We present you the top ranked construction companies in the US, award-winning builders who made their name in the second largest construction market in the world. During last year spending in the industry climbed 10.5 percent, reaching the figure of 1.1 trillion, which is the highest level since 2008. A number of indicators, including job growth, increased building spending in the private sector, unemployment decline, show that construction has been recovering from the hit it suffered during recessional years. However, the sector has faced certain challenges, including a persistent shortage of skilled labor force which has worsened in last two years.
The increase in overall construction spending was led by significant growth in the private sector. Leopardo’s analysis 2016 Construction Economics Report and Outlook shows that since 2011, spending on multifamily building grew at 29.4 percent rate annually, which is more than double of spending in single family properties. Economists agree that multi-dwelling units will continue to rise in 2016 but at lower rates compared to a year ago. Low apartment vacancy rates in some parts of the country, coupled with the fact that employment has increased among millennials who chose renting over ownership, will drive multifamily construction. On the other side, the prognosis for single-family buildings was not so optimistic at the end of the previous year. However, figures released by the U.S. Commerce Department show that the beginning of 2016 brought significant pickup in single-family units. Single-family housing starts climbed 7.2 percent to a rate of 822,000 in February, which is the highest level since November 2007.
In regards to job prospects, construction workers will be glad to know that in February unemployment rate was the lowest since 2000. At the same time, the sector will add 790,400 new positions by 2024. Still, construction companies are facing issues with prevalent lack of workforce. In Associated General Contractors of America (AGC)’s survey, 83 percent of building firms said that they have problems finding qualified craft workers while 61 percent reported having a hard time finding qualified construction professionals. Shortage of labor force has led many companies to rely on subcontractors. The majority has also raised wage rate base and introduced benefits, but these measures did not bring desired results. The Portland cement association predicts that 75,000 startups won’t be launched due to the lack of skilled workforce.
In our previous list 10 biggest construction companies in the US, we ranked firms by their physical presence, revenue, and accomplished projects. Today’s list of top ranked construction companies in the US is based on slightly different criteria. Besides taking into account 2014 revenue, we also looked at 3-year growth, and awards and recognition that companies received in recent years. In creating the ranking, we relied on Inc. 5000 list, which presents the companies that have recorded the greatest growth in last three years. Out of 231 construction firms which appeared on Inc. 5000, 16 had revenue over $100m. We ranked these 16 firms by growth, and awards to come up with the top 10.