LARGEST CONTRACTORS SET NEW VOLUME RECORD

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86-00244R000200510015-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 12, 2016
• Document Release Date: January 11, 2002
• Sequence Number: 15
• Content Type: MAGAZINE

THE
400
Approved Ft~elease 2002/02/19 :CIA-RDP86-002~iR000200510015-3
l.ar t ~?r~ctrs ~t n~ gal r~~c~r
The 400 largest U.S. contractors in These general trends of greater con-
1971 saw an upswing in their new bust- centration, higher average volume and
ness from 1970's~ tight volume. Their higher top, have recurred throughout
1971 contract awards totaled $3G bit- the nine-year history of The ENR 400
lion, jumping 11% over a year ago. with the exception of 1970.
Foreign work rebounded fastest with With 313 contractors returning to
a 22.5% leap to $4.9 billion. Domestic The ENR 400 that were also listed a
contracts climbed 9.5%, but marked the year ago, 62% increased their contract
second consecutive year that The ENR volume in 1971. General builders fared
400 failed to top the growth rate of the the best, with three out of four taking
total U.S. construction market exclud- on more new business last year. Two
ing homebuilding, which rose 10% last out of three diversified contractors and
year. heavy and highway contractors in-
Design and. construct contracts shat creased their contract awards in 1971,
up 13% from the low 1970 total, top- while three out of five industrial cop-
ping the previous high of 1969. The structors reported a jump.
$11.1 billion in new design and con- Joining The ENR 400 in 197.1 are 87
struct work awarded in 1971 under- contractors that were not listed in 1970.
scored the recovery of industrial con- Thirty-one of these 87 are newcomers
structors. The 34 industrial constructors to The ENR 400 and 56 are returning
among The ENR 400 increased their after a year or more absence.
share of tone 400's total from 15% in of Alm lag st mechani0cahand electrical
1970 to 21 Io in 1971. g
More concentrated. Concentration of contractors. Fischbach & Moore, How-
contract volume tightened within the and P. Foley, E.C. Ernst, Scheider,
400. The top 10% of The F.rTR 400 ac- Union Boiler and Architectural & Me-
counted for 56v/o of the total, up from chanical ,Systems Corp. are ranked
54% in 1970. And the dollar volume of among the 400 as well as 'among the
this upper 10% climbed 15% above top mechanical, electrical contractor
1970's top 40-greater than the overall alnd electrical4contractors are includ d
increase.
More $100-million contractors are among The ENR 400 because their
among the 400-63 compared to 52 a prime contracts plus share of joint ven-
year ago, increasing the concentration tares is higher than the minimum
at the top. The 400 was further $21.1-million volume.
squeezed as the minimum contract vol- Bglse Cascade No. 1..Boise Cascade
ume rose 5.5% to $21.1 million. heads up The ENR 400 largest U.S. con-
Diversified contractors score greatest
Pre-tax prolits as a
'
equity
of stockholders
Contractor type & 1971 dollar volume Number
Low
Median
h
H~
01 companies
/?
O
Heavy & highway
$50 million & up ..................
4
10.0
19
40
3
-$49 mil ...................
$25 mil
15
3.0
20
4
.
$20 mil.-$24 mil ...................
9
2.0
13
130
Building & heavy
$100 million & up .................
10
6.0
27
97
-$99 mil ............ . ......
$50 mil
19
1.5
24
75
.
$20 mil.-$49 mil ...................
28
0.5
23
69
Building
$100 million & up .................
11
1.5
21
43
-$99 mil ...................
? $50 mil
9
2,0
18
153
.
$20 mil.-$49 mil ...................
61
1.0
22
223
tractors with its $2.5-billion volume, up
from its $2.1-billion total that was re-
ported too late last year to place Boise
Cascade in the No. 1 slot for 1970.
Three industrial constructors are.
ranked in the top 10 as Stone & Web-
ster ju inps to No. 2 and Lummus to No.
7, joining Boise Cascade's Ebasco.
Brown & Root topped Bcclrtel in
1971 contract awards to lancl the No. 3
slot. Daniel International and Guy F.
Atkinson each dropped one rank fc?om
1970 to hold the No. 5 and 6 positions.
