Top Contractors Convey …

Economy’s strength drives continued construction boom in state and the nation.

By Vince Baglivo, Contributing Writer On Nov 8, 2018

Business has been good for the companies highlighted in Engineering News Record’s (ENR) 2018 “Top 400 Contractors” list. As the US economy continues to move forward at a steady pace, so too has the success of contractors managing a wide range of projects benefiting the industrial, healthcare, educational, hazardous waste remediation, alternative energy sectors and more.

According to the results of the ENR’s 2018 survey, the nation’s Top 400 contractors, as a group, generated a record $373.98 billion in contracting revenue in 2017, an increase of 2.1 percent from 2016’s $366.41 billion. 

As ENR reported, domestic contracting revenue from projects in the US grew to $322.83 billion, an increase of 4.9 percent following two consecutive years that produced nearly double that growth. At the same time, the ENR survey showed that revenue from projects outside the US decreased in 2017 to $35.5 billion, a decline of 18.4 percent over the previous year.

Federal tax cuts have contributed to the current positive mood among business leaders. Efforts to reduce regulatory burdens have also played a role. However, there are crosswinds to contend with.

In September, the Federal Reserve raised interest rates for the third time this year and gave indications for another potential increase before the end of 2018. Global political and economic strife has the international business community on edge. While these contrasting factors illuminate the constant push and pull of the economy’s cyclical nature, the state’s top contractors look to the future with a mix of caution and confidence.

Gilbane

Dennis Cornick, executive vice president and global director of sales and marketing for Gilbane, Inc., underscores the cyclical nature of the construction industry, which is largely driven by the health of the economy and demographics. With total revenue of $4.9 billion, including both domestic and international markets, Gilbane specializes in construction management, general contracting, design-build and program management services. The various market segments it serves include corporate interiors delivered by a dedicated Special Projects Group, high-rise residential, commercial, healthcare, education, public agency work, processing/pharmaceutical/life sciences, disaster recovery and cultural projects.

“At present, and looking into the future short term, the domestic economic outlook is positive, according to key indicators. Gross domestic product (GDP), which is one of the primary benchmarks and measures of the nation’s production output, is expected to remain at an ideal 2-3 percent range. Unemployment is low, inflation or deflation does not appear to be a worry, and the recently-instituted tax cuts will continue to benefit corporate profits. In addition, domestic manufacturing is forecasted to grow faster than the general economy. All of the above are positive indicators that point to a continued healthy construction market,” Cornick points out. 

“While the outlook is positive, there are potential storm clouds that could negatively impact one of the longest domestic upswings on record,” he adds. “The shortage of skilled workers, escalation in the areas of labor and materials, and tariffs are a concern. We are all focused on taking advantage of the current opportunities that are available without losing sight of what the future may bring.”

Gilbane’s New Jersey office is in its 52nd year of operations and is a key contributor to the overall Gilbane business, with current ongoing volume approaching $700 million in projects, including construction management, general contracting and project/program management services in a variety of market segments.

Gilbane projects in New Jersey include the recently completed Rockefeller Group/Summit Medical Group in Florham Park, Boraie Development, Rector Street Apartments in Newark and Hackensack University Medical Center.

Daniel Shea, vice president, says Gilbane is focused on diversification across market sectors to provide solutions for a vast array of clients and project types, with the ability to ebb and flow with market fluctuation and economic influences. “The New Jersey market is healthy and the forecast for the near future remains steady,” Shea adds. “The residential sector still commands a significant portion of the market, but we are beginning to see signs of other markets backfilling that growth. Gilbane is interested in monitoring the state’s recently-approved P3 (public private partnership) legislation to understand how it will be used in the future.”

Torcon

“New Jersey has enjoyed a robust construction market over the past several years, but we continue to lag the nation in the creation and retention of construction jobs,” notes Co-President Ben Torcivia, Jr. of Red Bank-based Torcon, Inc. Torcivia, Jr. is currently Chairman of the Board of Trustees of the Associated Construction Contractors Association of New Jersey, which recently reported that many of the state’s metropolitan areas are underperforming when compared to the rest of the US. Of the 358 US metro areas, 287 gained construction jobs in the year-over-year period from August 2017 to August 2018. However, three New Jersey metro areas landed at the bottom, losing more construction jobs than most other metro areas.

Torcon is currently completing the final phase of construction on New Jersey Institute of Technology’s (NJIT) new Wellness and Events Center. The multi-use sports center in Newark serves the student body and NJIT’s athletic teams. The 220,000-square-foot facility, designed to create a new focal point of the campus, includes a 10,000-square-foot indoor turf area, an 8-lane, 25-meter swimming pool, running track and racquetball/squash courts. The 3,500 seat Convocation Center hosts concession stands, athletic department offices, and offers both basketball and volleyball team facilities. 

Students can enjoy exercise classrooms, weight training equipment, a two-court gymnasium and locker room facilities. A 52-foot-high glass-walled front overlooks NJIT’s new soccer field and the school’s academic campus. Construction of the main facility was completed in November, in time for the men’s basketball team’s season opener. NJIT’s previous athletic facility has been removed and a new soccer field is now under construction. 

