Texas Construction’s 10th Annual Top Texas Specialty Contractors

By Eileen Schwartz

The number of large and complex projects under way in Texas can be a mixed blessing for the state's top specialty contractors. With labor concerns and plenty of work out to bid, there's a constant demand for skilled labor. Soaring fuel costs, meanwhile, not only impacts businesses but is also felt by the workforce.

Despite these and other challenges, the firms that appear in Texas' Top Specialty Contractors feature are staying ahead amid a struggling economy. The ranking of those firms is an annual list of the state's top specialty contractors based on survey responses. The overall revenue reported by the state's specialty contractors is the highest figure it has ever been.

The 10th annual ranking includes 140 firms, which together report combined in-state revenue of more than $5.7 billion in 2007. That's more than $2 billion compared to just two years ago, when the 2006 issue’s total (ranking by 2005 revenue) was $3.7 billion total for 126 firms. Last year's total, also for 140 firms, was about $4.2 billion. While the number of firms fluctuated slightly, the steady climb over indicates a solid subcontracting market during a slowing economy.

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How we do it Texas Construction's top-list rankings are conducted in similar fashion to and by the same data managers overseeing those of Engineering News-Record, which like Texas Construction, is a McGraw-Hill Construction publication. We attempt to spread the word about the survey and rankings as early as possible, with a goal of reaching all eligible commercial specialty and subcontracting firms doing work in Texas. The rankings span a wide variety of subcontracting sectors, breaking out firms doing the most work in subcategories including electrical, concrete, mechanical and plumbing.

The resulting information is provided on the following pages for each firm that responded to our questionnaire, completed online by a representative from each firm. Every effort is made to verify that the information provided is accurate. The results are based on the revenue reported for 2007 work performed in the state.

Rankings are also given based on the percentage of revenue generated in various industry sectors.

Because some of the participating firms working in Texas perform work outside the state, we also list worldwide revenue for each business. The total from all work in-state and out was about $15.5 billion.

Instate revenue shows thirty-three firms earning more than $50 million and 15 in excess of $100 million.

Top-list leadersTaking the first-place spot for the second consecutive year is Houston-based Integrated Electrical Services Inc. with approximately $341 million in Texas revenue. With 100% of its work in the electrical sector, it also takes the No. 1 spot among contractors in that subcategory. Last year, IES reported $292 million in Texas earnings. The firm previously moved up from the third position in the 2006 issue’s ranking, reporting nearly $70 million more than its 2004 earnings. Its largest project completed in 2007 was a crude unit for Valero in Port Arthur.

Also keeping its No. 2 spot from last year's list is TDIndustries Inc. of Dallas, reporting $283 million. It takes the No. 1 position this year in the breakout ranking for the plumbing subcategory. With $234 million last year, TDI ranked second place, moving it from the No. 1 position in the 2006 list, when it reported approximately $178 million total reported from its Texas operations for the prior year. The largest project completed by TDI in 2007 was for Christus St. Catherine of Houston.

Moving into the third spot with $253 million is Brandt Engineering Co. of Dallas. It ranks No. 1 in the mechanical/HVAC subcategory. Last year Brandt's $151 million earned it position No. 5 overall. In 2007, Brandt's largest job was on the expansion of Samsung in Austin.

Houston-based Walker Engineering, which made the fourth position with $246 million. With 100% of that in electrical work, Walker is No. 2 in the electrical contractors breakout. Its largest project in 2007 was on the Lonestar Data Center in Georgetown.

Orion Marine Group of Houston takes fifth place, reporting $210.4 for its work in marine construction. The firm's largest job in 2007 was work performed at Houston's Bayport Cruise Terminal project.

The rankings include information such as the main in-state addresses, telephone and fax numbers and Web sites where provided, the principal or top regional officer(s) and a breakdown by category of work activity by industry sector.