Skanska Plans Push Into Major US Cities
Swedish construction and development company Skanska (winner of the $3.6B contract to modernize NYC’s LaGuardia Airport, shown above) plans to expand its footprint across major cities in the United States. The builder has identified San Francisco, Los Angeles, New York, Denver, Dallas, Atlanta and Miami as places it wants to expand.
The company plans to hedge against broader economic deterioration in Europe by expanding the size and geographic reach of its commercial development arm, according to Reuters. Skanska USA president and CEO Richard Cavallaro says the company’s existing presence in Seattle; Washington, DC; and Boston remains strong. He adds prices have likely peaked, however.
Investors and market watchers have been cautious about the industry's performance in 2016. Stockbridge Capital’s Steve Steppe previously told Bisnow 2016 returns in places like the Bay Area could be weaker due to a broader economic slowdown.
Skanska exists in the US as four business units: USA Building, USA Civil, Infrastructure Development and Commercial Development. Financial information published by the firm says it generates $7.1B in revenue from US operations, or one-third of total global revenue. [Reuters]
