EFCG Weekly Briefing: November 11, 2022

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Week of November 7, 2022


EFCG Industry Insights

At EFCG, we are relentlessly in pursuit of going beyond the data to deliver insights to the AEC industry and provide accurate and deep intuitive understanding for our clients. For our 2022 CEO Conference, we pulled together ENR 500 data going back to 2011 (over 50,000 data points) in order to visualize the historical impacts of macroeconomic conditions, industry trends, mergers and acquisitions, and much more.

As part of our analysis, we visualized the changes in the Top 25 firms over the last 10+ years. Some insights we found:

  • Each year, about 10% of the list changes, meaning there are about 50 new entrants to the list. However, of the Top 100 firms, there are rarely more than a handful that are new entrants.
  • The percentage breakdown by revenue category is generally consistent year-to-year, but petroleum as a category has consistently declined in recent years: it was 26% of reported revenues in 2013 and just 12% in 2022. This has been accompanied by increases in general building and transportation (which have been the two largest categories each of the last 5 years).
  • Larger firms generally have a much larger portion of their revenues from international work – the Top 25 firms on the list, for example, typically report twice as much international revenue (as a %) than the overall list. However, firms of all sizes have been reporting declining percentages of international revenue in recent years.

Meanwhile, at EFCG, we have over 25 years of our own industry surveys, representing millions of additional data points. We are always excited to dive into our data and look for new patterns and insights to share with our clients.

For questions, contact Jackson Golden at JGolden@efcg.com

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Industry_News_Updates

US Dept. of Energy Deploys $1.5B to Upgrade National Labs

  • The US Department of Energy (DOE) announced its plan on November 4 to parcel out $1.5 billion to upgrade the network of national laboratories it manages, including funds for cutting-edge technological tools and some facilities that house them.
  • DOE said some new funds from the just enacted Inflation Reduction Act would go toward major equipment projects in areas such as high-energy physics, fusion energy, nuclear physics, and science laboratories, while other portions will underwrite construction and lab facility upgrades.
  • The administration intends that the labs will play a major part in clean-energy and climate-related work and that the new funding will provide “a long overdue boost” for DOE’s national labs, with some funds to be used to “build and upgrade scientific facilities, modernize their infrastructure and tackle deferred maintenance projects.”
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Top Office Developers Hit the Pause Button on New Projects

  • U.S. real-estate developers are delaying major office projects already underway or in the planning stages, discouraged by high vacancy rates and reduced workspace demand resulting from remote work.
  • Property developers view periods of economic uncertainty and weak office demand as good times to launch new projects, but soaring interest rates and the slow pace at which workers are returning to offices have even some risk-taking developers wary about the future.
  • Developers forging ahead say demand remains strong for the highest-quality space with great locations and amenities such as restaurants, good views, fitness centers, and daycare.
  • Businesses adopting new workplace strategies feel it is worth paying higher rents for this space partly because they are leasing less and partly to encourage workers to return to the office for more days.
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Highlighted_MA_Transactions

November 6, 2022

DCCM, LLC (DCCM), a Texas-based design, consulting, and program & construction management services firm, has acquired Urban Engineering, LLC (Urban Engineering) and Urban Civil, LLC (Urban Civil), both of which are Texas-based providers of public works, land and site development, and surveying work for public and private clientele along the Texas Gulf Coast and other regions. The combined organization will continue to operate under the Urban Engineering name and allow DCCM to expand its service capabilities, particularly within Texas and the surrounding region. 

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November 7, 2022

Bowman Consulting Group Ltd. (Bowman), a Virginia-based engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment, has acquired SEI Engineering, LLC (SEIE), a Colorado-based provider of technical services to developers and owners of utility and commercial scale solar energy facilities. The acquisition of SEIE will help expand Bowman's solar engineering services with the addition of SEIE's team of photovoltaic (PV) and battery storage system designers, engineers, and technicians.

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November 8, 2022

Long Point Capital (Long Point), a New York-based private investment firm, has made a significant equity investment in Allnorth Consultants Limited (Allnorth), a Canada-based multi-disciplinary engineering firm providing project delivery and construction services to a diverse group of private and public clients. Long Point's investment in Allnorth will accelerate Allnorth's growth within North America. Norm Scherr, Principal of Long Point Capital, noted, "We are excited to partner with the Allnorth team to enable them to continue to enhance the Company's service offering both organically and through acquisitions."

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    Other_Noteable_MA_Transactions

    November 1, 2022

    Bowman Consulting Group Ltd. (Bowman), a Virginia-based engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment, has acquired substantially all the assets of Spatial Acuity, LLC (Spatial Acuity), a Texas-based 3D modeling and reality capture firm focusing on reality capture technology including high-definition scanning and 3D building information modeling (BIM) creating a geospatial ecosystem and bringing digital twins to reality.

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      Community_Impact
      olsson_logo

      The Olsson Foundation, Olsson Associates' private nonprofit arm, recently made donations to 11 nonprofit groups that help youth experience the outdoors; science, technology, engineering, and math (STEM) programming; educational opportunities, and more. The funds donated by the foundation in 2022 will serve communities in Missouri, Kansas, Nebraska, Oklahoma, Colorado, Arizona, and Texas. The foundation's mission is to support the environment, education, and the communities where Olsson delivers services while supporting employees who are actively engaged in their communities.

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