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Design firms enjoying expanding economy and widening opportunitiesBy Journal staffIn the expanding local and national economy, architecture, engineering and interior design firms are learning to make growth and new opportunities a way of life.
Whether they are cautiously optimistic, very confident or euphoric, each firm is seeking to take advantage of the economic climate in some way. Some are making continued growth a strategic goal while others are taking off in new directions. Growth is being felt unevenly up and down the I-5 corridor. But the wave of development that originates in the Seattle area has not reached Central Washington, according to one of the survey respondents, Yakima's KDF. The firm has nevertheless enjoyed a lull in competition from busy Western Washington architects. One report from Spokane reflects an upbeat business environment. As Northwest firms continue to enter national and international arenas, their day-to-day business challenges are acutely sensitive to national economic and regulatory climates and the local economies where they practice. Some report that growth has increased pressure to upgrade computer and communications systems. Most of the respondents seem eager to take on the challenges of the time and face new ones as opportunities continue to expand.
-- Clair Enlow, Callison Architecture has been actively hiring new staff, with the number of employees now at 361 -- a 10 to 15 percent increase over last year. Gross billings have also risen to more than $40 million.
One of the biggest areas where change is brewing is in the corporate office market, according to Callison interior design principal Andrea Vanecko. For instance, The New York Times reports a five-fold increase between 1984 and 1995 in the number of people who work from somewhere besides the office. Studies show that about 18 percent of companies allow telecommuting, while 30 percent offer flex time. Technology, the workplace environment, and work force behavior are obviously closely linked variables fueling much of this change.
Some of ZGF's buildings completed in 1996 include a new multi-modal facility for The Link in Wenatchee; Science Facility III -- Math, Technology and Science Education -- at Western Washington University; the Environmental Molecular Sciences Laboratory in Richland for the U.S. Department of Energy; and projects on Microsoft's main campus. The Phase II Clinical Research Building on the Fred Hutchinson Cancer Research Center's South Lake Union campus is nearing completion. In Seattle, some of the significant commissions underway include the World Trade Center office buildings for the Port of Seattle and Wright Runstad & Co.; an expansion of Safeco's Redmond campus; continuing work for Microsoft; a new Marriott Hotel along Seattle's central waterfront; a new academic building for the University of Puget Sound; Phase II of the Mary Baker Russell Music Center at Pacific Lutheran University; and two downtown office buildings for Martin Smith Real Estate Services. Design and planning is also underway for a multi-modal facility for the City of Everett and on the Thea Foss Waterway Public Esplanade in Tacoma. Other major projects firmwide include the Mark O. Hatfield Clinical Research Center for the National Institutes of Health in Bethesda, Md.; buildings at Williams College, Cornell University and Johns Hopkins University; major terminal expansions at Portland International Airport; a new office building in downtown Portland for Wright Runstad & Co.; and several light rail transit projects for New Jersey Transit and Tri-Met in Portland. "We anticipate modest growth in the upcoming year, and continued activity in the private sector corporate and commercial markets, as well as health care, research, high technology and hospitality," said associate partner Nancy Fishman. "Our interiors group and planning/urban design group continue to broaden the scale of their respective practices in the Seattle area," Fishman said. "We are developing more strategic alliances with our clients to achieve efficiencies in the delivery of services, and also continue to see trends toward partnering of design, construction and development teams." In 1997, ARC is participating in the expanding market for additional senior centers, community centers and medical and bio-tech facilities. The firm is also watching the federal commitment to military bases in the Puget Sound region and higher education spending for social services and rehab of existing buildings.