Three general builders fill out the top
10. Turner holds onto the No. 8 rank
for the second consecutive year, Garl A.
Morse dropped two spots to No. 9 and
Tishman joins the top 10 for the fprst
time since 1967.
Missing are Kaiser Engineers, United
Engineers and Constructors, and Rust
Engineering, all of which dropped out
of the top 10 in 1971.
Growth In forelgn market. The increase
in foreign work signed up in 1971 will
take even greater numbers of U.S. con-
tractors abroad this year. Currently, 76
members of The ENR 400 are working
in 105 foreign countries.
Canada again heads the list of for-
eign countries that attract U.S. contrac-`
tors. Thirty-five U.S. contractors nazi'
have jobs in Canada-the same number
as in 1970. Twenty-six of the 400 are
working in Puerto Rica, 19 in Austra-
lia, 18 in the United Kingdom and 17
in Germany.
Industrial constructors and diver-
sified contractors that do both heav}'
and building construction account for
the bulk of The ENR 400's foreign con-
tract volume. Fifteen industrial con?
structors netted 35"/0 of the foreign total
with 27 diversified contractors account-
ing for 47%. Heavy and highway con?
tractors won only $475 million in for-
eign jobs in 1971; general builders onl}
$303 million.
CM is popular. Construction manage-
meat (CM) contracts, like design-onl}'
contracts, are excluded from compare}'
totals for The ENR 40U roster. Man};
members of the 400 offer GM seraic'e`
however, and served as CMs on projec~'
in 1971 where other firms (often mem~
Inaustnaf
$50 milli~I~Si91/ed.FQr. Release 20?2/02/188 CIA-R~P86-O1~~44R0001g06~~?ba$~) did the work as prsm<
$20 mil.-$49 mih .. .. ? ? ? ? ? ? ? ? ? ? ? ? ? 9 3.0 contractor.
The 78 firms that told ENR they alft'?
 CM services say they have done so for a
number of years, About half of these 78
firms have offered such services for 10
or more years. Only a handful have just
recently added construction manage-
ment to their list of specialties.
In 1971, 46 of these firms offering CM
services were awarded construction
management contracts where another
firm worked as prime contractor total-
ing $2 billion in project value. These
CM contracts per firm range from
$250,000 to over $500 million in con-
struction cost.
Fees for CM services vary widely. One
firm reports its standard construction
$13.9 billion by 133
Building & heavy
contractors
management fee is 1% of project value,
while another claims 10%. The median
standard fee is 4%.
Four out of five companies that offer
CM services say their fee decreases as
project size increases. Standard fees
may drop from 5 or 6% to a minimum
of 2 or 3% on large projects. The lowest
minimum fee reported is 0.5%; the
highest, 8~/0.
In addition to offering CM services,
many members of The ENR 400 have
been prime contractors on projects that
had another firm in the CM role. Nine-
teen of the 78 firms that offer CM ser-
vices themselves have also worked as
$10.2 billion by 160
General building
contractors
prime contractors on a CM project. In
1971, 50 members of The ENR 400
worked as prime contractors on projects
totaling $225 million that had another
firrn in the CM role.
Widespread profits. Contractors prof-
its were more abundant in 1971 than a
year ago. Nine out of 10 of the 400 re-
port they made a profit in 1971. Only
21 of the 318 firms reporting their
1970-71 profit trend suffered a loss last
year. Moreover, of the firms that made
profits in both 1970 and '71, two out of
three upped their profits in 1971 and
eight firms pulled out of the red.
Industrial constructors scored the
More contractors are now working abroad than in 1971
In these 105 countries . .
1.
Africa
36.
nonouras
71.
Peru
(n18tGIl COUIICIy COO@S W!T!1 fBDIE 8[ IErI)
2.
Algeria
37.
Hong Kong
72.
Philippines
3.
Angola
38.
India
73.
Poland
Austin-5,7,11,16,28,29,39,43,59,84,97 Ballenger-20,74 Bechtel-4,5.7,11,14,16,17,
4.
Antarctic
39.
Indonesia ~
74.
