Sunbelt Rentals, an equipment rental provider for commercial, industrial, residential, and municipal industries, has acquired the assets of R&R Rentals, a three-location equipment rental company located in the greater Seattle area. R&R Rentals began its journey in the rental industry by acquiring Bellevue Rentals in 2002. The company expanded with the acquisition of Crystal Rentals in North Bend, WA, in 2003, and opened its Renton, WA, location in 2004. The acquisition of R&R Rentals expands Sunbelt Rentals’ presence in the Seattle area and reinforces its position in the equipment rental market.

CES Power LLC, a provider of sustainable mobile power generation, distribution, and temperature control solutions for large events, has acquired Immedia Event Productions, a key player in the northeastern events sector known for its robust power and HVAC solutions. This strategic alignment will provide a new hub in New England, strengthening CES Power’s capabilities in Boston and solidifying its commitment to strengthening services in the Northeast. CES Power is backed by industrial-focused private equity firm Allied Industrial Partners. Immedia marks the Company’s sixth bolt-on acquisition in the Northeast U.S. market.

Bigge Crane and Rigging Co., one of the nation’s largest crane sales and rental companies, has acquired a majority stake in Empire Crane Co. Empire Crane Co. is a full-service crane sales and repair company headquartered in upstate New York. The alliance between Empire and Bigge’s “Perfect Fleet” of more than 1,800 cranes and 21 maintenance facilities is now more readily available to customers on the East Coast. This new partnership is an essential milestone for both companies, which will benefit crane buyers worldwide with a true coast-to-coast offering.

Thompson Pump, a provider of multiple models of dewatering pumps with a focus on rotary and piston pumps, as well as vacuum-assisted models, for wellpoint and sock underdrain, has acquired American Sock & Dewatering, the premier socking company in Northern Florida. With the addition of American Sock, Thompson Pump is able to improve the customer experience by now providing the full range of construction dewatering services. This allows Thompson Pump to meet the unique North Florida challenges such as low-lying terrain, coastal areas, and heavy rain and flooding.

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Industrial and Construction Services News

Nonresidential Construction Spending Decreasing for the First Time in Nearly a Year

National nonresidential construction spending decreased 0.2% in May, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.06 trillion. Spending declined on a monthly basis in nine of the 16 nonresidential subcategories. Private nonresidential spending fell 0.3%, while public nonresidential construction spending increased 0.1% in May. Contractors remain relatively upbeat, according to ABC’s Construction Confidence Index, and ongoing strength in manufacturing and publicly financed segments justifies that confidence. [LINK]

Construction Expert Predicts Flat Material Prices for the Second Half of the Year

Labor shortages, a manufacturing boom, and infrastructure work are keeping the industry from returning to pre-pandemic price levels. Nonresidential construction activity is maintaining price pressures on concrete, steel, and other key materials. Overall, current projections are that prices will remain flat for the second half of the year. Current trends show us returning to the prices that were seen in December and January and remaining flat from there through 2023. Of course, prices on certain commodities could go up. Products that require a lot of energy to produce may also become more expensive. In addition, future risks in the oil market, with OPEC cutting oil production will raise energy costs specifically, which means costlier steel and concrete. Turkey will raise demand for oil and other materials as they recover and look to rebuild after the recent devastating earthquakes. [LINK]

Public Projects Surge While Private Project Starts Falter

Total construction starts continued their 2023 roller coaster ride, jumping 8% in May to a seasonally adjusted annual rate of $1.11 trillion due to strong gains in manufacturing and infrastructure, according to Dodge Construction Network. After an unexpected 68% drop in manufacturing project kickoffs in April dragged down all starts, manufacturing starts more than doubled in May. Growth in the manufacturing and infrastructure sectors, however, was largely offset by contractions in commercial and residential construction — think office, retail and housing — marking an overall bifurcation of building activity. While construction in manufacturing and infrastructure report strong activity, the private sectors of the building market are posting worrying signs, as they struggle under the weight of higher interest rates, tightening lending standards and declining demand. [LINK]

Increased Optimism Drives the American Rental Association’s Quarterly Forecast

The American Rental Association indicates in its updated forecast that the United States equipment rental industry’s growth will soften but remain positive. Last quarter, the year-over-year growth was expected to be 4.7 percent in 2023 and 2.1 percent in 2024. The most current projections indicate 7.6 percent growth in 2023 totaling $60.4 billion in construction and general tool rental revenue. As for 2024, a 3.1 percent revenue increase is now expected. However, investment in the construction industry and construction employment approaches a record high. Also evident is the adaptability of rental companies. [LINK]