This year has been very exciting for ARC. The success of the Tukwila Community Center was followed by winning a design competition for the second phase of the Issaquah City Hall/Community Center complex, and led to the publication of a guide to community center design. The next major center, the Holly Park Community Facilities, will be built in 1998. To compete for future aquatics work, ARC has established a professional relationship with Water Technology from Wisconsin. Water Tech joined ARC's team for this fall's Issaquah design competition. ARC is currently looking for interior designers and feasibility consultants to help us expand into the clubhouse market. After a number of years of feasibility studies for downtown developers, ARC's first historic re-use project, The Lofts, opened in Pioneer Square and the Palmer Court near the Kingdome moved into construction documents. ARC's biggest success was the award of its first new urban condominium, Belltown Heights, across the street from the Austin Bell on First Ave. In 1998, ARC plans to maintain its other markets in health care, bio-tech, biomedical, higher education, military and social service agencies. Health care will expand in tenant improvements, renovation and suburban office buildings. In the health care, bio-tech and biomedical market, ARC has projects at Harborview Medical Center, The Polyclinic, and Minor & James Medical and the 20,000-square-foot Stanwood-Camano Medical Center. ARC sees very limited market changes for 1998. Bassetti Architects is taking part in the current Northwest building boom. The firm size has remained relatively constant, hovering in the low to mid 30s. Sales volume is also steady at around $4.2 million. The portfolio of current projects continues to show a strong presence in the non-profit and public sectors. The restoration and addition to Mary Gates Hall on the University of Washington campus should begin construction in January of 1998. Edmonds-Woodway High School is under construction and will be completed by June of 1998. The WaHeLut School for Indian children of the Franks Landing community on the Nisqually River will be complete before the end of this year. Bassetti projects in design stages include: The Redmond Regional Library, Meadowdale Elementary, Snohomish County Parks Administrative Office and Children's Museum, Canyon Park Jr. High School, Cottage Lake Elementary School and Chase Lake Elementary School. "We are keenly aware of our strength in the institutional architecture market, particularly academic facilities, and will continue working here," said marketing director David Oldham. "Our plans for the future include creating responsive architecture for our diverse community. This will keep us focused on the public sector but will not discount the possibility of growing other viable markets such as cultural, historic, and housing." Baylis Brand Wagner Architects has felt the effect of an expanding economy and a growing population. In response to this growth, the size of the firm has increased by 15 to 20 percent each of the past three years to a current staff of 35. Gross revenue has increased by an average of 15 percent and Baylis Brand Wagner foresees this growth to continue in the coming year. The firm's medium size places it in an optimum position to respond to the needs of clients building a range of projects, from single-family custom homes to large office parks. The firm recently relocated to Bellevue. "The Eastside architectural market is beginning to reflect community responses to the Growth Management Act, the expanding demand for office space, and the implementation of the Regional Transit Authority," according to principal Brian Brand. "Baylis Brand Wagner Architects is partially defining our design focus to respond to these same issues and taking what we have learned to help our clients plan for future growth with high-density housing and mixed-use projects." Offices, multi-family and mixed-use projects are currently being designed and built in Bellevue, Kirkland, Issaquah, Redmond and Bothell. The firm is also involved in office projects such as the Maple Street Office Building in Issaquah and the Liberty Northwest Office Building in Bellevue. "Although we have had continuing success with procuring design commissions," said Brand, "we face the ongoing challenge of finding new employees that can help us meet the demands of this burgeoning marketplace." Notkin Engineering Inc., a mechanical engineering firm, has a staff of 24. The staff size has increased moderately over the past year and this rate of increase is expected to continue. Total fees to date in 1997 are slightly less, yet profit is higher. Significant projects in the Puget Sound area include Benaroya Hall, the Experience Music Project, the International Glass Museum, the Benaroya Research Institute at Virginia Mason, and the Bremerton Naval Hospital addition, alteration and parking structure modifications. KPFF Consulting Engineers has increased its staff firmwide by 25 percent in the past year, adding 20 people to the 120-person Seattle office. The growth is attributed to the strong Northwest economy and growing markets. "We have seen an impressive overall growth in the region, requiring new infrastructure, particularly with the emergence of the RTA projects," said Ralph Iboshi, vice-president and head of the Seattle office. The structural and civil engineering firm has experienced a 35 percent increase in billings within the last fiscal year. The firm was ranked 206 on ENR's "Top 500" list and identified in World Architecture as one of the top 50 structural engineering firms in the world. It continues to innovate in seismic design. As part of a four-phase development for Safeco, KPFF is designing a two-story, 60,000-square-foot, base-isolated data center for the company. The Bridge and Marine Structures group is working on the external post-tensioning of the Evergreen Point Floating Bridge for WSDOT, along with the seismic retrofit of several bridges in King and Snohomish counties. Bridge engineering continues to become a