Puerto Rico
19,21,27,28.29,38,39,47,53,57,58,61,72.74,83,84,86,87,97,105 E.E. Black-32,72,94 Blaw-Knox-
5.
Argentina
40.
Iran
75.
Qatar
103 Blythe Bros.-74 Boise Cascade-2,5,14,16,28,31,
16
46
100 Blount Bros.-45
8.
Aruba
41.
Iraq
76.
Rumania
,
.
.
7.
Australia
42.
Israel
77.
Russia
38.46,81,84,87,96,99 C.F, Braun-16.22,29,35,46,47 Brown & Root-3,7,8,13,14,15,16,
8.
Bahrein
43.
Italy
78.
S. E. Asia
23,25,33.36,39,40,46,48,50,58,59,64,67,69,70.71,74,75,81,82,83,64,97,100,101,102 Burgess-7,89
9.
Bangladesh
44.
Ivory Coast
79.
Samoa
Burns & Roe-7,16.31,38,46,49,58.67,87,84,87,96 C & C/BOhrer-7,74 Catalytic-11,16.28,29,46,55,
10.
Beirut
45.
Jamaica
80.
Sardinia
ti.
Belgium
46.
Japan
61.
Saudi Arabia
83,97 Centex-74 Cunningham-Limp-11,16,29.74,84 Daniel-17,23,29.74,97,102 Day & Zlmmer-
t2.
Bolivia
47.
Korea
82.
Singapore
mann-33 Delta-5,16 Dillingham-7,16,32.47,61,62,64,82,94 Dravo-2,5.7,16,28,29,33,52,96,100
13.
Botswana
48.
Kuwait
83.
South Africa
Elchleay-16 Fischbach & Moore-16,29,45,63,74,83,90,101 Fluor-7,16,47,71,82,83,97,100 Ford,
14.
Brazil
49.
Kwajeleinlsl.
84.
Spain
91 Frenchl-51,95 Fuller-58.74 Edward J. Gerrlta-74,1 D2 Great
Bacon & Davis-14
72
74
36
38
15,
Rrunei
50.
Labuan Isl.
85.
Sudan
,
,
.
.
,
16.
Canada
51.
Lebanon
66.
Sweden
Lakes-6 HRH-74 Harbert-20,24,45 Nat Harrison-33,74 Hawell Corp.-32 Houston-24,91 Ja-
17.
Ceylon
52.
Liberia
87.
Taiwan
cobs- 16,26,42,58,74,79,97 J.A. Jones-12,19,74,101 Kaiser-5,7,14,16,30.39,44,45,74,80.90,103
18.
Chile
53.
Libya
88.
Tanzania
M,W. Kellogg-14,16,18,29.38,39,46,47.51,74,76,77.97,100 Peter Klewlt-16 G.H. Leavell-52.85
19.
Colombia
54.
Malawi
89.
Tasmania
20.
Costa Rica
55.
Malaysia
90.
Thailand
Lummus- 2,5,i 2,14,16,18,27.28,29,40,43.46,47,58.59,72,74,77,83,87,96,97,100 J. Ray McDermott-
21.
Czechoslovakia
56.
Marshalllsl.
91.
TrinMad ~
7,14,16,40,64,65,81,82,91 Arthur G. McKee-1,5,6,7,11,14,16,18.26,29,3A,43,58,84,86.96,100,104
22.
Denmark
57.
Mauritania
92.
Trucial States
McKinley-73 Morrlson-Knudsen-5,7,14,16,1923,28,3a,39.40.47,59,61,68,67,95,97,100 Carl A.
23.
Dominican Republic
58.
Mexico
93.
Truk
28 Mosser-102 Oman-7 Ralph M. Parsons-1,7,1629,46,58,69,72,78,87,97 Parlnl-
Morse-16
24.
Ecuador
58.
Netherlands
94.
Trust Territories
,
25.
Egypt
60.
Newfoundland
95.
Tunisia
16,68 Plzzagalll-102 R,B. Potashnlck-26,74 H.C. Price-7,10.16,2829.35.40,48,82,97 J.F. Prlt-
26.
Ef Salvadore
81.
New Guinea
98.
