Dive Brief:
- The country's eighth largest contractor is relocating.
- Multinational engineering firm AECOM announced Tuesday that it would be relocating its global headquarters from Los Angeles to Dallas, effective Oct. 1.
- AECOM's CEO Troy Rudd and other corporate leaders will move to an existing Dallas office, joining more than 1,200 workers there. More than 2,500 employees will remain at the downtown Los Angeles office and other offices throughout California, AECOM said.
Dive Insight:
By moving to the region, AECOM joins Fluor and Balfour Beatty Construction, the country's 3rd and 16th largest contractors, respectively. Balfour Beatty, a U.K. company, has its U.S. headquarters in Dallas. Fluor is based in Irving, Texas, just northwest of Dallas.
AECOM ranked 3rd in 2020 revenue on ENR's Top 400 Contractors list. The builder dropped to 8th in 2021, with $6.6 billion in self-reported revenue.
Some major AECOM projects in the Dallas area include:
- I-635 / LBJ Freeway East. The approximately $2 billion project includes reconstructing and widening 11 miles of I-635 from 12 lanes to 22 lanes; reconstruction major, multi-level interchange at I-30; and a signature steel arch bridge over Skillman Street. The project is on track for completion in 2024, a spokesperson for the contractor said.
- Dallas Independent School District's $3.5 billion 2020 Bond Program. In May, the contractor announced it had been selected for Phase 1 of the $3.5 billion Dallas Independent School District Bond Program. AECOM will oversee and coordinate designers, consultants, contractors and vendors in addition to estimates, schedules and program control services on the construction of new facilities and upgrades to existing ones, the announcement said.
- Comprehensive Environmental and Climate Action Plan. AECOM additionally developed a plan for Dallas to help the city reach targets set by the Paris agreement. The plan includes new policies on energy, buildings, parks, urban agriculture, water, air quality, transportation and waste, an AECOM spokesperson told Construction Dive.
North Texas provides AECOM with "additional benefits as a corporate hub and talent magnet for the engineering and consulting industry," according to the announcement.
The Dallas-Fort Worth area has truly become like a magnet for businesses and workers alike in recent years. Since 2010, 140 companies have moved their headquarters to Northern Texas from the U.S. and abroad, according to an op-ed by JLL Dallas Managing Director Jeremy McGown. More than 45 of those companies moved to Texas from California.
The population of the city has grown substantially, and is expected to grow by 17% by 2030, McGown writes. The increase in population means a larger pool of workers, in addition to increasing demand for multifamily, civil and commercial construction.
Part of the move could also be due to tax rates. California has a corporate tax rate of 8.84% for all businesses making a profit, one of the highest rates in the country. Meanwhile Texas has a "franchise tax," which is how it refers to its business tax, of approximately 1%.
