The Top 225 International Contractors The Top 225 Global Contractors August 18, 2008 This annual issue ranks the 225 largest construction contracting firms from around the world. It also ranks the largest firms in a wide variety of market sectors and geographic markets: Building, Manufacturing, Power, Water, Industrial/Petroleum, Transportation, Hazardous Waste, Sewer/Waste and Telecommunications. In addition, readers will get insights from executives of these top firms about the markets and issues affecting the industry around the world. This and other ENR survey issues are used as reference tools throughout the industry. Companies are ranked according to construction revenue generated in 2007 in US$ millions. Main story: "Prices Soar in a Boom Market" Tables - The 2008 Top 225 International Contractors based on Contracting Revenue from Projects Outside Home Country (with description about how to use the tables) - The 2008 Top 225 Global Contractors based on Total Firm Contracting Revenue (with descriptions about how to use the tables) - The 2008 Top 225 At a Glance: Volume, Profitability, Professional Staff, Backlog, Market Analysis, International Regions - Top 10 by Market: Building, Manufacturing, Power, Water, Transportation, Hazardous Waste, Sewer/Waste, Telecommunications - Top 20 Non-US Firms in International Construction Management/Program Management Fees - Top 20 Non-US in Total CM/PM Fees - Top 10 By Region: Middle East, Asia, Africa, Latin America/Caribbean, Europe, U.S., Canada - How the Top 225 International Contractors Shared the 2007 Market - Where to Find The Top 225 International Contractors - Where to Find The Top 225 Global Contractors Web Only Supplements: "Subsidiaries By Rank"-includes in-depth listings of each firm's subsidiaries "Where the 2008 Top 225 Contractors Worked"-lists the countries in which these firms had work or offices during 2007. ENR_08_18_2008_p032_v2.qxd 8/11/08 6:48 PM Page 32 ᮢ Top 225 Overview By Peter Reina and Gary J. Tulacz THE TOP 225 International Contractors Prices Soar in a Boom Market 27.1% increase over 2006’s figure of The global construction market continues to boom and $650.66 billion. large international contractors are reaping the benefits. The story was pretty much the same regardless of the region. North Africa The demand for big-ticket projects, from petroleum showed the biggest percentage increase production facilities and powerplants to major infra- in international work for the Top 225, structure upgrades and signature buildings, has made rising 75.3% to $13.17 billion. The Mid- dle East continued to show astounding the demand intense for world-class con- by ENR’s Top 225 International Con- strength, growing 52.0% to $62.89 bil- tractorsT with the size and expertise to tractors. The Top 225, as a group, gener- lion. Other big gainers included Europe deliver these projects. As a result, big ated $310.25 billion in 2007 revenue (up 34.2% to $96.45 billion), Asia (up firms around the world are scrambling to from projects outside their respective 37.9% to 55.40 billion), the U.S. (up grow, either organically or through ac- home countries. This is a startling 38.3% 26.8% to $36.91 billion), Latin America quisition, to meet this demand. increase over 2006’s mark of $224.40 bil- (up 41.3% to $19.25 billion) and central The scope of the hot market can be lion. The Top 225 had total contracting and southern Africa (up 48.3% to $15.42 BY GUY LAWRENCE FOR ENR seen from the revenue figures provided revenue in 2007 of $826.96 billion, a billion). Only Canada (up 3.6% to $8.28 IMAGE 32 Ⅵ ENR Ⅵ August 18, 2008 enr.com ENR • ISSUE: Aug. 18, 2008/ PAGE: 32 / Version: #2 CYAN MAGENTA YELLOW BLACK Day, Month 00, 2006 0:00:00 PM LEFT HAND PAGE 5 25 50 75 95 08112008184854 ENR_08_18_2008_p032_v2.qxd 8/11/08 6:48 PM Page 33 Canada Europe Middle East Total Revenue: $8.3 billion Up 3.6% Total Revenue: $96.4 billion Up 34.2% Total Revenue: $62.9 billion Up 52.0% FIRMS COUNTRY % OF TOTAL $ MILLION FIRMS COUNTRY % OF TOTAL $ MILLION FIRMS COUNTRY % OF TOTAL $ MILLION 21 U.S. 66.7 5,525.8 6 FRANCE 20.0 19,288.1 20 U.S. 21.4 13,482.5 3 FRANCE 20.4 1,688.8 11 SPAIN 