Orange County’s top engineering firms had a mixed year with an increase in local billings as companywide revenue dipped.
The top 39 with headquarters or significant operations here combined for $1.45 billion in local billings for the year ended June 30, up about 7%, as companywide revenue dropped 4.4% to $69.8 billion.
Most of the firms traditionally have won lucrative contracts from oil and gas producers and work on related environmental issues. Many diversified their client bases following a big drop in oil prices late last year that likely caused the companywide dip in billings at many firms.
This week’s Business Journal list ranks OC’s largest firms by local billings. It also provides companywide revenues, the number of licensed engineers and local employees, none of which affect the rankings.
The firms combined to employ 1,293 licensed engineers, up a little more than 2%, though total employment declined about 1% to 4,786.
Most firms—18—said their billings were up. Nine were down, and the Business Journal estimated billings for 11. Three firms debuted on the list this year.
Top Three
• The Santa Ana office of CH2M Hill Cos. climbed one spot to top the list with $495.8 million in local billings. Its companywide billings were flat at $5.4 billion. The Englewood, Colo.-based company added five engineers to employ 68 in OC while releasing 15 staffers for 165 locally.
• Fluor Corp.’s Aliso Viejo office is No. 2 with $300 million in local billings, up about 32%. Its headquarters in Irving, Texas, reported companywide sales were down about 16% to $18.1 billion.
The local office employs 248 engineers and a total staff of 780.
• The AECOM office in Orange is No. 3 with about $73.6 million, down 1%. Companywide billings were flat at about $17.8 billion. Its OC office added five engineers to employ 106 but cut total headcount by 10% to 515.
Notables
• Stantec’s Irvine office climbed four spots to No. 9 with about $29.7 million in local billings, up 57%.
The company broadened its services late last year in order to acquire more contracts in OC and surrounding counties, said Dean Palumbo, head of its western U.S. operations.
“Orange County is very important to us because it’s a very stable and growing region that has a diversity of work,” he said.
Stantec has a variety of projects in OC—municipal, transportation, architecture, community building and parks, he said.
“We’ve made a strong effort to identify target markets beyond the oil and gas and mining industries.”
Those types of businesses cut capital expenditures and contracts for engineering work when oil prices dropped. He said he anticipates the engineering industry to feel those effects for several more months. “There is a bit of a lag and a domino effect.”
The firm has 134 engineers, up 3%, but cut three staff positions to end the period with 206 overall. Its headquarters in Edmonton, Alberta, Canada reported companywide billings of $2.5 billion, down 8%.
• Willdan Group Inc. in Anaheim dropped two spots to No. 31 on about $4.9 million in OC billings, down about 29% and the biggest percentage drop on the list.
The local office released half of its engineers to employ 10 and had 95 total on staff locally.
The firm’s companywide revenues jumped 54% to $143.6 million.
Newly Ranked
Three firms joined the list.
• Mayers & Associates Civil Engineers in Lake Forest ranks No. 33 with $3.8 million, up 31%. The firm hired two engineers for a total of five locally and employs 26 overall, up 37%.
• DCI Engineers’ office in Irvine premiered at No. 36 with $2.5 million, up 16%. It had 10 engineers and a total of 20 employees in OC. Its Seattle headquarters reported companywide billings of about $35.8 million, up about 18%.
• 4 S.T.E.L. Engineering Inc. in Mission Viejo is No. 37 with $2.4 million, up about 49%. The firm employs three engineers and 19 total, up 36%.