Turkey
chard-2,9,16,40,72,77,100 Procon-7,11,14,15.16,28,29.46.47,5260.74,84,90,97 Ramada-11,29
27.
Finland
62.
New Zealand
97.
U.K.
Raymond-43,45,52,53,64,74,91,97,96,100.101 F. D. Rich-74 Rusl-11,16,1928,29,47.58,97,100
28.
France
63.
Nicaragua
98.
Uganda
29.
Germany
64.
Nigeria
99.
Uruguay
Sanderson 6 Porter-14,39.40,52,74.81,97,101 Santa Fe Engineers-47 Santa Fa Pomeroy-
30.
Ghana
65.
North Sea
100.
Venezuela
7.16,39,40,41,48.58.64,66,75,81,82,92 5cientltlc Design-11,14,38,43.46,58,76.64,97 Stearns-Ro-
31.
Greece
66.
Norway
101.
S. Vietnam
gar-16,42 Stolte- 82 Naito L. Teer-33,36,54.63,88 Turner-37 U.S. Induelrles-14 Vlnnell-
32
Guam
67.
Okinawa
102
Virgin Isl
.
33.
Guatemala
88.
Pakistan
.
103.
.
West Indies
32,58,68.72,62,101 Warren Bros.-16,84 Del E. Webb-26,36 Foster Wheeler-7,14,16.28,29,43,
~
(1rq~ r0 r1b~ ~~..,s p~~rs~ 7y ~r ~0
FZ'Q9b ~B~eaSe Z~~Qf~~r~~'g Crl'/-l4RLJr~~=~L441'CUUUZU~~~UU 1~-J'56.68,74 Zurn-
~prOV@~
~
35.
Hol
and
:
70. Paragu
a)
 best profit record, with only one out of - ----
26 operating in the red. General bu~ To~ 1Q~Zi/U~! & m~fi~~~~18r6o~~2~~4~000200510015-3
ers arYd heavy and h~p}~h4~~Jt~~leaS Zu Z~U 1~ X36"
could not match the profit record of the 1971 contracts
industrial constructors, but fared better in ~ mlluons Construction specialty
than diversified contractors. About one. Total Foreign (Mechanical) (Electrical)
out of 16 general builders and heavy
and highway contractors reported a loss
in 1971, while 10% of contractors doing
both heavy and building construction
ran into the red ink.
Bucking the trend set in previous
years, losses hit hardest among the $25
million to $49-million contractors. Gen-
erally, contractors with less than $25-
million contract volume most often run
'into the red, But in 1971, seven of the
eight general builders that reported a
loss have $25 million to $49 million in
contract awards. Five of the nine heavy
1.
Fischbach & Moore, New York, N.Y ......................
258.2
29.5
/ /
2.
Sam P. Wallace Co., Inc., Dallas, Tex .....................
98.5
21.7
/ /
3.
Howard P. Foley Co., Washington, D.C .................
96.0
0
.. /
4.
Amelco Corp., Honolulu, Haw ...............................
88.6
24.7
.. /
5.
Natkin & Co., Omaha, Neb ....................................
82.4
0
/
6.
E.C. Ernst, Inc., Washington, D.C ..........................
80.0
0
/ /
7.
Limbach Co., Pittsburgh, Pa ............................:....
68.9
0
/
..
6.
Lord Electric Co., Inc., New York, N.Y ...................
58.5
n.r.
? /
9.
Poole & Kent Co., Baltimore, Md ...........................
43.31
0
/
10.
Schneider, Inc., Pittsburgh, Pa ..............................
41.0
0
/
11.
Continental Mechanical Corp., Dallas, Tex............
36.7
0
/
12,
Riggs 8 Distler & Co., Inc., Baltimore, Md ..............
38.5
0
/ /
13.
Union Boiler Co., Inc., Nitro, W. Va .......................
35.9
0
/
..
14.
Broyles & Broyles, Inc., Ft. Worth, Tex ...................
35.3
0
/
15.
University Mech. Engrg. & Const., San Diego........
35.0
0
/
16.
Economy Mechanical Ind., Skokie, III .....................
32.Ot
0
/
..
17.
Arch. & Mech. Systems Corp., Champaign
III..
