The Real Deal New York

NYC construction companies saw leaps in revenue in 2015

The 20 biggest companies averaged 14% increase

July 13, 2016 11:39AM

NYC construction and William Gilbane III

NYC construction and William Gilbane III

The 20 biggest construction companies in New York City raked in 14.3 percent more revenue last year than in 2014.

The firm with the largest gain was Gilbane Building Company, which saw a 171.7 percent increase in its New York-area revenue, Crain’s reported. William Gilbane III, president of the company’s New York division, said the jump in revenue can be attributed to Gilbane’s expansion into residential and commercial sectors. He said projects like the New York Wheel in Staten Island and 55 Hudson Yards have helped spike revenue. Tutor Perini Corporation saw the second-highest increase of 71.7 percent, and Hunter Roberts Construction Group came in third with a 47.5 percent jump in annual revenue.

The top three firms all saw revenue from NYC projects eclipse $2.5 billion in 2015, Crain’s reported. Gilbane reportedly has $1.1 billion worth of projects right now, and has drawn the ire of unions.

Construction employment in the city is the highest it’s been in the last 40 years, reaching 138,200 workers in 2015, according to the state Department of Labor. That number is expected to reach 147,000 in 2016. The average wage for all sectors of the construction industry hit $76,300 in 2015, according to a report from the New York Building Congress (developers dispute the findings, claiming it doesn’t capture the full cost of hiring union labor).

The issue of wages last year dominated much of the debate surrounding the future of 421a, the now-defunct property tax abatement. The future of the program hinged on developers and union groups agreeing on a prevailing wage requirement, which some in the industry argued would make the projects prohibitively more expensive. [Crain’s] — Kathryn Brenzel
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