significant portion of the firm's work load, including the recently awarded pedestrian bridge over I-405 for the City of Kirkland. KPFF recently added services for structural inspections, evaluations and rehabilitation of reinforced concrete structures to its firm. Leading this group will be Bill Cichanski, PE, whose prior experience with Construction Technology Laboratories includes the development of design and construction guidelines for concrete structures and project management for failure analysis and repair. Within the public sector, KPFF has seen a steady increase in both structural and civil projects for such agencies as the state higher education system, the National Guard, King County and several long-term projects for the U.S. Navy. The firm was recently awarded a civil on-call contract with WSDOT to support its architectural office's maintenance and building projects. With the near completion of the University of Washington Southwest Campus Utility Infrastructure project, KPFF will begin initial design for Washington State University's Infrastructure project. This is the first infrastructure improvement project WSU has undertaken in over 20 years and will ultimately support the future building program and growth on the campus. "One of the challenges we see emerging is the significant demand RTA projects will place on local engineering resources and how this will affect the servicing of architects for continued private sector development. With our firm's steady growth, we are well positioned to continue providing high-quality service for clients," said David Seman, principal. KPFF has also seen an increase in providing services to the landscape community for various parks and recreational projects, as well as roadway projects. The firm continues to be involved in the final build-out of Redmond Town Center. Other Eastside development projects include Fountain Court Office Park, Sunset Corporate Campus Phase II and the Bellevue Galleria retail complex. KPFF is seeing an increasing number of hotel and hospitality projects. Such projects include the new 28-story Starwood Hotel in downtown Seattle and the Marriott hotel on the central waterfront. This has been a year of growth for the Special Projects Division, with work on a variety of port, airport and industrial projects. Most visible of those projects were the Port of Long Beach's Pier T Container Terminal and the Port of Seattle's Terminal 5 expansion for APL and Terminal 18 expansion for Stevedoring Services of America (SSA). The combined construction value of these three projects exceeds $400 million and work is expected to continue through 1998. The division is also involved in projects in Korea and the Philippines and numerous smaller projects in the western U.S. Overall, the firm is experiencing strong work volumes in most market sectors, including education, commercial and high-tech, civic, health care and retail. Current and recently awarded projects include: Fred Hutchinson Cancer Research Center Phase III, the University of Washington-Bothell Cascadia Community College Campus, King Street Center, World Trade Center and the SeaTac Airport Concourse A South Terminal.
Elliott Bay Design Group, a marine engineering and ship design firm, has experienced significant expansion during the last 12 months. Over 30 percent of the current 45-person staff has been hired during that period, and the firm has hired more than 12 subcontractors to work on one large project. Overall, construction volume has increased by approximately 50 percent. Significant projects include a marine engineering project that will be the largest known passenger SWATH (Small Waterplane Area Twin Hull) vessel ever built in the United States. A housing barge contract with the Army Corps of Engineers' Marine Design Center is part of an upgrade program. Another contract calls for designing a specialized seismic research catamaran that disassembles for shipment to remote sites. EBDG sees continued strong activity in the ship design and construction markets. Much of this is being fueled by the oil and gas industries and is expected to last for another four to five years. This represents continued opportunity in supporting shipyards with detail engineering and in providing new vessel designs to U.S. clients. Other market sectors such as fishing vessels or tug boats will remain flat. Internationally, we see continued interest in high-speed vessels for passenger and freight operation. Countries such as China and Indonesia have critical needs for waterborne transportation. Much of the design technology for this will come from outside that region. Continued success in hospitality design has catapulted this firm both in size and billings over the past year. Staff has increased by 125 percent. Billings have increased by over 400 percent from the previous calendar year. This will likely rank D&D among the top 25 hotel design firms nationally for 1997. Hotel renovation, both architectural and interior design, remains strong. New construction of hotels has also contributed greatly to the firm's growth this past year. Projects are located throughout the United States, with growth this year extending to British Columbia and Alberta. Work in 1998 is expected to remain strong, equally divided between new construction and renovation. Projects will likely remain distributed nationally and through Western Canada. Within R.W. Beck's range of consulting engineering services -- from management consulting to project feasibility studies to construction management -- "plans-and-specs" design continues to be a vital element, and the Seattle office's related sales and staff size have been consistent with the marketplace. Locally, the firm is especially active in the areas of hydroelectric and other electric power-related facilities, water and wastewater, and surface-water management. R.W. Beck anticipates beginning work on the Boundary hydroelectric plant for Seattle City Light before the end of the year. The Boundary rehabilitation is one of the largest hydroelectric projects in the industry right