Sources: Warren Equity Partners, Houston; CP staff
A lower middle market private equity fund with infrastructure and maintenance business investments has taken a controlling interest in StormTrap LLC, a Romeoville, Ill., precast producer and licensor of stormwater harvesting, storage and treatment technology. Warren Equity acquired the stake from the Hawken family, which founded StormTrap in 2002. The Hawkens invested alongside the fund and will remain on the board of directors.
Source: American Road & Transportation Builders Association (ARTBA), Washington, D.C.
ARTBA Chief Economist Dr. Alison Premo Black projects a 4.2 percent year-over-year increase for the 2019 transportation infrastructure market, reflecting higher federal, state and local government investment across all modes. Total U.S. transportation construction and related-market activity is projected to eclipse $278 billion in 2019, up from this year’s trending tally of nearly $267 billion.
Sources: American Road & Transportation Builders Association (ARTBA), Washington, D.C.; CP staff
Negative election day response to a proposed roll back of a 2017 California Senate measure increasing state gasoline taxes by 12 cents/gallon elicited a strong defense of user fee-based funding models from ARTBA Acting President & CEO William Toohey, Jr.: “By soundly rejecting Proposition 6 and re-electing 95 percent of the state legislators who voted in 2017 to increase the state gas tax to fund needed transportation improvements, California voters showed the public continues to support a user funded approach to infrastructure investment. That’s a message the Trump administration and new Congress should heed as they consider a bipartisan infrastructure package and permanent revenue solution for Highway Trust Fund programs next year.”
Sources: Freedonia Group, Cleveland; CP staff
Demand for precast concrete in infrastructure contracts is projected to increase 4.4 percent annually, to $2.4 billion by 2022, with growth fueled by the need to repair the nation’s aging network of bridges, highways, roads and railroad tracks; increased adoption of the method over traditional cast-in-place alternatives; and, efforts by the federal government to increase surface transportation investment.
Sources: Associated Builders & Contractors, Washington, D.C.; CP staff
Prices for inputs to construction materials expanded 1.3 percent in April and are 6.4 percent higher than at the same time one year ago, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. The figures are the largest respective month-over-month and year-over-year increases since 2015 and 2011.
Sources: Associated General Contractors of America, Washington, D.C.; CP staff
Responding to President Donald Trump’s March 8 order applying respective 25 percent and 10 percent tariffs to steel and aluminum imports from countries outside the NAFTA region, AGC CEO Stephen Sandherr noted: “These tariffs will cause significant harm to the nation’s construction industry, put tens of thousands of high-paying construction jobs at risk, undermine the President’s proposed infrastructure initiative and potentially dampen demand for new construction.
Sources: Associated Builders & Contractors (ABC), Washington, D.C.; CP staff
ABC and a coalition of construction and business associations continue to urge President Donald Trump to eliminate government-mandated project labor agreements (PLA) on federal and federally assisted projects.
Sources: Bernhard Capital Partners Management, LP, Baton Rouge, La.; CP staff
A Bernhard Capital-led group has acquired construction materials and infrastructure management specialists Engineering and Testing Services Corp., Oakland, Calif.; Moreland Altobelli Associates, Duluth, Ga.; and Pavetex Engineering LLC, Lubbock, Texas, combining them under Atlas Technical Consultants.
Sources: American Road & Transportation Builders Association, Washington, D.C.; CP staff
After a 2.8 percent year-over-year decline in 2017, total domestic transportation construction and related-market outlays are projected to reach $255 billion next year, according to the ARTBA Transportation Construction Market Forecast.
Sources: Dodge Data & Analytics, New York; CP staff
Total U.S. construction starts for 2018 will reach $765 billion, a 3 percent gain from this year’s projected level of $745 billion, according to Dodge Data & Analytics Chief Economist Robert Murray, who cites several positive factors suggesting the construction expansion that began in 2012 “has further room to proceed.”