General Contractors Report Record Revenue

Contractor revenue remains strong in 2008, in spite of a slowdown in the rest of the country. Unfortunately, the Northwest is about to catch up with the rest of the country as the downturn this market.

By Robert Myers and Lucy Bodilly

Revenues for the Top 10 contractor stopped $6 billion this year, with the same standard three at the top of the list; Hoffman Construction, Portland; and Skanska USA Building Inc., and Turner Construction Co., both of Seattle, in the top three. The $6.15 billion is the highest revenue recorded since the survey started in2001.

The information was collected from an online survey posted on www.northwest.con-struction.com. Most of the companies that ranked in the bottom ten of the 2008 list, declined to respond this year.

In 2008, contractors reported a variety of project types under way including condos, medical, hospitality, and biotech. Heavy highway projects reigned thanks to the gas tax funding in Washington and the bond funding in Oregon. Most companies stayed close to the ranking they held last year. Hoffman and Skanska, together contributed greatly to the uptick in total revenue, by reporting figures over $1 billion each.

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Now, the long anticipated downturn in construction is widely visible. Many general contractors anticipate a drop of 2009 revenues of 40% to 60%. The AGC of America anticipates that 75 percent of all construction companies, which includes residential and non-residential businesses, will fail this year.

“No new projects will be funded for 18months to two years,” says Dennis Wilde, principal with Gerding Edlen, a Portland condo developer.

“I haven’t seen any red ink yet,” says Judy Rapp, a bonding agent and partial owner with Wolfe-Majeskey-Rapp, in Spokane. “I don’t know how long that will last.”

For the present, Northwest contractors can celebrate, but not rest on last year’s laurels.