by Marty Minchin

Created on: May 05, 2009   Last Updated: May 11, 2009

In early May, the stock market jumped after a surprising report of an increase in construction spending following five months of decline. That positive news, along with growing worldwide demand for infrastructure and energy, makes this a good time to invest in some construction companies.

Experts agree that world will continue to consume more and more energy, and construction companies with the experience and expertise to build everything from fossil fuel excavation facilities to wind turbines are poised to gain big business.

Several large U.S. companies already have established an international presence and continue to secure large projects around the world, sometimes through partnerships with local companies.

Bechtel (FLM, PXR), the largest construction and engineering company in the United States, saw a 16 percent increase in revenue in 2008 despite a tough market and falling commodities prices at the end of the year. Bechtel manages construction projects that include oil refineries and nuclear reactors, and it recently won a contract for a multi-billion dollar rail project in the United Kingdom.

The company also has announced a renewed emphasis on alternative energy, and it retains a strong foothold in more traditional energy markets such as nuclear and fossil fuels.

While Shaw Group's (SGR) stock has swung high and low in the past year, analysts say it shows bullish tendencies. Shaw Group, a construction and engineering firm based in Connecticut, holds several contracts for nuclear power plants, an energy source that President Barack Obama frequently mentions when talking about the future of energy in the U.S.

Shaw Group's stock price recently fell when construction on a nuclear power plant in Florida was delayed, but the company has solid, long-term involvement in nuclear power that should keep it strong.

Fluor Corporation (FLR) has relied on a large backlog of projects to keep the company stable through the recent economic slowdown, and now the company is establishing itself as a player in building nuclear plants and alternative energy initiatives. Fluor recently announced a partnership with a British company to develop offshore wind farms in the U.K.

The company is a world leader in engineering, procurement, construction and maintenance services. Fluor built nine nuclear facilities in the 1970s and 1980s, and its experience and reputation should make the company a strong contender for U.S. and international energy infrastructure projects.

Quanta Services (PWR), which designs, installs and maintains network infrastructure, is quietly establishing itself as a leader in constructing "smart grids," advanced systems for electric power companies that regulate power usage and greatly increase energy efficiency. Current power grids will be unable to handle energy demands of the future, and Quanta has the capability to build the infrastructure to better distribute power to individual consumers.

One of Quanta Services' primary strengths is its ability to lay multiple networks in the same right of way at the same time-sometimes in the same trench-saving money and making infrastructure construction much more efficient. Few companies have Quanta's capabilities to a build a complete network, including substations, transmission lines, control systems and towers.

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