now, as is the gate design effort that R.W. Beck is performing for the Metropolitan Water District of California. The firm is also handling a number of design tasks for the Portland District Army Corps of Engineers related to fish passage at Bonneville and The Dalles hydroelectric plants. It recently completed design work on the Talbott hydroelectric facility in Virginia. R.W. Beck is in the early stages of designing significant structural and process improvements for a water treatment plant in Tuscon, Ariz., and for pump stations for the Cowlitz County Consolidated Diking District No. 2 and for the City of Burlington, Wash. They are also working on slide-area improvement designs for Edmonds and Meadowdale, and drainage pipeline improvements for Renton and Snohomish County. In the area of solid waste, R.W. Beck is designing the first cell of a lined landfill for the City and Borough of Fairbanks, and will be working on upgrades to some of Snohomish County's transfer stations. The firm is also currently working on a gas-insulated substation for the Guam Power Authority, a series of upgrades to Grant County's electrical distribution system and is providing transmission-line design work for Grays Harbor County. McGowan Broz Engineers, a Bellevue-based mechanical and electrical engineering firm, has enjoyed steady revenue growth over the past year, according to principal Bill Broz. Gross income is forecast at just over $1 million for 1997, a 10 percent increase over 1996. Staff size has held steady at 10 during the period, but the firm is currently hiring. According to Broz, growth is attributable largely to a continuing, solid base of municipal infrastructure work, as well as the quickening tempo of resource development in the Russian Far East. McGowan Broz specializes in infrastructure engineering for local governments and industrial/manufacturing facility design. Market niches include airport and harbor development, transportation projects, water distribution systems, prime and standby power plants, and aviation fueling systems. As part of a recent design-build contract, McGowan Broz is currently designing a prime power-generation facility on Sakhalin Island, Russia -- the firm's second Russian project. Broz commented that continuing oil and gas development on Sakhalin and elsewhere in the Russian Far East bodes well for the firm's future work in the region. The firm has also noted increased client interest in economic analysis services over the last year. Broz observes that project owners seek this capability for assistance in making go/no-go decisions, or as part of an integrated project delivery system including feasibility, design, consultation and construction. Looking to the coming year, McGowan Broz foresees a strong Puget Sound area economy, leading to even further infrastructure development. Growing activity by the Regional Transit Authority, as well as spending on other high-profile public projects, will accentuate this trend. As a result, the firm forecasts its revenue and staff size to increase at least 30 percent in 1998. Building on this strong local base, McGowan Broz expects growth in its overseas work as well. GGLO's staff size has increased 35 percent in 1997, to a total of 75. Projected gross fee revenue for 1997 is $6.5 million -- up from $4.7 million in 1996. As we ride a strong economy into 1998, GGLO is pursuing growth in several key markets. Work at the University Village shopping center has strengthened the firm's retail portfolio and GGLO anticipates a substantial increase in this market. University House in Wallingford, a 142-unit senior and assisted living project, represents a growing presence in the senior living market. Housing continues to be a strong and diverse market for GGLO. Project types include: low-income apartments for nonprofit developers; market-rate garden and townhouse communities in Oregon and Washington; and luxury condominiums such as the Waterfront Landings project on Elliott Bay. Corporate interiors include recent tenant improvements and shell work for a variety of clients including a national investment firm with locations in Memphis, Dallas and Denver. Hospitality work has expanded to include golf clubhouses as well as continued hotel work with the design of a luxury suites addition to the Inn at Langley
The local office of Hellmuth, Obata & Kassabaum (HOK) is the newest addition to the St. Louis-based corporation. Currently, HOK has an staff of over l,800 located in 24 offices globally. This network of offices offers analysis, planning and design services to a variety of focus groups including: health care, aviation, justice, sports, industrial and corporate facilities, transportation, convention centers, science and technology, and senior living. The local office is the Senior Living Focus Group lead for the entire HOK organization. It is led by Senior Vice President Dennis Cope. HOK/Seattle opened its doors officially in June l995 after 18 months of real estate analysis, planning and programming consulting services for Microsoft. These consulting services led to the selection of HOK to design the Microsoft Augusta Campus, now under construction. The office has nearly tripled in size since the June l995 opening, and anticipates additions to the architectural and interior design staff by the end of the year. Growth of the office is attributed to continuing assignments by Microsoft as well as projects from other Northwest employers including Boeing, Compaq, Lexant, Interpoint, The Seattle Aquarium, Wesley Homes and Marriott. Currently HOK is working on various Microsoft MAC (Move Add Change) projects; an addition to the Senior Living Campus for Wesley Homes in Des Moines, Wash.; Marriott's Brighton Gardens assisted-living facility in Bellevue; New Bern Convention Center, New Bern, N.C.; and multiple senior living facilities in Japan. In addition to the two local senior living projects mentioned above, HOK is designing several additional long-term care and assisted-living facilities near Tokyo for a Japanese developer/operator of senior living facilities.