Torcon is providing preconstruction services for the State of New Jersey’s new Department of Taxation building in Trenton. The project is being built by the New Jersey Economic Development Authority and is designed by Ballinger. Current plans call for an eight-story, 175,000-square-foot building. An early 2019 start of construction is anticipated if the project is approved. 

With revenue of $500 million, Torcon is also very active in Camden, helping the city’s impressive resurgence. According to Torcivia, Jr., “We have completed several projects at Cooper University Hospital, both within the hospital itself and in facilities elsewhere in Camden County. Torcon is currently building The Michaels Organization’s 11 Cooper, a new luxury apartment complex near the waterfront. The $35-million facility will provide 150 market rate units. Completion is scheduled for spring 2019. Also in Camden, Torcon is completing the new Joint Health Sciences Center for Rowan University and Rutgers Camden. The $50-million facility will provide unique education and training opportunities to a new generation of healthcare providers for meaningful careers in healthcare and biomedical research.”

Wood PLC

Charles R. Harman, P.W.S., Wood PLC’s principal ecologist for environment and infrastructure solutions, says while business has been steady in areas like transportation, infrastructure and renewable energy across the US, regulatory changes have affected work being conducted at the Federal level, though state driven regulations have not really changed. “This is particularly true in New Jersey, where the Licensed Site Remediation Professional (LSRP) program continues to drive much of our work,” Harman notes. (See related story on page 55.)

With offices in Hamilton, Hampton, Clinton, Somerset and Swedesboro, Wood has seven LSRPs in New Jersey, has been very active in the Licensed Site Remediation Professionals Association (LSRPA), and has helped in the development of numerous Technical Guidance Documents.

Internationally, Wood Group PLC is comprised of four major divisions; Environment & Infrastructure Solutions, Asset Solutions America, Asset Solutions Europe, AsiaPac, Australia, and Specialty Technical Solutions. In New Jersey, the Wood organization is solely Wood Environment & Infrastructure Solutions (E&IS), which includes 83 employees across two major offices in Hampton and Somerset, and two project offices. 

Wood is involved in a broad array of construction projects supporting a variety of client sectors including industrial/pharmaceutical, oil and gas, transportation, clean energy, and government. Projects include hazardous remediation projects, stormwater management and water resource projects, roadway and bridge repair, pipeline construction, and wind farm and solar array construction. 

“Most of our projects in New Jersey are associated with the hazardous waste industry in support of industrial/pharmaceutical clients,” Harman states. “As such, many of those projects are considered confidential by our clients, but they do include hazardous waste excavation, contaminated sediment removal, and groundwater treatment technology.”

Wood PLC is finalizing a series of contracts for the US Fish and Wildlife Service, valued at approximately $10 million that began in 2015 and are expected to be completed this year. The work was oriented around response actions to Super Storm Sandy and coastal marsh resiliency at the E.B. Forsythe National Wildlife Refuge and Cape May National Wildlife Refuge. 

The projects included: the removal of a small dam in Monmouth County; the removal of more than 700 wooden antenna poles from an old AT&T radio station located in a coastal marsh in Berkeley Township; the re-armoring of exposed dikes at the E.B. Forsythe NWR Headquarters in Oceanville; the replacement of a large water control structure; and the reinforcement of a long water management dike at the same location’s resiliency construction, including the placement of water diversion runnels and the reinforcement of a coastal marine breakwater at the Cape May National Wildlife Refuge in Cape May.

Structure Tone

Erik Sletteland, vice president, client services, says Structure Tone has been busy for the last several years in nearly every market the company operates in. Overall, the Structure Tone organization reports approximately $4 billion in revenue, including revenue of $500 million in New Jersey.

“While we expect this boom to slow down in coming years, in New Jersey one area of continued growth is the redevelopment of former corporate or pharmaceutical campuses in more suburban areas,” Sletteland adds. “More and more companies are leveraging the opportunities for amenities on these suburban campuses to create mini-cities for their staff who may desire to live in or commute to a major city. Somerset Development’s Bell Works complex in Holmdel is a perfect example of this trend, and several large tenants, retail spaces, entertainment venues and the like have already opened there while more continue to be under construction.”

Structure Tone’s expertise includes core and shell and interior construction within the corporate office, life sciences/pharmaceutical, healthcare, data centers, educational, residential and retail sectors. In addition to the redevelopment of the historic Bell Labs in Holmdel into the mixed-use Bell Works “metroburb,” Structure Tone’s other New Jersey projects include the relocation of UPS’s hub at Newark Liberty International Airport, Software company iCIMS, Inc. headquarters in Holmdel, the major expansion at Gagnon Cardiovascular Institute at Morristown Medical Center, and a new 400,000-square-foot residential complex in New Brunswick. 

“We are also working on a number of extremely large data centers in the US and internationally. Again, the space issue can be a challenge for data centers looking to support large urban hubs. While many companies look to less populated areas to house those data centers, New Jersey does continue to be a desired location with its proximity to cities like New York and Philadelphia,” Sletteland concludes.

The expertise and experience of New Jersey’s top contractors across a multitude of business categories has kept the state well represented among the nation’s best. With a focus on the vast array of business and projects currently in play, plus preparation and planning for future opportunities and challenges, their contributions to the state’s booming construction activity are essential to New Jersey’s economic health and vitality.

 

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