Orange County environmental consulting companies continued to post gains in billings and employment during the past year, despite some jitters over funding for public works projects and the direction of the housing market.
Companies said they saw a continued boost in work from the private sector, particularly in land redevelopment and homebuilding.
Several officials with local consulting companies said that rising interest rates during the past two years haven’t yet cut into their businesses.
The 30 biggest environmental consultants in OC recorded 2005 billings of $493 million, up 11% versus a year earlier. This week’s Business Journal list ranks environmental consulting companies by billings generated out of their OC offices (see special report for more environmental coverage, page 63).
Estimates were made for four companies that declined to provide figures. Without those estimates, the remaining consultants posted a 14% growth in local billings.
Consultants reported an 8% rise in companywide billings to $7.3 billion. They grew their local operations by 5% to 2,830 workers.
Environmental consultants often see big swings in billings when big, long-term projects come to an end. Many projects begin or rely on government funding.
Housing Work
Housing work was active.
“We are doing an awful lot of large residential communities,” said Joan Patronite Kelly, chief executive and managing principal with BonTerra Consulting of Costa Mesa.
No. 28 BonTerra debuted on this year’s list with $5.8 million in billings.
“As long as interest rates don’t go up too fast, they tell us they still plan to build,” said Kelly of homebuilders.
In January, Federal Reserve policymakers boosted the federal funds rate by a quarter-point to 4.5%, the highest in nearly five years.
That was the 14th quarter-point increase since the Fed began to raise rates in 2004.
Maintaining the No. 1 spot was the Santa Ana office of Denver-based CH2M Hill Cos., which had billings of $75 million, up 12% from a year earlier.
“Our growth is all related to growth in Orange County,” said John Caldwell, vice president and area office manager of CH2M Hill in Santa Ana. “Our work forecast remains strong.”
His company sees plenty of opportunities on projects to build roads, private toll roads, water and wastewater projects, and expansion of the ports of Long Beach and Los Angeles.
CH2M Hill also is heavily involved in remedial cleanup and investigations, and a considerable amount of compliance work for air and ground water issues.
It also has done work for the Department of Defense at military base closures, Caldwell said.
“The economy is still pretty good for what we are doing,” said Caldwell of its public works business.
No. 2 URS Corp. of Santa Ana moved up a spot on an 18% rise in billings to $47 million. URS does work for the Orange County Transportation Authority and Chevron Texaco Corp., among others.
Dropping a place to No. 3 was TRC Cos. in Irvine, which reported a 2% rise in billings to $43 million.
Newcomer
Brea-based Project Navigator Ltd. debuted on this year’s list at No. 20. It reported a 68% gain in billings to $8.4 million.
Growth was fueled by a contract for work at an abandoned waste oil facility in Huntington Beach as well as projects for Chevron and Shell Oil Co., according to Roberto Puga, principal with Project Navigator.
Gains from the housing market played out at No. 12 Pacific Advanced Civil Engineering Inc. in Fountain Valley, which posted a 34% rise in billings to $12.3 million.
Pacific Advanced counts Lennar Corp. and Pulte Homes Inc. as clients. Both homebuilders are among the most active in OC.
Les Card, chief executive of No. 15 LSA Associates Inc. of Irvine, said he’s seen increasing demand for work in the housing and transportation markets. LSA Associates reported a 19% jump in billings to $10.8 million.
“I can’t find enough people to fill the positions I need for expansion,” said Card, who has openings for 18 workers. The company works with The Irvine Company and homebuilder SunCal Cos., among others.
No. 16 Miller Brooks Environmental Inc. in Huntington Beach saw billings rise 18% to $10.6 million last year. The company does oil, real estate and governmental projects, including air, water, and solid and hazardous waste permitting work.
