INFRASTRUCTURE AND SUSTAINABLE INVESTMENTS BOOST GROWTH

A significant rise in the value of the latest d&ri100 table reflects a sector that is seeing an increase in demolition works being carried out in most regions around the world

In March 2023, Beelen Sloopwerken was renamed Adex Group, following a management buy-out in 2022

PHOTO: ADEX GROUP

The 2023 d&ri100 paints an optimistic picture of the future. Total turnover for the full listing (of which this is an edited version) was up by just shy of a billion dollars, increasing by US$911 million on last year’s total of US$6.8 billion, to US$7.7 billion.

This significant increase speaks to the rise in demolition works being carried out around the world due to increased infrastructure spending following the economic downturn of both 2021 and 2022. However, it further shows that the industry has a depth of financial and operational flexibility that few other sectors possess.

European focus

Of the companies that made it onto this year’s top 100, half of them were European. Collectively they accounted for US$3.8 billion of the total turnover and while most of the 49 representative companies showed an increase in turnover, ten experienced a decrease, and one has since gone into administration.

Looking ahead, Europe’s acceleration towards Net Zero and greater sustainability will likely see the region become ground-zero for the development of some of the world’s most innovative technologies, equipment and working methods.

In 2022 O’Rourke abated and deconstructed the Millennium Hotel in downtown Cincinnati, Ohio, US, removing both a 34-storey tower and a 22-storey tower

PHOTO: O'ROURKE

Tiny’s Demolition & Recycling saw substantial growth in 2022, with a turnover of US$22,000,000

PHOTO: TINY'S DEMOLITION & RECYCLING

Last year saw Independence Excavating implement several new technologies into its operations, including drones and 3D Lift Plan software

PHOTO: INDEPENDENCE EXCAVATING

Tighter environmental regulation and higher expectations from clients with regards to carbon emissions and recycling rates have already provided fresh opportunities for demolition contractors to show how the work of the industry can benefit both the environment and communities.

With this, and the adoption of more environmentally friendly practices set to rise around the world, a period of growth now seems to be firmly on the cards.

Over the past 12 months, a good number of European contractors have made hefty investments in their operations.

For example, Netherlands-based company DDM recently invested in two 3,000-bar water cutting and cleaning units and is continuing to invest in its energy-efficient fleet.

Spanish company Lezama also made substantial investments, adding new high reach excavators such as the new Liebherr 960R Demolition to its fleet, and agreeing a fleet management contract with Hitachi. The company is also working in consortium on six different projects that aim to develop new recycling techniques for construction and demolition waste.

North America

Contractors from the US dominated the number of new entrants onto the 2023 ranking. This year saw eleven American contractors enter the list, with one of them, JDC Demolition, joining the top 20.

While the Canadian contingent numbered only four contractors this year, they all ranked in the top third of the list, with Priestly Demolition Inc, Murray Demolition and Delsan-AIM also making the top 20 North American firms.

Most contractors in the region saw a rise in their turnover figures and, although roughly a third of companies experienced a decline, newer administrative initiatives, such as the Build America, Buy America Act, seem to be having a positive impact. Coupled with President Biden’s trillion-dollar infrastructure investment, which aims to tackle the backlog of ageing infrastructure, the outlook for contractors operating in US seems set to improve further.

Rest of the world

Elsewhere in the world, companies in Australia, Brazil, Chile, Japan, and South Korea, have provided us with what appears to be a similarly optimistic glimpse of the demolition sector. Australia is among those leading the way in sustainability, as evidenced by contractors like Liberty Industrial, which has just begun recycling 150,000 tonnes of steel at Rio Tinto’s Gove Refinery.

All of the contractors from the abovementioned countries showed an increase in turnover. When looked at alongside the news reports received by D&Ri over the past 12 months, it can be stated that, while some of these countries have not seen the same level of post-Covid stimulus spending, there is still a general indication of upwards momentum. IC

ABOUT DEMOLITION & RECYCLING INTERNATIONAL

Demolition & Recycling International magazine is the only magazine for demolition and recycling professionals.

It is published four times a year and holds the industry-leading event, the World Demolition Summit, every year. The d&ri100, a list of the top 100 demolition companies by turnover – of which this article is an edited version – was published in the November/December issue.