Texas Hold "Em!

All bets in, Top 130 have winning hand

For the 12th year, Texas Construction presents our annual Top Contractors’ ranking. Contractors from across the state anted up, and the results are based on in-state revenue for the previous year. This year’s numbers show that the state’s construction market remains on a roll as we move past the mid-decade mark. The top Texas firms in our rankings collectively billed about $17 billion in the state in 2006 and approximately $76.5 billion from all projects worldwide.

by Eileen Schwartz

This issue marks the 12th year Texas Construction magazine has compiled the Top Contractors ranking. Each annual chart has its own pulse: firms come, firms go. Some have remained on this list for all 12 years; others opt to skip a year for various reasons such as a soft fiscal period.

The number of firms participating has lingered around the 135 mark for the past few years. This year, the final published chart cuts off at 130, not due to less participation, but because, as the survey continues to gain importance in the Texas construction industry, the rankings, too, must reflect this. While we would like to include a listing for each and every firm that completes a questionnaire, the mission is to develop a chart that reflects the firms performing the most work in state.

As we go about the task of spreading the word about the survey and rankings at the start of the year, Texas Construction makes every effort to reach as many general contracting and construction-management firms in Texas as possible, including some contractors based out of state but performing work in Texas. The information provided on the Top Contractors chart, shown on the following pages, is derived  from surveys completed by each firm, and the results are based on the revenue reported for 2006 by each company for work performed in the state. Rankings are also broken out into specialty categories based on the percentage of revenue generated in various industry sectors.

For the first time, this year our survey was conducted as an online questionnaire. Gone are the days of typewritten or handwritten responses that were then faxed to the editor and entered into a spreadsheet one by one. The data in this year’s chart comes directly from the responding firms. This makes the survey-taking process simpler – for most – and reduces the possibility of error.

The Top Contractors list is a statewide ranking that includes total company revenue for work performed outside Texas. The ranking is industrywide; it includes contractors working in everything from general building and heavy/highway to industrial and construction management.

Last year’s top 138 contractors reported approximately $16 billion collectively billed in 2005. In comparison, total in-state revenue reported for 2006 rose to approximately $17 billion. That is true, even though the number of firms included on this year’s list is eight fewer.

The top Texas firms collectively billed about $70 billion in 2005, and this year reported approximately $76.5 billion from all projects in all geographies in 2006. The previous year, 2004, that same number was $50 billion.

Findings from this year’s ranking also show that more than 50 contractors reported earnings in excess of $100 million for 2006, about the same as the previous year’s rankings.

advertisement

Jacobs Engineering Group of Houston claims the No. 1 spot in this year’s Top Contractors ranking with $1.28 billion in Texas revenue. The Houston-based firm was in the fourth spot last year, but didn’t participate in 2004 rankings. Prior to that, Jacobs placed No. 32 in 2003 and held the No. 8 spot in 2002. In the specialty category of the current breakout, Jacobs ranks No. 1 in industrial, No. 6 in manufacturing and No. 7 in transportation.

After a three-year run in the top spot, Austin Industries of Dallas moves into No. 2, with approximately $1.07 billion total reported from its Texas operations for 2006. The firm reported $1.3 billion for all work, a dip from last year’s $1.36 billion reported for overall projects. Austin Industries places in the top five in the majority of break-out categories: No. 4 in general building, No. 3 in transportation, No. 3 in industrial, No. 2 in manufacturing and No. 2 in power.

Zachry Construction Corp. of San Antonio moves into the third slot overall, after two years as No. 2. Zachry reports $972 million in Texas 2006 revenue, an uptick from $793.6 million in 2005. The majority of the firm’s work from this year’s report is about 50/50 industrial and transportation work. Zachry is No. 1 in the power category, and No 2 in both the industrial and transportation sectors.

Williams Brothers Construction of Houston, with $548.4 million, all from heavy/highway projects, places fourth. Williams Brothers remains the overall leader in the transportation breakout category.

Centex Construction of Dallas ranks fifth, with more than $412 million, the majority of which came from the general building sector. At press time, the firm’s current acquisition deal was expected to be complete and the company to begin operating under the name Balfour Beatty Construction.

While this list is a ranking by revenue numbers, Texas Construction wishes to acknowledge the hard work and efforts of all the top Texas firms and congratulates all who made the list this year. Keep Texas growing.