The 2010 Top 200 International Design Firms and the Top 150 Global Design Firms

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The 2010 Top 200 International Design Firms and the Top 150 Global Design Firms The 2010 Top 200 International Design Firms and The Top 150 Global Design Firms July 26, 2010 The financial woes of the past two years has hit the global construction market. The U.S. market remains in recession, and the worrisome debt burdens of several European countries and the weakness of the Euro have left many large international design firms struggling. However, not all is doom and gloom as many regions around the globe have provided bright spots for some large designers. Article: The Top 200 International Design Firms: Overview Rankings: The Top 200 International Design Firms The Top 150 Global Design Firms Data Tables: Top 10 by Market: Building, Manufacturing, Power, Water, Industrial/Petroleum, Transportation, Hazardous Waste, Sewer/Waste The 2010 Top 200 at a Glance: Volume, Profitability, Professional Staff, Backlog, Market Analysis, International Regions How The Top International Design Firms Shared The 2009 Market Top 10 by Region: Middle East, Asia, Africa, Latin America/Caribbean, Europe, U.S. Canada Lists: 2010 Top International Design Firms – Subsidiaries by Rank Where the 2010 Top 200 International Design Firms Work – by Country [ TOP 200 ] Overview By Peter Reina and Gary J. Tulacz without having to necessarily enter into expensive and temporary hedging,” says THE Barry Norman, managing director, inter- national, for Australia’s SMEC. TOP The financial health of clients in trou- 200 bled times is another concern. “The re- cession has also increased the focus on not INTERNATIONAL only winning work but also ensuring the business gets paid during the course of the project,” says Keith Reynolds, CEO of DESIGN FIRMS Beca Group Ltd., New Zealand. Many firms now worry government work may be affected by public debt con- Global recession has taken its toll, but some bright spots remain cerns. “The global economic crisis is now entering into a new phase: a debt crisis,” in which the public sector may reduce its he financial woes of the past two years has hit the global spending significantly, says Flemming Bli- gaard Pedersen, Group CEO, Ramboll, construction market. The U.S. market remains in re- Denmark. cession, and the worrisome debt burdens of several “Countries within the [European Eco- nomic Community] all are or will take European countries and the weakness of the Euro have harsh measures to reduce their budget left many large international design firms struggling. deficits, resulting in lower public spend- THowever, not all is doom and gloom as many regions around the ing and less for the consumer to spend and thus less private investments,” says globe have provided bright spots for some tional design revenue from projects in Ton van der Velden, a board member at large designers. Canada felt the impact of falling oil prices Netherlands-based Tebodin Consultants The impact of the hard times can be on some of the huge oil-sands work, fall- & Engineers. seen in the survey results for the ENR ing 4.3%. International design revenue in Some design firms worry that the con- Top 200 International Design Firms list. the Middle East was down 0.3%, and in tinuing economic problems in Europe The Top 200 as a group generated $52.45 the U.S it was down 0.5%. and the U.S. may affect the design market billion in design revenue in 2009 from in developing countries, which have con- projects outside their respective home Global Uncertainties Abound tinued to be active. “The truth is that we countries, a drop of 0.3% from 2008’s Major design firms are adjusting to have yet to see any significant slowdown $52.62 billion in design revenue. How- changes following the credit crisis and in Asia or Africa. It may well be coming ever, the Top 200’s domestic design rev- ballooning public debt. A flight to quality as European and North American donor/ enue saw a significant 7.4% falloff in de- in services characterizes their strategies. capital investment countries redirect sign revenue in 2009 to $59.37 billion “Public spending is down … transporta- money to their own economies,” says from $64.14 billion in 2008. So, overall, tion and water are still OK. But when you Norman. But he has yet to see any project the Top 200’s total design revenue get into urban planning and municipal postponements or a drop in tenders. dropped to $111.81 billion in 2009 from projects, [opportunities] are pretty much Executives at some design firms be- $116.76 billion in 2008, down 4.2%. dried up,” says Bertrand van Ee, CEO of lieve the global market has hit bottom and Despite the sluggish market, a few re- Netherlands-based DHV Group. is poised for a turnaround. “While the gions showed strength. The biggest win- Global economic problems have raised impacts