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Arcadis to sell most of its architecture business and cut 1,000 staff following WSP's failed takeover bid. World's third biggest employer of architects to focus on sectors 'where structural demand is strongest' The Curv, a 60-storey passivhaus tower in Vancouver designed by Arcadis' architecture business Arcadis is planning to sell most of its architecture business and cut 1,000 full-time staff from its wider business as part of a restructure following a failed takeover bid by WSP. The consultant said it is "actively changing its portfolio" by concentrating investment in sectors and markets where "structural demand is strongest". Arcadis is currently ranked as the world's third biggest employer of architects, with 1,781 architects on its payroll out of a total headcount of around 34,000, according to this year's WA100 list of the world's biggest practices. It claimed its "rightsizing" strategy will see mid-single-digit revenue growth and increase its operating EBITDA margin by around 100 basis points to approximately 14.5% by 2027-2029. Arcadis unveiled plans for the restructure in its home city of Amsterdam at the end of last month, just a week after WSP formally abandoned its intended takeover of the firm. WSP said on 23 September that it had been "unable to engage" with Arcadis after having two bids that valued the Dutch consultant at around £3.8bn turned down over the summer. Sectors which Arcadis said it wants to focus on include transportation and energy and water, which account for a combined 53% of net revenues. It is targeting net revenue growth of mid to high single digits for transportation and high single digits for energy and water. The firm is also seeking high single digit growth in high-growth sectors such as industrial manufacturing and technology, which account for 21% of revenues. The sector includes data centres, life sciences and semiconductor manufacturing. But it plans to divest "non-core" assets including the majority of its architecture business and China operations including its activities in real estate and development, which account for 26% of its net revenues. Arcadis chief executive Heather Polinsky said the restructure is "designed to translate our strategic strengths into stronger growth, higher margins and cash generation". "We are building a more focused, higher-performing Arcadis that delivers sustainable value for shareholders, our people and our clients," Polinsky said. Chief financial officer Simon Crowe added: "The financial rationale is compelling: a more focused portfolio, a structurally lower cost base and disciplined capital allocation will support higher margins, stronger cash generation and sustainable shareholder returns." Arcadis' entry into the architecture sector stared with its acquisition of US practice RTKL in 2007, followed by its acquisition of Seattle-based Callison in 2014. It merged the two practices to form CallisonRTKL in 2015 with the business later referred to as CRTKL. Arcadis has long considered selling its architecture arm, first tabling the move in 2017 before recommitting to the sector before acquiring Canadian multi-disciplinary firm IBI Group in 2022. Arcadis then combined CRTKL and IBI Group to create its Architecture and Urbanism division. Most commented. No comments yet. You're not signed in.

WIFA advances Northern Gulf of California Desalination project. By Fernando Mares | Journalist & Industry Analyst - Mon, 10/05/2026 - 13:27 DIA assistant The Water Infrastructure Finance Authority of Arizona (WIFA) approved the appraisal scope for the 1.7 million m[3]/d Northern Gulf of California Desalination Plant, a cross-border project in Baja California led by a Sacyr-headed consortium. This initiative establishes a binational water exchange mechanism to alleviate severe regional drought while bypassing rigid delivery constraints under the 1944 Water Treaty, which triggered tariff threats and diplomatic disputes during the 2020-2025 delivery cycle. The project directly impacts infrastructure developers, municipal water authorities, and agricultural producers across northern Mexico and the southwestern United States navigating transboundary water security. The Water Infrastructure Finance Authority of Arizona (WIFA) Board of Directors approved the appraisal scope for the Northern Gulf of California Desalination Plant project on Sept. 16, 2026, marking another step in Arizona's evaluation of potential long-term water augmentation opportunities. The proposed cross-border water infrastructure project is led by Spanish group Sacyr as a partner within the EPCOR Water Innovation Partners team, in consortium with Arcadis and Plenary Americas US Holdings. The proposed project entails the construction of a seawater desalination facility in Baja California, Mexico, alongside a conveyance pipeline connecting to the Morelos Dam at the Mexico-US border. Under the proposed operational structure, the project would integrate desalinated water into the Colorado River system for distribution within Mexico. In exchange, a portion of Mexico's designated Colorado River water allocation would be redirected to Arizona. Preliminary engineering estimates indicate that the system could supply Arizona with up to 1.7 million m[3]/d between 2034 and 2039. The proposal aims to provide long-term resource diversification for Arizona, where prolonged drought conditions continue to strain traditional water sources. "Arizona must continue exploring a range of potential water supply solutions to meet the needs of future generations. Approving this project appraisal scope allows us to deepen our understanding of this proposal while maintaining our commitment to a thoughtful, transparent, and financially prudent evaluation process," said Jonathan Lines, Board Chair, WIFA. Within the consortium structure, Arcadis will be the lead engineering firm, while Sacyr will oversee construction, operation, and maintenance. Financial development will be managed jointly by Sacyr and Plenary Americas. The proposal is among several projects reviewed under WIFA's Long-Term Water Augmentation Fund, following the Aug. 19, 2026, approval of the South Bay Potable Reuse and California Groundwater Recovery projects. WIFA utilizes a phased evaluation framework where the initial phase involves preliminary studies covering the technical, financial, environmental, cultural, and regulatory viability of the plant and pipeline. WIFA's approval authorizes only this early step to gather data and reduce uncertainty; future funding requests will be considered separately based on study results. Mexico-US Bilateral Water Challenges The push for alternative cross-border water delivery mechanisms comes as the underlying framework governing binational water sharing, the 1944 Water Treaty, faces heightened political and hydrological friction. Under the agreement, Mexico is required to deliver a minimum of 431.7 million m[3] of water per year over five-year cycles, totaling 2,158.6 million m[3] from the Rio Grande basin. However, persistent drought over the past years constrained availability, leaving Mexico at just 29.2% of its required delivery volume near the end of the 2020-2025 cycle, as reported by MBN. This shortfall sparked diplomatic tensions throughout 2025, with US President Donald Trump raising the prospect of tariffs and sanctions over pending deliveries, while Mexican President Claudia Sheinbaum urged diplomatic resolution and highlighted regional drought constraints. Bilateral discussions yielded temporary agreements in late 2025 and a commitment in February 2026 for Mexico to supply at least 432 million m[3] annually to ensure predictable delivery flows. A study by University of Michigan researchers Vianey Rueda and Andrew Gronewold published in the Journal of Water Resources Planning and Management notes that while the Colorado River framework has been dynamically adapted through subsequent negotiations, the treaty's Rio Grande provisions remain structurally rigid. Historical resimulations show that Mexico can only fulfill these fixed obligations without harming local communities during prolonged periods of above-average streamflow. As climate volatility and regional demand strain traditional river basins, flexible binational arrangements, such as the Sacyr-led desalination exchange at the Morelos Dam, offer a pragmatic model to decouple long-term water security from rigid historical treaty allocations.