EFCG Weekly Briefing: December 23, 2022

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Week of December 19, 2022


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The EFCG Team would like to wish everyone a wonderful holiday season and a very happy and healthy New Year! We hope that this time is filled with love, peace, and holiday cheer, and we look forward to seeing you again in 2023!

EFCG Industry Insights

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EFCG recently conducted a survey on Corporate Benefits, which generated some key insights on what benefits AEC firms are providing their employees beyond traditional offerings (ex: medical and retirement). The survey asked everything from Wellness Benefits to Tuition Reimbursements to Hybrid Work Schedules. The results show that the majority of AEC firms are continuing to offer multiple options for work schedules, with most employees choosing a hybrid style (typically 2-3 days a week in the office). While 25% of employees are opting to be fully in the office and 10% of employees are opting to be fully remote, few firms are mandating one specific schedule for their workforce. Furthermore, 82% of firms do not expect to make changes to their work schedule offerings.

To learn more about our Corporate Benefits Survey Report and request a copy, please contact Vishal Menon at vmenon@efcg.com.

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Industry_News_Updates

US DOT Awards $274M for Rural Highways, Other Infrastructure

  • Launching a new program created by the Infrastructure Investment and Jobs Act, the U.S. Dept. of Transportation has picked 12 projects to receive $273.9 million in grants for highway and other surface transportation projects in rural areas around the country.
  • The grant awards, announced on Dec. 21, went to projects in 12 states. Ten of the selected projects are for road, highway or bridge improvements. The largest grant, $69 million, went to the Pennsylvania DOT, to rebuild about six miles of a new four-lane highway that is part of the Central Susquehanna Valley Transportation Project.
  • The grants are part of DOT's Rural Surface Transportation Grant Program, which was established by the IIJA and is funded at $2 billion over five years. Under the infrastructure law, the minimum grant for the new rural program is generally $25 million, though up to 10% of the funds can go for grants smaller than $25 million.
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Energy Crisis is Forcing Climate Targets Off-Track, JPMorgan Says

  • JPMorgan, the first big US bank to pledge to reduce financing for the oil and gas industry, has failed to stay on-track to meet its climate change goals, blaming the energy crisis for forcing clients to ramp up fossil fuel production.
  • The bank pledged last year to decarbonize its oil and gas portfolio: by 15 per cent between 2019 and 2030 for emissions produced when the fuel an energy company sells is burnt; and by 35 per cent for the smaller amount linked to extraction and production processes. Both of these targets were calculated using a controversial “intensity” measure, which allows for a rise in absolute carbon emissions as output grows.
  • Reporting on these targets for the first time on Thursday, the bank said the intensity of its financed emissions linked to fuel sold by its oil and gas clients rose 1 per cent between the end of 2020 and June 2022, while the intensity measure for their operational emissions remained flat instead of falling as planned.
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GSA Allocates $300M to First Batch of Climate Act Projects

  • The U.S. General Services Administration announced it is distributing $301.4 million to its first group of federal building renovation projects under the Climate Act—with the aim of upgrading the facilities to make them more energy efficient and increase their use of low embodied-carbon materials.
  • The agency estimates that the initial group of eight projects would help cut greenhouse gas emissions by 120,000 metric tons and trim energy costs by $35 million over 20 years. GSA says it intends to use low embodied-carbon asphalt, concrete and steel and take other steps to reduce emissions and improve the land port of entry's energy efficiency.
  • In total, the Climate Act—also known as the Inflation Reduction Act—provides GSA $2.15 billion for use of low-carbon materials in construction and renovation projects, plus $975 million “to support emerging and sustainable technologies," and $250 million to convert more GSA buildings into high-performance green buildings. The measure was signed into law on Aug. 16.
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Highlighted_MA_Transactions

December 21, 2022

TYLin, a California-based full-service infrastructure consulting firm, announced its acquisition of Greeley and Hansen, an Illinois-based leading water infrastructure engineering firm known for creating some of the world’s largest and first-of-its-kind water and wastewater treatment facilities in the U.S. and Latin America. “The acquisition of Greeley and Hansen advances our strategy to leverage our current water sector capabilities to help transform TYLin into a leader in the water market in the Americas,” said TYLin Group President and Chief Executive Officer Matthew G. Cummings, P.E.

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December 22, 2022

Qualus Corporation (Qualus), an Ohio-based firm specializing in power engineering, project management, and technical field services in support of the modernization of the electric power infrastructure and the broader energy transition, announced that it has acquired Tri Sage Consulting (Tri Sage), a Nevada-based provider of power engineering and project management services for renewable and power system development throughout the western U.S. Tri Sage services complement Qualus’ existing planning and design services for substations and transmission lines and deepens the firm’s resources in renewables and high voltage grid interconnection projects. The combination of Tri Sage with Qualus will also expand Qualus’ client base and western US footprint and geographic reach.

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December 22 , 2022

NV5 Global Inc. (NV5), a Florida-based provider of technology, conformity assessment, and consulting solutions for public and private sector clients supporting sustainable infrastructure, utility, and building assets and systems, announced it has entered into a definitive purchase agreement to acquire the Visual Information Solutions commercial geospatial technology and software business (VIS) of L3Harris Technologies, Inc. (L3Harris), a Florida-based global aerospace and defense technology firm. The acquisition expands NV5’s subscription-based software products for the analysis and management of geospatial data. The transaction is estimated to benefit L3Harris up to $100 million and is expected to close mid-2023, subject to required regulatory approvals and other customary closing conditions. The divestiture is consistent with the company’s broader strategy to continue portfolio optimization and to align long-term innovation investments for national security priorities and whole-of-government, multi-domain solutions.

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    Community_Impact
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    PT Freeport Indonesia (PTFI) has appointed Black & Veatch to design and manage the delivery of a seawater desalination plant for its Manyar Smelter in East Java, Indonesia, as part of its sustainable development commitments. Black & Veatch, in collaboration with its joint operating agreement (JOA) partner PT Wika, will perform the engineering, procurement, construction and commissioning responsibilities for the seawater desalination plant. "The mining industry plays a critical role in the global shift to a decarbonized and sustainable future. Accessing water from the ocean saves freshwater resources for the local community and ecosystems and ensures a more sustainable, resilient and reliable water future. It also improves efficiencies and reduces operational risks and downtime that affect business profitability," said Narsingh Chaudhary, Executive Vice President & Managing Director, Asia Pacific, Black & Veatch.

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