I'm afraid that investors have lulled themselves into a false sense of security regarding the various engineering, procurement, and construction (EPC) contractors. Global infrastructure boom? Of course -- no-brainer!
URS management noted "budget shortfalls and deficits facing many state and local governments," which may put a serious damper on infrastructure spending over the next year or two. For example, in the firm's 12 key states, 2008 spending is projected to grow only 3.4%, versus 10.2% last year. California and Florida should be particularly hard-hit, partly because of housing hokum.
Much like Shaw Group
Outside the power sector, URS also counts industrial giants like BHP Billiton
- Fellow Fool David Lee Smith sees some real opportunities in the sector.
- The nuclear industry faces an alarming problem.