EFCG Weekly Briefing: March 3, 2023

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Week of February 27, 2023


Industry_News_Updates

US DOT Awards $185M to Projects to Re-Link Divided Neighborhoods

  • The U.S. Department of Transportation has awarded $185 million in grants to 45 projects that aim to undo the harm done to neighborhoods years ago by highways and other types of infrastructure that cut residents off from jobs, schools, food stores, and healthcare facilities.
  • The DOT awards, formally announced on Feb. 28, represent the first installment of the $1 billion Reconnecting Communities program launched in the 2021 Infrastructure Investment and Jobs Act. Of the 45 grants, six, totaling $138.2 million, are for capital construction; the rest are for planning projects.
  • The six new capital construction grants include: $55.6 million to the New York State DOT, to help construct a new highway cap and tunnel for Buffalo’s Kensington Expressway; and the City of Long Beach, Calif., which was awarded $30 million to redesign West Shoreline Drive, converting a freeway into a lower-speed roadway.
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Report Finds EU Needs to Build, Train and Renovate to Meet Climate Targets

  • The EU lacks 1.6 million trained professionals to meet its climate targets, according to a report from management consultancy McKinsey & Company. The study also found that supply chain issues were hindering EU member states from carrying out necessary construction work, for example, with China supplying 98% of some of the EU’s solar components.
  • The report, "Refurbishing Europe," called for fossil-based industries to retrain employees, for governments to lower the cost of green technologies, and for an increase in private investment to boost the recycling and decarbonization of materials.
  • Gustav Bolin, McKinsey’s Associate Partner, commented: “Creating new European supply chains in home installations would not only help meet EU climate targets but create new business opportunities from production and assembly to distribution and installation. Our analysis indicates there is a potential €300bn addressable market for distribution and installation services, and green financing could be worth over €300bn a year by 2030.”
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27% Drop in Construction Starts Is Not Sign of Industry Downturn, Dodge Economist Says

  • Construction starts fell 27% in January compared to December, but the drop is not necessarily a sign of an ongoing slowdown, according to Dodge Construction Network's chief economist, Richard Branch. January construction starts totaled a seasonally adjusted rate of $865.6 billion.
  • Dodge data also show that nonresidential building starts fell 38% from December, but compared to January 2022, nonresidential starts were only down 2%. Nonbuilding starts, which dropped 16% from December, were up 10% compared to a year earlier. Branch says the starts of "mega-projects" valued at $500 million or more over the last few months obscure the trend in construction activity.
  • Some economists have warned a recession could be possible as the Federal Reserve continues to raise interest rates. Branch says some sectors in construction will face stress this year, but overall "current fundamentals point to an industry that is fairly well positioned to weather the storm."
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Highlighted_MA_Transactions

February 24, 2023

Manhard Consulting, Ltd. (Manhard Consulting), an Illinois-based civil engineering and surveying firm, has acquired Abram Dashner RPLS LLC, a Texas-based surveying firm. Both offices will work closely together to provide clients in the greater Austin area the full range of engineering and surveying services. “Bringing Abe and his team on was a great fit given our strategic growth around Austin and across central Texas,” said Don Manhard, Jr., President and CEO. “We’ve worked with him on a variety of projects and share the same focus on development work and customer service. With Austin’s growing reputation as a technology hub, combined with our clients in the region and statewide needing more support, we are happy to continue our focus on and investment in the area.”

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February 27, 2023

Passero Associates, a New York-based provider of planning, engineering, architectural design, structural, surveying, sustainability, program management, design-build, and construction observation services, has acquired SRF Associates, D.P.C (SRF Associates), a New York-based transportation planning, engineering, and design firm serving public and private sectors in New York, Pennsylvania, and North Carolina. With this acquisition, Passero Associates will be able to leverage SRF Associates' expertise and experience to enhance its transportation planning and traffic engineering services and provide their clients with a wider range of services and a deeper pool of talent.

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March 1, 2023

Wood, Patel, & Associates, Inc. (WOODPATEL), an Arizona-based civil and transportation engineering firm, has acquired Geomatics Consulting Group, Inc. (GCG), an Arizona-based full-service land surveying company providing advanced surveying and mapping services to engineers, architects, government agencies, contractors and private individuals. “The joining of Geomatics Consulting Group and WOODPATEL further advances our commitment to leading innovative solutions through technology for our clients,” said Michael Young, President of WOODPATEL.

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March 1, 2023

Salas O’Brien, a California-based facility planning, design, construction management, and commissioning firm, has acquired Epsten Group, a Georgia-based multidisciplinary firm providing sustainable design, consulting, and commissioning services. Epsten Group’s capabilities and portfolio complement Salas O’Brien’s expertise in sustainability consulting, building commissioning, architecture, and interior design. “By merging with Epsten Group, we are confirming and strengthening our shared commitment to sustainable solutions,” said Darin Anderson, Salas O’Brien chairman and CEO. “We are excited to share this team’s visionary approach with our clients, because sustainability in the built environment has a lasting impact for generations to come.”

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March 2, 2023

NV5 Global, Inc. (NV5), a provider of technology, conformity assessment, and consulting solutions, has acquired Gaudet Associates, Inc. (Gaudet Associates), a Florida-based provider of owner representation, construction management, and environmental consulting services. Gaudet Associates has worked on behalf of owners to oversee new facility development and renovations in Florida for 35 years and strengthens NV5’s existing owner representation capabilities. “With the fastest growing population in the nation and recent growth in tourism, Florida building owners are turning to owner representatives for construction and renovation oversight to meet the needs of Florida’s residents and visitors,” said Dickerson Wright, PE, Chairman and CEO of NV5. “Gaudet Associates has been serving the Florida market for over three decades, and we look forward to the contributions that it will bring to our existing owner representation group in the state.”

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    March 2, 2023

    The HFW Companies (HFW), a Missouri-based professional services firm investing in architecture and engineering firms that serve metropolitan and infrastructure markets, has acquired GastingerWalker&, a Missouri-based architectural firm whose services include architecture, interior design, construction management, space planning, and historic rehabilitation. Michael Hein, AIA, PMP, chief executive officer of HFW, describes the new growth partner as an ideal strategic fit for HFW in its continuing quest to develop its “House of Brands” concept. “We’re excited because GastingerWalker& brings to this partnership a solid brand legacy, strong leadership, talented people with unique design expertise, and a long list of regional and national clients that already give the firm a national footprint,” Hein said. “Perhaps most impressive is that more than 85 percent of the firm’s business comes from countless new projects with repeat clients. We’re looking forward to the profitable synergies they bring into our growing network of HFW Partner firms.”

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    Community_Impact
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    For the first time since the onset of the COVID-19 pandemic, Stanley Consultants hosted the popular MATHCOUNTS contest, a 26-year tradition that gathered 59 students from eight regional schools in Ankeny, Iowa, including Grant Elementary School, Jefferson Elementary School, Madison Elementary School, McKinley Elementary School, Mulberry Elementary School, Mediapolis Middle School, Susan Clark Junior High School, and West Liberty Middle School. Filled with questions designed to test the skills of even advanced math students, students were encouraged to step out of their comfort zone at school and push themselves to succeed in the contest. A four-round competition, students started with a quick individual round (aptly named the "sprint round"), followed by the target round, where they complete longer problems individually, as well as a third team-based round and a final individual round.

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