Orange County’s architecture firms reported they’re growing their business faster outside the county.
Their combined local billings rose a modest 1.7% to $480.8 million for the 12 months ended June 30. However, firmwide billings climbed 3.2% to $1.8 billion, based on numbers reported by two-thirds of the firms. A year ago, half of the companies reported firmwide billings had fallen 11%.
Firms ranked two through five all reported a decline in OC billings. In fact, 15 firms altogether said local billings fell, compared with six saying so a year ago.
• OC revenue at No. 2, Irvine-based LPA Inc., fell 2.8% to $49.1 million while firmwide billing rose 16% to $81.8 million.
“We’re seeing tremendous growth in our other offices” in areas like San Jose and Texas, said Chief Executive Wendy Rogers. The firm is emphasizing work in Texas, where residential communities are expanding and driving the need for new schools.
“Orange County still has a number of opportunities, like the Great Park sports complex and Cypress College,” she said.
LPA’s OC employee count climbed 24% to 259 due to its diversification into products to aid in landscaping and engineering.
• By contrast, Irvine-based Ware Malcomb jumped two spots to claim the top ranking as the result of a 27% climb to $51.4 million in OC billings. Firmwide sales almost kept pace at a 26% increase to $83.9 million.
“Our focus on commercial real estate, particularly the industrial and office sectors, along with our diversification, has played a significant role in our revenue growth,” Chief Executive Lawrence Armstrong wrote in an email.
“The continued economic expansion has stimulated commercial real estate growth.”
The company has more diverse product offerings and clients, Armstrong said, such as the worldwide headquarters of MicroVention Inc. in Aliso Viejo.
This week’s Business Journal ranks the 40 largest architecture firms with significant operations in OC by dollar value of local billings. The list also includes companywide billings and the number of licensed architects and local employees, though those numbers don’t affect the rankings.
The firms employed 534 architects in OC, up 11%. Local overall staffing rose 5% to 2,873.
Seventeen firms reported that billings rose, down from 18 a year ago.
Notables
• Irvine-based MVE & Partners, known for a wide variety of projects for the Irvine Co., reported a 6% drop in OC billings to $31.5 million, nevertheless retaining its No. 4 ranking. It declined to reveal companywide billings.
The firm has “robust revenue” as it expands into new areas, like high rises, including in Los Angeles, and geographies such as Reno, where it’s building a 46-acre mixed-used project, said President and Chief Operating Officer Rick Emsiek.
“We have made a decision to seek new markets,” he said. “We’ve become very active in high-rise housing with a hotel component in it. We keep pushing and evolving into different areas.”
MVE reduced its OC headcount 22% to 78 employees.
“Technology is allowing us to create a similar amount of work with less people,” Emsiek said. “We invest in technology on a continual basis.”
• Lee & Sakahara Architects Inc. in Irvine climbed the most as its OC billings more than doubled to $12.5 million. Its staff of architects remained the same at 13, and its overall employee count increased by one to 19.
The firm jumped 12 spots to No. 12, the most notable climb on this year’s list.
• No. 13, Taylor Design in Irvine, reported the most unusual numbers. Its OC billings fell 28% to $10.6 million as firmwide billings dropped 16% to $16.2 million. Yet it more than doubled its number of architects from eight to 19 and its employee count by 58% to 79.
“We had a very large project that had a high gross revenue but a lot of pass-through” to contractors, Chief Executive Randy Regier said. “We’re getting closer to what our normal revenue stream is. 2015 and 2016 were abnormalities.”
The large project, which is near completion, is the Rancho Los Amigos National Rehabilitation Center, which involved the design of four buildings in Downey.
Taylor Design is hiring more people because business has been strong this calendar year, Regier said.
• Westberg & White Inc. in Tustin reported the biggest percentage drop in OC billings, 57% to $3.78 million and a commiserate drop in list standing, falling from 12th place to 33rd. However, firmwide billings rose 23% to $12.6 million.
