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Overview p. 60 // International Market Analysis p. 60 // Past Decade’s International Design Revenue p. 60 // International Region Analysis p. 61 // Domestic Staff Hiring p. 61 // International Staff Hiring p. 61 // Profi t-Loss p. 61 // 2015 Revenue Totals p. 61 // How Design Firms Shared the 2015 Market p. 62 // Top 10 by Market p. 63 // Top 10 by Region p. 64 // Asian Market Stalls p. 64 // Backlog p. 64 // Proger’s Moscow Project p. 65 // Hatch Sharpens Focus on Infrastructure p. 66 How To Read the Tables p. 66 // Top 225 International Design Firms List p. 67 // Top 225 Index p. 72 // Top 150 Global Design Firms List p. 73 // Top 150 Index p. 76 FUSION POWER Atkins is the architect- engineer, partnering with Assystem, Egis and Empresarios Argrupados, on the world’s largest experimental fusion reactor, in France. NUMBER 15 NUMBER PHOTO COURTESY OF ITER IO PHOTO COURTESY The Top 225 International Design Firms Oil Prices Spur Market Downturn Design work in the global energy sector sagged and brought an economic slowdown that has international designers scrambling by Gary J. Tulacz enr.com July 18, 2016 Ⅲ ENR Ⅲ 59 ENR07182016TL_IDF_Opener_1.indd 59 7/12/16 11:36 AM THE TOP 225 INTERNATIONAL DESIGN FIRMS 27.1% Petroleum International Market Analysis $17,735.5 20.7% Transportation 17.6% $13,526.3 Buildings $11,538.7 10.3% % 4.3% 5.2 Power 3.1% $6,749.6 Water Industrial Sewer/Waste $2,822.0 $3,423.9 $2,052.9 4.1% Hazardous Manufacturing Waste 5.1% $1,239.6 $2,654.0 Other 1.9% 0.5% $3,360.5 Telecom $325.1 (Measured $ millions) SOURCE: ENR. $33.06 Comparing the Past 2006 $42.99 $52.62 $52.45 $57.67 $65.30 $71.49* $71.35* $70.57* $65.19* Decade’s International 2014 2015 Design Revenue 2007 2008 2009 2010 2011 2012 2013 (in $ billions) SOURCE: ENR. * The 2012-2015 figures are revenue for the Top 200 International Design Firms. The expanded Top 225 list firms had a combined revenue of $65.43 billion. The global market for professional design services is revenue on last year’s list. Even discounting Technip’s showing signs of softening as energy prices continue to presence on last year’s list, the petroleum market still be low. Weakened demand for petroleum and fell 14.7%. metals has had an impact not just on those markets but On a regional basis, the two largest markets for the also on public and private spending in other sectors, par- Top 225 saw signifi cant drop-offs in 2015, with Asia ticularly in resource-rich countries that depend on cash falling 16.0% and Europe down 11.9%. And, once generated by exports to fund expanding infrastructure. “In a low- again, low oil prices hurt the Canadian market, which The uncertainty in the market can be seen in the interest-rate dropped 14.2% in 2015, after falling 15.0% in 2014. results of ENR’s Top 225 International Design Firms environment, Despite lower oil prices, the Middle East market rose governments survey. The Top 225 fi rms generated $65.43 billion in are borrowing 6.0%, while the U.S. market was up 1.8%. design revenue in 2015 from projects outside their to spend on home countries, down 7.7%, from $70.85 billion, in public Oil Pressure 2014. They also had $70.76 billion in revenue from infrastructure.” The drop in oil prices and the general global economic domestic projects in 2015, down 3.7%, from $73.48 Neil Bruce, CEO, slowdown have taken their toll on the petroleum mar- billion, in 2014. SNC-Lavalin ket. “The oil-and-gas business has defi nitely been hit On the Top 225 International Design Firms list, … we had a lot of stuff canceled in the Middle East fi rms are ranked based on design revenue from projects and the U.S.,” says Keith Howells, chairman of U.K.- outside of their home countries, measuring their pres- based Mott MacDonald Group. ence in international commerce. The ENR Top 150 Many global design fi rms in that market are seeing Global Design Firms list measures total worldwide projects canceled or delayed, says Kim Wee-chul, design revenue, regardless of the project location. CEO of Korea’s Hyundai Engineering Co. Ltd. He The petroleum market, the largest market for the says the downturn has led to fi erce competition among Top 225, was the biggest loser, with international engineer-procure-construction fi rms in the sector, revenue dropping 20.2%, to $17.74 billion, down from particularly in the Middle East, which increasingly is $22.23 billion in 2014. Part of this falloff can be moving to a low-bid contracting mode. attributed to the absence from the list of France’s Tech- However, Kim says Hyundai Engineering is fi nding nip, which reported $1.43 billion in petroleum design- opportunities in Russia and the Commonwealth of In- 60 Ⅲ ENR Ⅲ July 18, 2016 enr.com ENR07182016_TL_IDF_Overview.indd 60 7/12/16 11:22 AM ATKINS acquired Nairobi, Kenya- based Howard Humpherys #15 East Africa Ltd. Group, a 200-person OVERVIEW engineering firm on March 3. International Region Analysis 16.6% 20.4% 21.1% United States Europe Number of Firms $10,879.4 $13,332.8 Asia and 18.4% Australia Reporting Profit-Loss 4.2% 10.1% Middle East $13,823.1 156 Domestic Profits South/Central Canada $12,030.3 142 Africa $6,623.0 Domestic Loss $2,772.5 6.7% International Profit % Latin 1.9 27 33 International Loss North Africa America $ $1,250.1 4,394.3 0.5% Caribbean Volume (in $ billions) Islands $136.20 $310.0 Domestic Revenue 0.0% International Revenue Arctic and $70.76 $65.43 Antarctic Total Revenue $12.6 Increase Professional 99 Professional 90 (Measured in Domestic 43 International 46 Decrease firms reporting) SOURCE: ENR. Staff Hiring 20 Staff Hiring 21 Stayed the same dependent States, “where there is high demand for SNC-Lavalin. Several factors are fueling this trend, adopting international technologies.” Hyundai Engi- including a growing demand for public infrastructure neering is working on the $3-billion Kandym Fields Gas 210 and an increase in urbanization, he notes. of the Top 225 Development Project in Uzbekistan and the $3-billion Many firms see the global trend toward urbaniza- sent in surveys Kiyanly Ethane Cracker in Turkmenistan, he notes. tion spurring infrastructure demand. For example, last year. Kim also says the lifting of international sanctions Hisham Mahmoud, CEO of Canada’s Golder Associ- against Iran has created a new, large market for ates, says such projects are getting larger and more petroleum EPC firms. “Iran has been increasing the 52.9% complex, adding, “There is also more demand for oil production and is expected to continue the expan- increased brownfield redevelopment projects.” sion” of its oil business until the country’s faltering international Mahmoud says there is a significant difference between economy recovers, Kim says. revenue in developing and developed markets. “In developing mar- On the power side, there is an increasing market 2015. kets, there is a significant demand for new infrastructure,” for renewable energy. “Even Saudi Arabia, the world’s he says. “In developed markets, there is a demand for leading producer of fossil fuels, has recently launched rehabilitation of existing infrastructure and a continued a 100-MW tender to build new renewable-power proj- 45.2% trend toward privatization of public infrastructure.” ects,” says Umberto Sgambati, CEO of Italy’s Proger. had lower Bruce says public-private partnerships are helping Sgambati says this Saudi tender highlights just how international countries answer the need for infrastructure. “SNC- fast the scenario is changing. “We are witnessing the revenue in Lavalin Capital Inc. investment group provides a start of a new period for engineering that is leading to 2015. unique opportunity for the business to take a stake in a significant change in the energy mix … with a partial infrastructure that is commonly provided by govern- transfer of investments from the oil-and-gas sector to ment-owned entities,” he says. “This places the renewable-energy sources.” The move to renewables is designer in the heart of the developer organization and a major change of focus for the power industry, he says. creates interesting new challenges for our people.” Social conditions are leading to an increase in inter- est in the infrastructure markets. “In a low-interest-rate European Uncertainty environment, governments are borrowing to spend on The European market has been somewhat unsettled, public infrastructure,” says Neil Bruce, CEO of Canada’s but many large design firms have been doing well. For enr.com July 18, 2016 ENR 61 ENR07182016_TL_IDF_Overview.indd 61 7/11/16 7:19 PM THE TOP 225 INTERNATIONAL DESIGN FIRMS example, Sweden’s SWECO AB has grown by about while the Netherlands and Finland are “challenging.” 15% a year for the past 15 years. “We intend to keep Further, since acquiring the Netherlands-based Gront- growing,” says Tomas Carlsson, president and CEO. mij NV last October, synergies in the fi rst quarter of But SWECO will not enter emerging markets because this year reduced costs by about $4.5 million of the of their low fees. forecast $30 million annual savings, adds Carlsson. Another European fi rm doing well is U.K.-based Design fi rms are pondering how the U.K.’s late W.S. Atkins plc. With sales up 6%, to $2.4 billion, last “Brexit has June referendum to quit the European Union will year, Atkins has achieved an 8% profi t margin, which brought a new affect them.

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