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(ENR) 2021 Top 500 Design Firms

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(ENR) 2021 Top 500 Design Firms Overview p. 40 // Profitabilit p. 40 // Top 500 Volume p. 40 // Backlog p. 40 // Markets’ Share of Total Revenue p. 41 // Domestic and International Staff Hiring p. 41 // International Market Analysis p. 42 // Past Decade’s Design Revenue p. 42 // Ardurra’s Calm Through the Storm p. 43 // Top 20 Design Firms by Sector pp. 44-46 // Top 50 Designers in International Markets p. 47 Gensler’s “Lotus Crown” p. 47 // Top 100 Pure Designers p. 48 // Designers Rising High p. 49 // Top 500 Dialogue p. 50 Barr Helps Bemidji Clean Up p. 51 // How To Read the Tables p. 51 // Top 500 Design Firms List p. 52 // Where To Find the Top 500 p. 65 NUMBER 112 NUMBER LOCKING THE KEYSTONE Alfred Benesch & Co. is design fi m for the Illinois I-74 reconstruction, a $1.2-billion project that will include construction of nine bridges. PHOTO COURTESY OF CHAD BAY, ALFRED BENESCH & CO. & BENESCH ALFRED BAY, CHAD OF COURTESY PHOTO Designing for the New Normal The ENR Top 500 Design Firms spent 2020 adapting to a pandemic. How will they evolve to take on what comes next? By Jonathan Keller enr.com April 26/May 3, 2021 ENR 39 0426_Top500_Intro_2.indd 39 4/20/21 4:35 PM here are dates that stick in the collective memory: 1776, 1861, 1929 and now 2020, which could well be a year that future generations in the construction industry look back on as a major turning point. The social, economic and cultural ramifications of COVID-19 won’t be fully Tunderstood for years to come, but the challenge of the pandemic has caused rapid change across the design sector. Even so, the revenue shortfall many observers had pre- total. The median revenue for firms actually fell, to dicted for design firms has not happened to the extent $64.95 million on this year’s ranking from $67.94 feared, according to results of the 2021 Top 500 Design million for the 2020 list—a drop of 4.4%. Backlogs Firms ranking. The aggregate revenue for listed firm took the biggest hit. Almost three times as many actually rose to a record $104.77 billion in 2020—an firms are reporting a lower backlog compared to a increase of 1.48%. year ago, with 127 noting a decline this year versus However, the raw numbers don’t tell the whole just 45 on the 2020 ranking. story. The 2021 list features the return of Fluor A notable absence this year is KBR Inc., which opted Corp., which was unable to release financials for last not to file a top design firms survey for its 2020 results, year’s ranking due to a federal probe of project due to its “current business profile as a high-end solu- charges; and Worley, which failed to file in 2020. tions-oriented organization,” the company told ENR. Their inclusion added more than $6 billion to the KBR was ranked third on last year’s Top 500 list. 2020-2021 at a Glance TOTAL REVENUE NUMBER OF FIRMS VOLUME NUMBER OF FIRMS HIGHER $104.8 DOMESTIC REPORTING PROFITABILITY REPORTING 206 PROFITS $ BILLIONS 419 SIZE OF BACKLOG DOMESTIC INTERNATIONAL REVENUE PROFITS $87.1 78 SAME 102 INTERNATIONAL DOMESTIC REVENUE LOSSES LOWER INTERNATIONAL $17.7 18 LOSSES 127 10 COMPARING THE PAST40 DECADE’SENR April 26/May 3, 2021 enr.com DESIGN REVENUE $85.06 $90.24 $92.69 $92.31 $91.81 $92.84 $93.90 $101.16 $103.24 $104.77 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $ BILLIONS SOURCE: ENR 0426_Top500_Overview.indd 40 4/20/21 4:56 PM OVERVIEW 25.4% TRANSPORTATION 24.3% Markets’ Share of BUILDING $26,622.3 Total Revenue $25,492.8 9.4% $ MILLIONS PETROLEUM $9,881.6 8.4% HAZARDOUS WASTE 8.0% $8,834.5 5.7% 6.9% POWER SEWER WATER $8,387.4 AND WASTE 1.9% 4.0% $7,196.4 MANUFACTURING 3.9% OTHER $5,926.9 $1,990.0 2.1% INDUSTRIAL $4,165.4 TELECOM $4,046.4 $2,222.2 (MEASURED IN PROFESSIONAL 187 INCREASE PROFESSIONAL 19 INTERNATIONAL FIRMS REPORTING) A DOMESTICNew Way to Work STAFF HIRING 154 DECREASE STAFFficult,” HIRING says Nick Leahy,35 co-CEO of Perkins Eastman. At the beginning of the pandemic, firms were forced Kumar Buvanendaran, president and CEO of Prime 113 STAYED THE SAME 28 SOURCE: ENR to make what was for many a radical change in the way 477 AE Group, adds that “COVID-19 has probably had Top 500 Firms 25.4% they worked. “Like most practices, we took our op- more permanent psychological changesTRANSPORTATION in our opera- also sent in a 24.3% erations virtual over a weekend,” says Jenna Knudsen, tions than tangible.” He saysBUILDING COVID-19$26,622.3 forced a “cul- survey last year CO Architects’ managing principal. “We went from tural reset” at the firm. “We$25,492.8 are reminded of what 95% of our staff working in one office space to 120 matters most—the safety, health and happiness of our people working from 120 different locations.” At first 58.1% employees,” the executive points out. the challenge was technological. While some of CO’s Report revenue Firms worked to ameliorate the effects of the pan- operations were digital, others such as accounting were rose between demic on employees’ physical and mental health via out- paper-based, and had to make a rapid transition. 