In the past year, the size of WaterLeaf Architecture and Interiors has remained stable. But due to a strategic shift in direction, the Waterleaf sales volume of 1997 was lower than in 1996. WaterLeaf is focusing more on community design-oriented projects and less on the commercial projects. Community-design projects include The Music Man Square in Mason City, Iowa, a community and performing arts center serving as a tribute to midwestern towns and American musical history. Waterleaf is also working on the HOWL Wildlife Rehabilitation Center in Skagit County, and the AIDS Memorial Garden for Rise N' Shine, an organization which provides emotional support to children and teens affected by AIDS. The firm continues a working relationships with King County/Metro Transit, and several health care clients. Waterleaf provides planning, design and construction administration services to a variety of clients. Major project types include health care, community/arts centers, transit and custom residential. Duarte Bryant Architecture will celebrate its 10-year anniversary in 1998. The firm's practice, which focuses primarily on educational facilities, also specializes in historic restoration of old buildings and the development of state-of-the-art teaching and research laboratory facilities.
Duarte Bryant has also begun to apply its higher educational experience to the development of K-12 schools. In 1995, the firm completed the historic restoration and modernization of Lincoln Elementary School, the oldest building in the Olympia School District. Currently, Duarte Bryant is in the process of developing plans for the historic restoration and modernization of Seward School for the Seattle School District. Seward's campus is comprised of three separate historic school buildings. Last year, following a three-year search for suitable space, the 10-person firm purchased the historic, four-story City Club Building in Pioneer Square for its new headquarters. The practice has since grown by five new employees and includes the formation of a new business development position within the firm. Duarte Bryant foresees future growth of about 15 percent per year. Revenues have grown steadily and current construction volume is approximately $25 million, which will increase to approximately $32 million in 1998. The demographics of this area and the need to educate our future work force should continue to fuel growth in targeted markets. Chalker Putnam Collins & Scott The Tacoma-based consulting structural engineering firm of Chalker Putnam Collins & Scott saw a 13 percent increase in work load this past year. Higher education, numerous small and medium-sized projects and a rebound in K-12 educational design resulted in most of the increase. This was a year that saw many of major projects either completed or under construction, including high schools for Kent, Issaquah and Mercer Island; a new science building for Central Washington University; the Snohomish Juvenile Detention facility and the University of Washington Tacoma campus. "As structural engineers who specialize in consulting to architects, our work load is a direct reflection that most of our architectural clients are busy," said Dan Putnam, president of the firm. It took over $325 million in building construction last year to grow the medium-sized firm from 25 to 29. The firm's Seattle office is expected to see most of the overall growth over the next several years. Current projects include Seattle University School of Law, the University of Puget Sound Academic Building, Pierce County Jail expansion, Olympia High School and a number of other major school projects. Keeping pace with architects' different approaches to CAD technology is a major focus of the firm for the coming year. Different "layering" systems are a constant challenge to production capabilities. SvR Design Co. has grown in the last year to a staff of 27, hiring five new engineers, including several construction engineers, and a new landscape architect/wetlands specialist. Billings for 1997 are projected to be about $2 million, up 8 percent from last year's level. Seventy-five percent of SvR's work is in the public sector and feasibility planning for future improvement projects is growing. This component of the work increased significantly in the last few years. In the last year, the firm has added ecological restoration/wetlands assessment capabilities. Current projects include the Holly Park redevelopment for the Seattle Housing Authority and Popkin Development, several projects for the Port of Seattle, and the Ravenna Creek daylighting study for King County. Continuing the pattern of the last couple of years, schedules are still getting tighter. Difficult sites are being developed with more costly site improvements. Owners are including civil site work in the programming phase more often due to the cost and permitting impacts of finding out issues late in the design. Over the past year, Mithun Partners has been seeking out and hiring new staff members. Responding to an increased workload since the beginning of 1997, staff size has grown from 78 to a current staff size of 100. Services provided to clients are projected to increase from approximately $7.5 million in 1996 to approximately $8.5 million in 1997. Mithun Partners' strategic plan has allowed the firm to respond to strong demand in the marketplace, locally, regionally, nationally and internationally. Projects completed in 1996 include the REI flagship store; the renovation of the Lyon Building for Aids Housing of Washington, the Salish Spa, the visitor's center at Northwest Landing