Engineering growth

Fourth-quarter 2015 engineering & construction industry mergers and acquisitions analysis

In this post we will do a short overview of the latest results of the M&A and present our expectations for the future developments in the construction industry.

• The construction companies were mostly focused on investing in their principal competencies and increasing the quality of their work.
• In the last quarter of the previous year, the companies offering building material were focused on improving their position on the market and making better moves when it comes to their business opportunities.
• Many non-core businesses were discarded simply because companies were focused more on the core business operations due to the pressure they had from the government or as a result of the need for a different strategy.
• The year started with very bad weather conditions, which was not something the construction industry was hoping for. However, despite the harsh conditions, the future was looking bright. The construction results in 2015 were expected to increase up to 6%.
• The construction industry for the non-residential sectors saw a great increase. The need for industrial, office as well as commercial facilities has dramatically increased which had a positive effect on the overall industry.

We would like to stay optimistic and believe that the construction industry will be able to recover fast from the impact of the economic crisis and that there will be an increase in the activity of this sector. Since the unemployment rate is going down and the construction industry is slowly regaining its strength there is still hope. The industry might be able to allocate the extra funds to CapEx and inorganic growth and return as a victor.

We hope that this short analysis has helped you get an insight of the latest developments in the construction industry and get a better idea of the future ahead. If you have any questions or you are willing to discuss our findings into further details please do not hesitate to contact us. We would be happy to give you more information on our conclusions and forecasts.