<img src="https://d5nxst8fruw4z.cloudfront.net/atrk.gif?account=n/CSo1IWx810Y8" style="display:none" height="1" width="1" alt="">

Subscribe to Email Updates

Latest Blog Post

Scaffolding & Industrial Services

Industrial and Construction Services Newsletter - Q3 2021

TKO Miller Market Analysis 

Market Landscape

  • Labor shortages continue to be the prevailing pain point facing not just the construction/industrial services markets, but all industries; personnel shortages are becoming universal across unskilled labor, skilled trade, and professional positions
  • Most construction industry experts expect labor shortages to be a lingering issue that will impact the industry for the foreseeable future
  • Supply chain issues and shortages of materials and equipment are nearly as problematic as labor issues; supply chain constraints and significant price increases, which early in the year led to record prices for building materials, have expanded to include finished goods such as heavy equipment, tools, and safety products
  • Net inputs to the construction industry have increased over 20% YoY since August of 2020, according to the producer price index, with prices for key input materials such as lumber and steel driving much of the increase
  • Congress is still deliberating but is expected to vote by the end of October, on the INVEST in America Act, a bill that would extend current infrastructure budgets as well as establish new spending programs for transportation, environmental, and natural resource infrastructure

M&A Conditions

  • M&A conditions continue to be strong through the latter part of the year, with activity, as well as valuations, in the industrial and construction services sector remaining high
  • This, combined with looming corporate and capital gains tax reform from the Biden administration, created a strong incentive for owners and operators in the industry to launch transaction processes prior to year-end; however, now that the expected tax increase is lower, this may no longer be as large a factor as it once was
  • These factors have created something of a log jam of companies wishing to transact by year-end, and buyers and their advisors are struggling to find the capacity to pursue new transactions; this dynamic may create slight (likely temporary) downward pressure on deal volume
  • TKO Miller expects to see record overall transaction activity both in terms of volume and value in 2021, but 1Q22 may regress to the mean as fewer transaction processes are launched in the latter half of 2021 in order to accommodate the saturated M&A market
Timothy Oleszczuk
By Timothy Oleszczuk
on Oct 18, 2021 2:06:38 PM
   
Industrial and Construction Services Newsletter - Q3 2021

TKO Miller Market Analysis 

Market Landscape

  • Labor shortages continue to be the prevailing pain point facing not just...
Timothy Oleszczuk
By Timothy Oleszczuk
on Oct 18, 2021 2:06:38 PM
Industrial and Construction Services Newsletter - Q2 2021

TKO Miller Market Analysis 

  • As the country is moving back to pre-pandemic economic trends, states are returning to...
Timothy Oleszczuk
By Timothy Oleszczuk
on Jul 27, 2021 3:16:11 PM
Industrial and Construction Services Newsletter - Q1 2021

TKO Miller Market Analysis 

  • Construction activity continues to increase, and many contractors are expected to hire...
Timothy Oleszczuk
By Timothy Oleszczuk
on Apr 22, 2021 1:29:50 PM
Industrial and Construction Services Newsletter - Q4 2020

TKO Miller Market Analysis 

  • As 2021 gets underway, operators and investors alike are looking for the new year to provide a...
Timothy Oleszczuk
By Timothy Oleszczuk
on Jan 11, 2021 2:58:05 PM
Industrial and Construction Services Newsletter - Q3 2020

TKO Miller Market Analysis 

Industrial Services: activity in the industrial services and construction markets returned to...

Timothy Oleszczuk
By Timothy Oleszczuk
on Oct 16, 2020 11:06:13 AM
Industrial and Construction Services Newsletter - Q2 2020

TKO Miller Market Analysis 

  • The industrial and construction services landscape continues to evolve as the world monitors...
Timothy Oleszczuk
By Timothy Oleszczuk
on Jul 17, 2020 2:00:45 PM
Industrial and Construction Services Newsletter - Q1 2020

TKO Miller Market Analysis 

  • The near-term economic outlook for the industrial services and construction industry continues...
Timothy Oleszczuk
By Timothy Oleszczuk
on Apr 9, 2020 11:37:36 AM
Q4 2019 Industrial Quarterly Newsletter

TKO Miller Market Analysis 

  • A strong U.S. economy is expected to contribute to demand for the construction and maintenance...
Timothy Oleszczuk
By Timothy Oleszczuk
on Jan 28, 2020 7:15:00 AM
Q3 2019 Industrial Quarterly Newsletter

TKO Miller Market Analysis 

  • TKO Miller’s proprietary Industrial and Construction Services Index (see below) has continued...
Timothy Oleszczuk
By Timothy Oleszczuk
on Oct 11, 2019 7:05:00 AM
Q2 2019 Industrial Quarterly Newsletter

TKO Miller Market Analysis 

  • Despite the persisting uncertainty surrounding industrial and construction markets, TKO Miller...
Timothy Oleszczuk
By Timothy Oleszczuk
on Jul 2, 2019 7:05:00 AM

Leave a comment

Written by
Written by Author