in DuPont, and the Bainbridge Island Fire Headquarters. This year brought additional expansion in office work for Mithun, including headquarters space for Foss Environmental, renovation of the Smith Tower and the Millennium Corporate Office Campus. Medical work continues with Swedish Hospital, Northwest Kidney Center and Providence. Retail work has grown with additional projects for Seattle's Best Coffee and prototype work for Albertsons and REI. Hospitality work is expanding, with additional golf clubhouses in Washington, California and near Bejing in mainland China, along with regional hotel work. Municipal work is expanding as well with new city halls and fire stations on the boards throughout the Puget Sound region. Housing is very strong with projects nationwide, including high-density, single-family, urban high-rise projects and mixed-use structures in downtown Seattle, Bellevue and other Washington state locations. Mithun is also active in Idaho, Utah, California and Japan. Projects include the Victoria Townhouses, the Fujisada Building in the International District, Highland Creek and the Luna Court Condominiums. Mixed-use master planning is going on throughout the United States, Japan and Korea. Local projects include Northwest Landing, Snoqualmie Ridge Village Center and McCormick Woods. Special needs housing projects on the boards include two high-rise facilities, in addition to several large Continuing Care Retirement Communities in Washington and Oregon. Costs are anticipated to rise in the coming year, both in terms of business operations and construction costs. The coming year will see additional pressures on equipment, software and training costs to maintain Mithun as a leader in the use of technology. Anticipated increases in construction costs will demand more creative solutions for higher efficiency in the use of space for clients, an area of Mithun Partners' expertise. The most single most important reason for the 15 percent growth in the staff of GeoEngineers staff -- from about 130 to 156 staff members -- has been the significant increase in work this past year. Growth demands strong team members who can handle an atmosphere that is changing daily. Staff members need to be able to change hats and provide different levels of support and expertise on projects depending upon the scope, what makes the most sense from the client's perspective, and the relationships that are already in place with each client, according to marketing director Gayle Guadarrama. Fee growth throughout the firm's five Washington offices is currently projected to increase 20 to 30 percent over 1996 revenues of $8.1 million. A strong market this year enabled GeoEngineers to fulfill a goal discussed many times: opening a downtown Seattle office. In Spokane, the firm hired an environmental scientist that knows the region well. The economy in that market is strong. GeoEngineers will emphasize growing the firm, both geographically and through service expansions. Growth will "make it possible to continue to offer our staff the kind of opportunities that are needed to keep top-notch people," Guadarrama said. GeoEngineers sees many growth markets, including ports, transportation and related issues. There are also opportunities in aviation, shipping, petroleum products transportation and some agriculture markets. Other markets that are expected to continue to grow include the area of lineal structures, cable systems and pipelines. The idea of doing more international work continues to be very attractive to the firm. "Decisions regarding this risky business, are always based on a risk/rewards equation," Guadarrama said. KDF Architecture of Yakima has remained approximatlely the same size for the last four years, at 16 people. During the last year, the firm added another licensed architect for a total staff of 17. Approximately 60 percent of the work is health related, ranging from low-cost clinics to sophisticated hospital surgical and diagnostic environments. The balance of work is largely other commercial or institutional projects. Marketing director Christopher Swanson reports that the volatility of the Central Washington market is typically not as high as the Seattle area. One of the few impacts of Seattle's growth is that there may be fewer Seattle firms seeking local work in competition with Yakima firms. One project dependent on philanthropic contributions, the $4.2 million Children's Village, might not have been possible without a healthy economy. CNA Architecture has undergone several changes since the first of the year. One is a new identity. Another is a new location in Bellevue's Rainier Plaza. The most significant change is in marketing strategy, says Arlan Collins, managing partner. Rather than focus on marketplaces, CNA is selling across marketplaces to clients who share the firm's entrepreneurial values. This strategy requires a repositioning effort, now in progress and intended to be in effect by the time the firm celebrates its 10th anniversary early next year. Revenues are flat as the firm begins to reposition. Staff size continues to average 30 architects plus support, but there have been a number of personnel changes consistent with the new marketing focus. Collins says the firm is hiring people who are willing to be cross-trained and to learn how to integrate related services. The intent is to make better use of resources and to provide better value to the firm's clients. Projects in progress include preliminary plans for multiple mixed use developments in downtown Bellevue ranging from $30 to $60 million in construction costs.