2019 and 2020. reach. “Normalizing9.4% the conversation and reducing the “This$ MILLION hasS been one of the fastest technology trans- stigma around mentalPETROLEUM health is crucial,” says Steve Deme- fers in my career,” says Jerry Holder, Garver’s senior triou, Jacobs’ chair$9,881.6 and CEO. During the pandemic, the vice president and director of transportation. “Many firm launched8.4% its Mental Health Matters resilience pro- firms had no intention of making such a transition [but] 18.7% gram,HAZARDOUS which features live webinars on relaxation, coping WASTE 8.0% they adapted at a surprisingly fast rate.” Report revenue mechanisms$8,834.5 and physical health. However, it quickly became apparent that the real5.7% fell by6.9% 10% or POWER The program is an offshoot of Jacobs’ Mental Health SEWER WATER $8,387.4 challenge of the pandemic was less about the technolAND WASTE- more between Matters effort, which created 1,900 trained mental 1.9% 4.0% $7,196.4 ogyMANUFACTURING and more about the people.3.9% Firms neededOTHER to $fin5,926.9 2019 and 2020. health “champions” throughout the global organization. a way to$1,990.0 do business2.1% while helpingINDUSTRIAL employees$4,165.4 deal with “We equipped our Positive Mental Health Champions $4,046.4 the stress and isolationTELECOM of a pandemic. “It was the col- with materials to assist employees with COVID-19-re- $2,222.2 laborative, human connection side of it that’s very dif- lated mental health concerns,” Demetriou says. PROFESSIONAL PROFESSIONAL (MEASURED IN 187 INCREASE 19 FIRMS REPORTING) DOMESTIC INTERNATIONAL STAFF HIRING 154 DECREASE STAFF HIRING 35 113 STAYED THE SAME 28 SOURCE: ENR enr.com April 26/May 3, 2021 ENR 41 0426_Top500_Overview.indd 41 4/20/21 4:56 PM THE TOP 500 DESIGN FIRMS International Market Analysis $ MILLIONS NUMBER OF FIRMS IN 34.8% *Data for Asia EACH REGION and Australia had CANADA ARCTIC/ been reported ANTARCTIC together in $6,169.6 previous years. 27.3% CARIBBEAN 6 AUSTRALIA EUROPE 83 52 ASIA $4,844.6 AFRICA 55 119 14.0% LATIN ASIA* AMERICA 7.4% 9.7% $2,476.7 118 AUSTRALIA* EUROPE 4.5% MIDDLE 109 LATIN EAST $1,726.8 0.9% AMERICA $1,314.1 0.0% 1.4% CARIBBEAN $796.7 MIDDLE EAST ARCTIC/ ISLANDS AFRICA ANTARCTIC 93 CANADA $157.2 $239.7 $4.8 144 Direct benefi ts provided another avenue for fi rms to networks, not to mention offensive cyber “threat hunt” assist their employees. “We set up Care.com benefi ts that teams. According to Demetriou, “Our teams proactively help our employees more easily access childcare in re- and iteratively search through networks to detect and sponse to ever-changing impacts on schools and day cares,” isolate threats. An active cyber defense is vital.” says Kathleen Abbott, Arcadis’ environment business line Other cyber security-related costs are rising as well. president. The fi rm also developed a health and safety app “Cyber insurance has increased 400%. Many clients are to allow employees to report and evaluate symptoms of “Cyber asking for greater limits and specifi c coverages,” says COVID-19. insurance has Steve Lane, CEO of SSR. But clients are unwilling to increased Congruex has offered employees paid time off to get pay for those increased costs, he adds. That cost is eaten 400%. Many the COVID-19 vaccine. “Due to the nature of our work, clients are by the fi rm. Companies that work with the U.S. Defense TOTAL we fi nd it extremely important to protect ourselves, our asking for Dept.REVENUE are being required to achieve Cybersecurity Ma- NUMBER OF FIRMS VOLUME NUMBER OF FIRMS HIGHER customers and our communities against the continued greater limits turity$104.8 Model Certifi cation, which aims to reduce their DOMESTIC REPORTING PROFITABILITY REPORTING 206 spreadPROFITS of the coronavirus,” stresses Rob Reynolds, Con-$ BILLIONSand specifi c vulnerabilities. Building out infrastructure to satisfy that 419 coverages.” SIZE OF BACKLOG gruex’s chief information offi cer. DOMESTIC certifi cation is yet another expense. “The regulations and Work from home INTERNATIONALhas created challenges beyond theREVENUE Steve Lane , requirements are incredibly rigorous and strict and have $ logistics of supplying, engagingPROFITS and coordinating a re- 87.1CEO of SSR impacted many vendors and partners we conduct business 78 SAME mote workforce.
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