KANSAS CITY, Mo. — Burns and McDonnell, a Kansas City-based engineering, architecture, construction, environmental and consulting services firm, announced that 2007 total sales for all practice groups exceeded $1 billion for the first time in company history.
Total sales in 2006 were $905 million, which also was a company record. Revenue recorded in 2007 totaled $850 million, up nearly 12 percent over 2006 revenue of $760 million. The sales and revenue totals set company records for the fourth consecutive year. Under generally accepted accounting practices adhered to by Burns & McDonnell, sales are the value of contracts signed in the fiscal year and revenue is the actual income derived from work performed during the year.
“We continue to see strong growth in all 10 of our practice groups, with remarkably good prospects going forward in 2008,” said Greg Graves, president and CEO. “We’re certainly not immune from the effects of a slowing economy, but so far, in the industries we specialize in, we see a large backlog of work and are confident that our recent trend of strong performances will continue in the near term.”
Backlogs in Key Sectors
Continued large project backlogs in the energy, electrical transmission and distribution, aviation and aerospace, petrochemical, and government sectors contributed to the record results.
Graves attributed Burns & McDonnell’s success to three factors:
- A large backlog of infrastructure improvements needed nationwide in both the public and private sectors.
- An employee-ownership structure that gives corporate management flexibility to apply strict risk management standards to projects and to limit annual growth to manageable levels.
- A large pool of satisfied clients who repeatedly turn to Burns & McDonnell for additional project work.
Satisfied Clients Return
Graves noted that more than 90 percent of current projects are with clients who have previously contracted with Burns & McDonnell.
“Burns & McDonnell is well-positioned to manage the risk of an economic downturn,” Graves said. “Our broad diversification means it is unlikely that all of the industries we work with are contracting simultaneously. Revenue and employment growth of no more than 10 to 15 percent annually is really the sweet spot for us. That’s a sustainable growth rate that means we can hire an appropriate mix of new college graduates and experienced professionals and keep everyone busy.”
Employee Count Rising, Too
Graves also announced that Burns & McDonnell will continue its aggressive recruiting and hiring program in 2008, seeking to add up to 400 additional employees over the next 12 to 18 months. The nationwide employee count totaled 2,600 at year-end 2007, including nearly 1,900 in Kansas City.
Since 2004, Burns & McDonnell has added nearly 1,000 employees nationwide, including approximately 550 in Kansas City. During that time, the firm has expanded to office locations at 10450 Holmes Road and 9201 State Line Road in addition to its world headquarters at 9400 Ward Parkway.
