced challenges managing changing project schedules, supply chain disruptions and meet labor demands.
Still, even as the U.S. moves toward an energy transition with electric vehicles, the top 400 companies say there’s a steep technical learning curve for contractors to get electrical infrastructure and projects ready. manufacturing, and an even steeper schedule for owners looking for returns on investment.
Like many of the top 400 contractors, “the Inflation Reduction Act and the CHIPS Act have led to a wave of new projects” for Gray Construction, which ranks No. 40, says President and CEO Brian Jones. He adds that the firm sees “an increase in projects related to electric vehicles, solar panels and semiconductors emerging.”
To reduce risk and build more predictability into projects, Jones says Gray has developed a preconstruction phase, which includes multiple value engineering sessions that are “deliberate” and a “collaborative” engagement of all project stakeholders. project to determine the best value solutions. “Understanding our customer’s decision. The manufacturing process is key to our preconstruction strategy,” says Jones.
The articles
General Building
Construction begins on a new health center in Texas
The El Paso Veterans Care Center will reflect the natural landscape that surrounds it
The design and construction team of Clark Construction Group and SmithGroup + HKS Joint Venture broke ground in August on the El Paso VA Health Care Center at Fort Bliss, Texas.
Read more —>
Transportation
Planned slideshow of the Pittsburgh Bridge
The aging structure will be replaced using accelerated construction techniques
It is being built to replace the Commercial Street Bridge, an 861-foot-long open concrete arch structure that rises up to 85 feet above Nine Mile Run and Frick Park in Pittsburgh, Pennsylvania.
Read more —>
power
Mississippi builds first large solar storage complex
Tech giant Meta will also gain power from a 550 MW project to support two data centers under agreement with TVA
Work has been completed on the first project of a planned 550 MW three-part solar power generation complex in Mississippi’s Golden Triangle region that also includes record battery storage capacity at state
Read more —>
Oil and Gas
Orphan well cleanup gets $775 million from feds
The US Department of the Interior is advancing a new round of funds to 21 energy-producing states
Also, the Golden Pass LNG terminal in Texas is asking the feds for more time to finish the $11 million three-train megaproject, citing on-site unrest this year that led to layoffs, cost overruns, delays and a contractor walkout main Zachry Group.
Read more —>
environmental
Water recycling grows in the era of drought
San Diego is making progress on a major drinking water purification program
Shimmick Construction Co. is general contractor on a $373.8 million design-bid-build contract for San Diego’s North City Pure Water Facility and Pumping Station, a 30-million-gallon-per- day that is part of the Pure Water San Diego. Program
Read more —>
Manufacturing
The electric vehicle battery plant is nearing the start of production
Turner and Yates are building Panasonic Energy’s $4 billion Kansas facility
Panasonic Energy Co.’s electric vehicle battery plant. $4 billion in De Soto, Kan., is taking shape with a goal of starting production early next year.
Read more —>
Jonathan Keller is ENR’s associate editor for business surveys and rankings. He works on ENR’s Top Lists, collecting, cleaning and analyzing data. Jonathan has a background in data analysis, freelance writing, and tragic sports fandoms. A Buffalo native (and therefore a Bills and Sabres fan), he now lives in New York City.