13.9 13,451.1 9 JAPAN 13.6 8,575.4 6 ITALY 5.4 444.3 1 AUSTRIA 12.1 11,681.9 16 ITALY 12.0 7,551.9 3 GERMANY 3.0 247.2 18 U.S. 10.0 9,684.0 4 FRANCE 8.6 5,408.6 1 AUSTRIA 2.0 162.5 1 SWEDEN 8.0 7,713.4 1 GREECE 7.4 4,647.2 1 AUSTRALIA 1.7 140.6 5 GERMANY 6.9 6,676.4 7 KOREAN 6.5 4,062.2 10 OTHER 0.9 72.1 94 OTHER 29.0 27,953.9 84 OTHER 30.5 19,167.1 billion) and the Caribbean (down 10.7% to $2.01 billion) bucked this huge surge. Asia Africa Not all of this increase can be attrib- Total Revenue: $55.4 billion Up 37.9% Total Revenue: $28.6 billion Up 59.7% uted to hot markets. ENR asks non-U.S. FIRMS COUNTRY % OF TOTAL $ MILLION FIRMS COUNTRY % OF TOTAL $ MILLION contractors to provide their revenue in 4 GERMANY 24.2 13,382.6 42 CHINA 26.9 7,695.8 U.S. dollars and requests that the curren- 45 CHINA 16.6 9,177.0 19 ITALY 20.2 5,774.3 cy conversion rates in effect on Jan. 1 of 20 U.S. 14.8 8,185.6 5 FRANCE 15.3 4,364.4 the survey year be used to provide the 15 JAPAN 13.9 7,685.2 12 U.S. 6.8 1,957.3 dollar amounts. 15 ITALY 5.6 3,115.1 8 JAPAN 4.0 1,150.1 In 2007, the euro, the Japanese yen, 4 FRANCE 5.3 2,941.2 14 TURKEY 3.3 955.5 and several other currencies surged 52 OTHER 19.7 10,912.8 41 OTHER 23.4 6,698.1 against the dollar. Between Jan. 1, 2007, and Jan. 1, 2008, the euro had risen 11% in 2009,” adds Ian Tyler, CEO of the in value from $1.32 to about $1.47, the U.K.’s Balfour Beatty Construction Ltd. Latin America/Caribbean value that was used by survey participants For some major international contrac- Total Revenue: $21.3 billion Up 33.9% for this year’s survey. This boosted the tors, the current market is bringing its FIRMS COUNTRY % OF TOTAL $ MILLION Top 225’s revenue for many internation- own set of problems to keep up with the 11 SPAIN 28.1 5,983.5 al contractors who were paid in euros. booming market. “We are still facing very 12 ITALY 16.7 3,558.7 The Japanese yen rose about the same high levels of new orders and…facing 27 U.S. 16.7 3,539.8 between January 2007 and January 2008. shortages of staffing,” says Michel Cote, 3 BRAZIL 11.4 2,433.8 So currency fluctuations played a role in deputy CEO of France’s Bouygues Con- 4 FRANCE 8.3 1,757.7 the dramatic increase in revenue for the struction SA. 5 JAPAN 5.0 1,057.2 Top 225. Contractors in the hottest market sec- 42 OTHER 13.8 2,926.1 One major change in the world mar- tors are scrambling to keep up. Petrole- ket is just how international the market um is one such market, with 2007 rev- has become. This year’s Top 225 has con- enue leaping 77.5% to $80.04 billion for U.S. tractors from 35 different countries. the Top 225. Russia’s Stroytansgaz is Total Revenue: $36.9 billion Up 26.7% Where the Top 225 used to be dominat- feasting on the growing demand for FIRMS COUNTRY % OF TOTAL $ MILLION ed by U.S., European and Japanese firms, petroleum projects and has now branched 4 GERMANY 26.2 9,683.1 there now are groups of firms on the list out into the power sector, says Leonid 1 SWEDEN 15.2 5,613.2 based in China, Turkey, and the Middle Bokhanovsky, first vice president. “The 2 AUSTRALIA 13.0 4,806.2 East. Only 35 U.S. contractors are on this Middle East and North Africa is a grow- 3 U.K. 9.3 3,444.9 year’s Top 225, a record low for ENR’s ing market in oil and gas and energy pro- 11 JAPAN 9.3 3,422.0 Top international surveys. jects for us,” he says. 4 FRANCE 8.8 3,246.0 European contractors are upbeat Construction demand in chemical and 38 OTHER 18.1 6,690.7 in the near term, but are uncertain of petrochemical sectors will continue to be where the banking crisis will lead. “We “very good” in the next couple of years, East, Latin America and Russia are “all have a substantial backlog,” says Herbert says Fabrizio Di Amato, major share- booming,” he says. Lütkestratkötter, CEO of Germany’s holder and CEO of Italy’s Maire Tecni- “In the Middle East, capable contrac- Hochtief AG. “We are pretty busy and mont SA. “We need to increase our ca- tors with available capacity or with capa- we are almost certainly going to be busier pacity,” he adds. North Africa, the Middle bility to grow are very much sought enr.com August 18, 2008 Ⅵ ENR Ⅵ 33 ENR • ISSUE: Aug.