Then and Now | Three of the projects that defined Downtown Kansas City's renewal—Sprint Center, H&R Block's headquarters and the Kauffman Center for the Performing Arts—are all wrapped up. So what's next?
Engineering
Less spectacular, but still noteworthy, was the growth among the Top 10 engineering firms through the decade. Revenues were up a healthy 15.6 percent in inflation-adjusted terms, to $4.91 billion in 2010. Two companies in particular drove that performance, with Burns & McDonnell, the second-largest firm in the region as measured by billings, and HNTB, the third-largest of the local firms, both roughly doubling their revenues in that span.
Burns & McDonnell rose from $485 million to $1.1 billion; HNTB nearly matched that, going from $444.7 million to $958 million. Both closed the gap on No. 1, but the market leader remained Black & Veatch, a $2.2 billion organization in 2002 whose $70 million growth alone exceeded the local or firm-wide billings of 20 other firms among the Top 25 in 2010.
The increase in inflation-adjusted billings for the leading engineering companies, said Burns & McDonnell CEO Greg Graves, was further indication of how Kansas City had solidified its status among engineering centers in the nation.
“We absolutely think our region has become a national center of excellence for engineering services,” Graves said. “All of the firms, from large to medium to small, have had growth and success, and most would agree that it’s part of a national perception of excellence for engineering services.”
What helps drive that sector-wide success? The quality of engineering programs at regional universities, Graves said. “We have several excellent engineering schools within a 200-mile radius,” he said, “There are hundreds of graduates coming out of those schools every year, and a lot of them are looking to stay in this area. So the engineering firms here get to pick the cream of the crop.”
In addition, Burns & McDonnell’s efforts to partner and mentor some smaller firms, has helped encourage growth there.
Jim Lewis, chief administrative officer for Black & Veatch, said the region’s biggest engineering firm had maintained its position by focusing on “the massive needs for critical human infrastructure in the areas of energy, water, telecommunications and security in the U.S.
and globally.”
Choosing the right venues has been vital, he said, but so have the people and processes involved. “The key to the success of our projects is the experience of our staff and the maturity of our processes and procedures,” Lewis said. “We constantly review our processes through our business excellence program to ensure that our experience improves our processes to meet our client’s needs.”
In addition, the company has worked to elevate training at all levels, “not just technical training, but also project management, project controls, construction execution and leadership,” he said. That will be important for sustaining the firm’s growth during a looming global building boom.
“Global infrastructure spending is expected to be $70 trillion over the next 40 years as demand for new energy, water and communications systems, and updates to existing networks, drives expenditures and creates millions of new jobs worldwide,” Lewis said. “With the strong base that has been developed over the past decades, the engineering and construction industry in the Kansas City region will continue to be well-positioned to provide services to meet these needs.”
Architecture
The biggest change in this sector has been the emergence of Burns & McDonnell as the biggest employer of architects in the region, overtaking long-time leader Populous through both organic growth and acquisitions.
But if you could put a face on other changes here over the past decade, David Manica’s might be a good selection. After more than a decade with Populous, Manica headed out on his own with a boutique firm specializing in sports architecture. Now, he’s working on stadiums and arenas around the world.
The field-leveler? Technology. The digital revolution has allowed small firms to apply their expertise almost anywhere on the planet, Manica said just before boarding a flight to Moscow for work on a project there. “Before, I don’t think it would have been possible to do what I’m doing now,” he said. “E-mails, ftp transfers of large files, Skype for video conferencing—I was just on the phone with a client in Italy with my iPhone—it’s easier now than ever to communicate with people around the world.
One other reason for adopting a global vision: “Between 2002 and 2012, stadium construction was taking place all over the U.S.,” Manica notes. “At this point, most every city has a major building portfolio completed; now they’re looking at major renovation projects to keep their buildings current in market, keep them fresh to generate revenue like they were intended to.”
That makes a big difference if your niche is up-front construction, rather than upgrades. But as that has been going on, he said, “a lot of new markets have come to the surface in the last 10 years, and it’s exciting to be a part of that.”