of the [global financial crisis] in ner was North Africa, where design rev- many financial concerns beyond just soft the U.K. and Dubai have been substantial, enue for the Top 200 jumped 34.9% in markets. “Exchange rates and trade pro- global revenues were down by some 10% 2009. Design revenue from projects in tectionism” are major concerns for large at the height of the economic recession,” Latin America rose 21.7% in 2009. Cen- design firms, says Chen JiHua, manager says Paul Dougas, CEO of Australia’s Sin- .A. tral and southern Africa rose 5%, while of international business development for clair Knight Merz. However, he believes S the Asian market crept up 1.5%. China Chengda Engineering Co. “The the industry is through the worst of it. UYGUES UYGUES The European market, the largest de- volatility of currencies is an issue at pres- “The prospects for long-lead-time major O sign market among the Top 200, took the ent, and it’s important to structure multi- projects in the mining sectors remain B CREDIT O T O biggest hit, falling 7.1% in 2009. Interna- currency contracts to immunize the risk positive, and demand in the power, energy PH 30 ENR July 26, 2010 enr.com ENR07262010SPR_topstory copy 1.indd 30 7/20/10 5:12:13 PM and transport sectors in developing coun- With 70% of its business in the U.K., advising clients on saving money, says tries is strong,” he says. W.S. Atkins plc. is exposed to government Gammie. Mott has not made large redun- On the other hand, many design firm cuts at home, yet it has improved margins dancies, “and we don’t plan to,” says Wil- executives worry that there may be more while shrinking sales, says CEO Keith liams. The relative weakness of the British trouble ahead. Beca Group is “wary of a Clarke. currency “helps considerably” to export potential double-dip recession and the Big public-sector spending cuts by the skills, says Dilley. impact of investor confidence in large- U.K. government are “well received by Hyundai Engineering Co. is continu- scale capital projects,” says Reynolds. business,” says Arup Chairman Philip Dil- ing its strategy to expand into the con- But some companies say that, even if ley. But the private-sector recovery will struction side of the business. Most Ko- there is a double-dip recession, design not likely fill the gap, he fears. rean engineer-constructors started as firms will be better prepared this time Still, there are some major public proj- contractors, says Kim. He believes that around. Many international design firms ects in Europe. Ramboll has seen top-line Hyundai can parlay its engineering and were hurt because of “excessive expecta- growth and solid profit margins in the management skills to more effectively tions” from the early boom market, says Nordic countries due to several significant provide full-range engineering-procure- Yundong Kim, general manager, overseas projects, says Pedersen. One is the design ment-construction services. business department, Hyundai Engineer- of a tunnel project under Fehmarnbelt, The market downturn has exposed ing Co., Korea. If there is a double-dip connecting Denmark and Germany. “This some firms as poorly run and has made recession, “the crisis [among design firms] tunnel will be the longest combined road- owners wary of the reliability of design won’t happen since people are ready to and-rail tunnel in the world if this project firms. “Customers want certainty, and cope with it,” he says. is realized.” Ramboll also is working on a they want to trust that the company they Many design firms say there are nu- new signaling system for the 3,000-km do business with will be around also to- merous countries in which the market is railway network in Denmark. morrow and that it has a full understand- thriving. “South Africa, Australia, Brazil, Denmark’s COWI A/S has remained ing of their needs,” says Pedersen. Chile, India and the Middle East offer ter- stable, says CEO Lars-Peter Søbye. Lon- Atkins’s target sectors include renew- rific opportunities for international design don-based Arup Group is “fairly stable,” able energy, while “nuclear new build is firms,” says Kurt Strobele, CEO of Hatch adds Dilley. U.K.-based Halcrow Group coming very quickly,” says Clarke. Fur- Group, Canada. He is concerned about grew sales and profits last year, mainly in ther, the burgeoning interest in the “de- “countries that have little or no respect Australia, Asia, Latin America and India. carbonization of society” represents a for the rule of law” as they pose risks for But it cut around 10% of staff, says CEO large market. Energy and climate-change clients. Peter Gammie. Globally, “we are seeing work is also in COWI’s sights. “For us, the regions that offered the a slowdown in decision-making.” Another firm upbeat about the power most opportunity for business growth market is Sweden’s ÅF.
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