Overall construction activity in ENR’s Texas and Louisiana region has been robust over the past few years, with numerous sectors contributing to the overall increase.
According to survey information sent to ENR of specialty contractors working in the states of Texas, Louisiana, Arkansas, Mississippi and Oklahoma, 2023 was a busy year. Feedback provided by some of this year’s ranked companies indicates that specialty contractors in the region should continue to find plenty of business opportunities moving forward into 2025.
For example, in the Top Specialty Contractors survey sent to ENR Texas & Louisiana, Cummings Electrical, which ranked 14th overall with $219.6 million in regional revenue, noted that: “We had a year-on-year growth of 46.6% from 2022-2023, with a broad portfolio of work supporting expected future growth of over 50% by 2024.”
Graph by ENR
Rosendin Electric, fourth overall this year with $560.67 million in regional revenue by 2023, noted that business activity “throughout the Texas region catapulted in 2023,” with a number of contract awards of projects in the biomedical, transportation, semiconductor and mission critical markets. This revenue total represents an increase of approximately 8% over last year, when the company reported regional revenue of $518.68 million.
First ranked Primoris Services Corp. is delivering the Leeville to Golden Meadow portion of the LA 1 project in Louisiana.
Photo courtesy of Primoris Services Corp.
A look at the numbers
A detailed view of the revenue totals submitted to ENR Texas & Louisiana provides specific information on the busiest market sectors in the region.
For example, the top 15 companies on the Prime Specialty Contractors list reported a strong total revenue figure of $7.78 billion for 2023 revenue, up 17% from the same period a year ago.
“We trust the industrial development of the Gulf Coast, as well as the public infrastructure projects.”
—Brandon Ashley, Senior Vice President, Five-S Group
Total revenue for the 50 companies on the list showed even stronger growth, up 25% to $10.24 billion in 2023. This follows equally strong growth in 2022, when total reported revenue rose 27% with respect to the 2021 numbers.
Average revenue per company is similar, but slightly weaker, with growth of 17% in 2023 and 16% in 2022. Combined, this represents average revenue growth of more than 36% from 2021, suggesting strong sustained growth in the five states of Texas. and Louisiana region.
Electrical contractors who responded to this year’s survey collectively reported massive growth, with more than $2.5 billion in revenue by 2023, up 69% from the $1.49 billion in revenue reported a year ago year Utility procurement revenue also saw significant growth, up 32% to $1.33 billion by 2023.
However, some specialized sectors experienced a decrease in income. Mechanical and plumbing revenue fell 34%, from $1.12 billion in 2022 to $744 million in 2023. Concrete revenue also saw a significant 20% drop between 2022 and 2023.
The Comite River Diversion Channel project in Louisiana was one of Five-S Group’s recent major projects.
Photo courtesy of Five-S Group
looking ahead
In general, specialist recruitment firms that provided perspective on future market conditions are seeing many opportunities ahead. Brandon Ashley, senior vice president of Sixth Group Five-S, Baton Rouge, La., is one of them.
“Five-S’s target markets and opportunities in our Gulf Coast service area are very bullish going into 2025,” he says. “We are confident in the industrial developments of the Gulf Coast, as well as in the public infrastructure projects in this region.”
Ashley also notes that LNG export capital projects, data centers and coastal preservation efforts will likely provide opportunities for Five-S in 2025.
Tom Ward, vice president of Keystone Concrete, which ranks third this year with $682 million in regional revenue, is also optimistic about 2025.
Graph by ENR
Overall, Ward reports that Keystone’s “2025 outlook is hopeful, [and] we continue to maintain a strong portfolio” with the medical and institutional market sectors promising to increase activity.
At the same time, Ward says, “The market challenges for Texas/Louisiana are difficult to comment on until the president is selected. Oil and gas could have more of an impact depending on who it is.”
ENR Texas & Louisiana invites readers to review this year’s regional specialty contractor rankings for more information.