27
7
0
/
,
.,...,
18. Courter & Co:, Inc., New York, N.Y . ......................
.
22.3
0
/
/
..
19. Tibbetts Plumbing & Heating, Anderson, Ind.........
22.1
0
/
and building contractors that operated tPercent completion basis ?mechanical in Puerto Rico only
in the red last year were among that
group and three other diversified con- $1.2 billion awarded to top specialty contractors
tractors with losses reported a contract
volume over $50 million. Top U.S. mechanical and electrical contractors, which often work with and com-
Pretax profit margins on stock- Pete against members of The ENR 400, are introduced in the listing above. These
holders' equity in the business were 19 leading mechanical and electrical contractors took on $1.2 billion in 1971 con-
greater than in 1970 for all types and tract awards.
sizes of contractors except for the follow- Company totals included prime contracts in the U.S., share of joint ventures,
ing classifications: large general build- subcontracts and foreign work. The minimum volume of $22.1 million corre-
ers and small to medium size heavy and sponds to the minimum volume of The ENR 400.
highway contractors. Six of these top mechanical and electrical contractors are also listed among The
Diversified contractors working on ENR 400 because their contract volume, excluding subcontracts, is higher than the
both heavy and building projects re- minimum volume of the 400, Their rank among the 400 is determined by their to-
ported the greatest margin on equity in tai contract volume in 1971, including subcontracts. For many of the other 13 me-
1971, while a year ago they had the chanical and electrical contractors, subcontracts awarded to them by other prime
smallest. Conversely, $100-million gen- contractors often account for the bulk of their new business:
eral builders saw their margins drop Fischbach & Moore, ranked No. 27 among The ENR 400, leads the list of top
from a median of 30% on equity in mechanical and electrical contractors with its $258.2-million volume, which is
1970 to 21% in 1971. 162% higher than its closest competitor.
Large industrial constructors had the Eleven mechanical, three electrical, and five contractors handling both mechan-
secand best record and the tightest ical and electrical construction, are included. The five contractors doing both me-
range of profit margins. These Indus- chanical and electrical work account for the largest share of the total, 42?10, with 11
trial- constructors, with more than $50 mechanical contractors accounting for 38% and-three electrical contractors netting
million in contract awards, 'reported 20% of the $1.2-billion total.
pretax margins ranging from 17 to 53% Flve working abroad. While only three of the 19 top mechanical and. electrical
of equity with a median occurring at contractors reported their 1971 foreign contract awards totaling $75 million, five
25%. firms report they are currently working in 17 foreign countries. Fischbach &
With 179 contractors reporting, Moore leads with current jobs in eight foreign countries, Amelco is working in six,
profit margins as a percent of tangible Sam P. Wallace in three and Lord Electric and. Poole & Kent in one each. Jobs
net worth ranged. from half of 1% to these five firms now have overseas are in Australia, Bermuda, Canada, France,
over 200% before. taxes. Twenty-nine Germany, Guam, Guyana, Jamaica, Nicaragua, the Philippines, Puerto Rico, So-
firms made 5% or less of a return on in- maliland, South Africa, Thailand, U.S. Trust Territories, South Vietnam and the
vestment before taxes and 14 of them Virgin Islands.
are general builders. Design work is included among the construction specialties of five top mechani-
Equlpment Investment up. Lead by cal' and electrical contractors. Sam P. Wallace, Broyles & Broyles and Archi-
heavy and highway contractors, mem- tectural & Mechanical Systems Corp. reported about $50 million total in new cle-
bers of The ENR 400 have a considerable sign and construct work awarded to them in 1971.
investment in construction machinery Hlgh margins on equity. Ten of the leading mechanical and electrical contractors
and trucks valued at current replace- reporting their 1970-71 profit trend made a profit in 1971. Only one mechanical
ment cost. contractor acid one mechanical and electrical contractor reported a loss.
Large heavy and highway contrac- Two out of three of the profit-makers reported higher pretax profits in 1971
tors, with over $50 million in 1971 con- than in 1970. Jumps ranged from 2 to 214% with a 12?Io median increase.
tract awards, have ap~,~e~~ti' Rel~'21'~~~~A~~'~?ri~~~~$~0?2~~00?