Northwest Architectural Company
Market share in the firm's specialties -- architecture for education, health care, and research & technology -- has increased. The development of in-house expertise in a number of medical specialties has resulted in dramatic expansion in the health care market on a state-wide basis. Secondary and higher education projects have made up a larger portion of Northwest Architectural Company's educational facility mix than in prior years. Recent significant projects include the Highline Hospital Addition, currently under construction, the Mount Spokane High School, which opened in September, and the Puyallup High School, currently in the design development phase.
The staff size at Bumgardner Architects has grown by 20 percent over the last year, and revenue has increased by 58 percent. The business environment is good, according to principals with the firm. The general positive economic atmosphere has made financing easier. Clients have more confidence to proceed with projects that have been on hold, and to venture into new markets of their own making. The overall economic mood seems very positive, giving developers and their investors the confidence to jump in. Most indications seem to suggest that the positive mood will continue for at least a year to 18 months. The firm says the robust economy and the affects of the Growth Management Act are major impacts on the industry. The rate of inflation in the local construction industry is skyrocketing and not sustainable at its current pace. At the same time, the Growth Management Act has effectively reduced the inventory of available land, forcing development of more challenging and costly sites. "The suburbs are changing for the better," said principal Mark Simpson. "The need to preserve open space and cut infrastructure costs has caused planners, governmental agencies, and developers to rethink how suburbs are built. No longer is the layout of a subdivision left to the civil engineer. Architects, planners, landscape architects, and market research professionals are now working as a team with civil engineers to create neighborhoods that mix housing types and uses to form whole towns." The firm is continuing work on the new town of Providence Point, and is also at work on a 3,000-acre new town in Utah, a 1,000-acre community outside Seattle, and numerous smaller neighborhoods. "I think it's fascinating. . . what we are going through right now. I think it's different than anything Seattle has seen before, since our economy has diversified in so many areas. As the economy shifts and changes in ways that are difficult to foresee, we want to be able to continue designing and constructing buildings with care and quality," said principal Tim Hossner. In the meantime, the firm is able to select interesting and challenging projects like community-oriented retail, mixed use, new towns, churches, theaters, and hotels. Planning work has expanded to the point that the firm is changing its name from The Bumgardner Architects to Bumgardner and adding "Architecture, Planning, and Interiors" under the logo.
Staffing at Carlson Architects has remained constant at nine people over the last year. However, significant changes in staff have included the addition of Greg Waddell, urban planner, formerly of Dames and Moore. Architects Stewart Green and Andrew Russin have also recently joined the firm. With the addition of Waddell, the firm is concentrating new efforts on neighborhood planning and urban design. Carlson hopes that his own experience in this area combined with Waddell's skills and expertise will allow the firm to continue expanding in this area. The firm is currently working on the Growing Vine Street planning project, as well as the Pike-Pine neighborhood plan. The firm has also been awarded planning projects in West Seattle and at Snoqualmie Pass. Current on-going work on several major institutional projects includes the following: a major addition to the University of Washington School of Social Work; remodel and additions to Lakeside School and Overlake School; remodel and additions to Sanislo Elementary School in West Seattle; and new construction for the North Mason County Library in Belfair. Other current projects include several residences, retail and commercial projects and preliminary design/planning projects for The Center for Spiritual Living, the Ports of Seattle and Bellingham and the Manson Bay Market. The value of the built work currently under contract with the firm is approximately $10 million, up slightly over a year ago. "We pride ourselves in being a design-intensive firm," said principal Don Carlson, "and we expect to continue practicing diverse architecture, from specialty residential to office/laboratory buildings to urban design and planning."
