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Engineering Firms’ Revenues Drop After 3-Year Jump

The top engineering firms with headquarters or significant operations in Orange County ended a three-year streak of gains with a 1.5% drop in local billings during the 12-month period ending June 30.

This week’s Business Journal list features OC’s 39 largest engineering firms, which collectively reported $2.8 billion in OC billings. Their companywide revenue added up to $77.8 billion during the period.

Sixteen companies said their billings generated in the county increased, 11 firms posted declines, and the Business Journal estimated figures for the remaining 12 firms. Together they employed 1,286 licensed engineers, up 5.7% from a year earlier.

There were no changes in the top ranks of the list.

• Irving, Texas-based Fluor Corp., which has an office in Aliso Viejo with 199 licensed engineers, reported $27.4 billion in companywide revenue for calendar year 2013. It didn’t report local billings, which are estimated at $1.6 billion for the 12-month period the list is based on and enough for it to retain the No. 1 spot on the list.

• CH2M Hill Cos. in Santa Ana retained the No. 2 spot with $493.3 million in billings, a 6% dip from a year earlier. The Englewood, Colo.-based company as a whole reported a 5.7% revenue decrease to $6.6 billion.

It reduced its number of licensed engineers by 16.9% to 59, bringing total staffing levels to 254.

• AECOM Technology Corp. in Orange and Irvine-based URS Corp. are listed as separate companies on the list, taking the No. 3 and No 4. spots, respectively. However, AECOM acquired San Francisco-based URS in July for approximately $4 billion, and the combined firm is now headquartered in Los Angeles. Next year they’ll be listed as one company.

AECOM reported $74.6 million in Orange County billings, a 7.3% decline. It reduced its local workforce by 15% to 360 during the past year, and the number of its licensed engineers rose from 94 to 101.

URS’ local billings are estimated at $58 million. The company reported its OC staff at 274, up 7.5%, of whom 128 are licensed engineers.

• RBF Consulting, a company of Michael Baker International, posted $48.3 million in OC billings, a 15.3% increase that enabled it to retain the No. 7 spot. The Pittsburgh-based firm employs 234 at its Irvine office, a 9.3% dip from last year.

• Fountain Valley-based Spec Services Inc.’s billings increased 6.4% to $41 million. The firm, which remained in the No. 8 spot, reduced the number of its licensed engineers to 31, a 13.9% decline. It hired 12 workers during the past year, boosting its employee count to 208.

• Tustin-based Hall & Foreman Inc. moved up one spot to No. 33. It reported a 24% gain in billings to $4.7 million, and its companywide revenue was $9.9 million—up 15.4% from a year earlier.

The firm was acquired in August by David Evans and Associates Inc. in Portland, Ore. It retained its name and operates as a subsidiary of David Evans Enterprises Inc., parent of David Evans and Associates.

• Stantec Consulting Services Inc. held on to the No. 13 spot with $18.2 million in revenue generated in OC. That’s a 4% increase for the Edmonton, Canada-based company, which considers Irvine the headquarters of its Southern California operations. The firm’s number of licensed engineers in OC surged to 95, up 51% over last year. It employs 152 workers here, (see related story, page 18).

• Salas O’Brien Engineers in Santa Ana reported $1.6 million in local billings, a 19.2% increase over a year ago. The San Jose-based firm, which placed No. 39, acquired Houston-based Kalmans Marshall Engineering Inc. in June. The company said it plans to continue as KME Salas O’Brien LLC once the integration is complete. The deal added 55 people to Salas O’Brien’s roster for a total of 170 employees. It also increased the firm’s companywide billings from $20 million to $30 million and expanded its number of offices from nine to 12, according to Chief Executive Darin Anderson.

“This combination enables us to serve our national clients even more effectively,” he said. “We share the same values and have complementary skills and experience that will further drive Salas O’Brien’s success.”

• AndersonPenna Partners Inc. in Newport Beach, the sole newcomer on the list, debuted in the No. 27 spot with a 39% year-over-year increase in revenue to $7.7 million. The company employs 60 workers, of whom 11 are licensed engineers.

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