Coffman Engineers, Inc., a structural, mechanical, electrical engineering firm, has increased staff over the last year by about 9 percent: from 117 employees one year ago to 128 today. Most of the growth has occurred in the Seattle office, with office workload still based on strong markets in health care, office buildings, technology, hospitality, and program/construction management. Coffman Engineers maintains other full-service offices in Spokane and Anchorage. Spokane continues to serve industrial and commercial private sector clients. The Anchorage staff continues to work in the oil and gas sector, public and military markets. The firm saw an increase in gross sales of about 12 percent from 1996, on a total volume of approximately $13 million. We are still benefiting from a strong local economy and the success of long-term clients with global and national markets. Coffman Engineers will provide structural, mechanical, and electrical services to the Callison Architects design team for the River Park Square Mall Project in Spokane. This $100 million project will be a key investment in the revitalization of downtown Spokane. Other major projects include St. Andrews office building for Microsoft, continued national expansion for Nordstrom, the new Washington State penitentiary in Grays Harbor, and new oil field infrastructure development in the Sahkalin Islands, Russia. Coffman Engineers is currently finishing up the program management for the $95 million program for the Yakima School District, and is providing construction management support to the Benaroya Music Hall in downtown Seattle. Coffman Construction Management has managed over $2 million in improvements for assisted living, condominium, and industrial owners in Alaska and Washington.
Abacus Engineered Systems, Inc. completes mechanical, electrical, energy and lighting design on more than $40 million in building systems each year, and for the past three years has served as performance contractor on more than $10 million in construction. Abacus commissions, tests and balances its own work and systems designed by other firms. The firm is now working in Washington, Oregon, Alaska, Idaho, California, North Dakota, and Nevada in the U.S. and in China, Japan, and Korea. Abacus has, in the past year, added two testing and balancing technicians and an additional construction manager to our staff. The mechanical and electrical groups have increased their respective staffs by two, and the electrical team has also hired a communications specialist. A fifth CAD technician has been hired to keep up with the increasing workload. Gross revenue has increased by 30 percent to over $13 million. Abacus has secured a number of major consulting projects, including contracts with the US Navy, Yakima Valley Community College, and the state Department of Corrections. In addition, the firm has recently completed some very significant projects: Seattle University's Chapel of St. Ignatius, the new Pacific Science Center IMAX Theatre, Shanghai American School, and Starwood Hotel. The demand for Abacus' performance contracting services continues to grow, with projects for the Federal Way School District and new contracts with the US Army, Central Washington University, and LOTT wastewater Management Partnership. Abacus expects to expand its services as the needs of design and construction clients shift from capital improvements to infrastructure rehabilitation, and with energy deregulation in the State of Washington continues.
Zervas Group Architects of Bellingham has seen a reduction in employment as staff members have taken advantage of the booming economy to start new firms or pursue opportunities elsewhere. This has made it very difficult to find replacements. Zervas is currently hiring, and has exceeded annual sales projections after only three quarters. The firm is trying to be more focused in marketing, concentrating on the clients and project types that it can compete effectively for with "out of town" firms, said principal Mike Smith. Now under construction is a new classroom and daycare facility for Whatcom Community College and a 50-unit senior housing project for the Whatcom County Housing Authority. Zervas is currently designing a 25-unit family housing project for the Bellingham Housing Authority, a headquarters and maintenance facility for the Whatcom Transportation Authority, a faculty office addition for Western Washington University and a new branch bank. Zervas has recently hired an interior designer, and hopes to add another one or two staff members to meet current demands for design service. With a current staff size of ten, the firm serves the upper four county area, with particular emphasis on Bellingham and Whatcom County. Projects are 75 percent public and 25 percent private.
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