Construction and Engineering Mergers and Acquisitions at All Time High

//Construction and Engineering Mergers and Acquisitions at All Time High

Construction and Engineering Mergers and Acquisitions at All Time High

Construction and engineering mergers and acquisition reached record highs last year and the sector continues to see incredible activity this year. These trends demonstrate the strength of the construction market, but also means firms need to rethink their hiring strategies.

Merger and Acquisition Trends

Between 2010 and 2017, the annual number of mergers and acquisitions was between 390 and 440. Last year, an astounding 534 deals were made, which is almost a 27% increase over the previous year. This is also the highest number of mergers and acquisitions ever recorded for a single year. Part of the reason for this growth is that more and more baby boomers are retiring. Succession plans often include mergers and acquisitions. Buyer interest is also high right now because companies are looking to diversify and scale. The construction and engineering areas that are seeing the most activity are civil infrastructure, energy, oil and power companies, and building.

Competitive Market

One thing that the increase of mergers and acquisitions indicates is that the market is highly competitive right now. Companies are trying to make themselves more competitive so they’re shedding their less profitable ventures and acquiring new ventures that allow them to improve their overall offerings. Acquisitions of civil infrastructure firms have been especially high, in part, because the pressure to find labor has been particularly challenging. Companies have struggled to find enough skilled professionals to perform the projects they have on their plate. This, in turn, makes it hard to stay competitive and leaves them vulnerable to acquisition.

What This Means for Hiring

With the demand for construction services so high and the shortage of talent, hiring and recruiting strategies are more important than ever. As baby boomers continue to retire, you need to improve your appeal to professionals under 30. Educating younger professionals about the high salaries and great benefits construction and engineering jobs offer helps. It also helps to illustrate a clear path for career advancement. Meanwhile, you want to interview candidates continuously and work closely with a highly successful construction recruiter to better understand the intricacies of the current employment market. These top industry recruiters will give you access to hard-to-attain passive candidates. More importantly, the strongest recruiters will give the best chance that your competitor’s star employee will say yes to your offer, resign with their current company, turn down their counteroffer, and start with you on the day they’re supposed to show up.

While 2019 will likely see less construction and engineering mergers and acquisitions than 2018 since many firms have recently partaken in such activity, it is still expected to be another strong year for mergers and acquisitions. Firms are still trying to diversify their holdings and make themselves more competitive. Eventually, things will level off, but for now the industry will experience a lot of change and uncertainty.

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By | 2019-06-10T16:09:20-04:00 June 13th, 2019|Construction Blog|

About the Author:

The Birmingham Group has been serving the construction industry since 1967. Brian Binke took over the firm in 1995 and since that time, he has personally placed over 1200 construction managers and senior leaders, with company revenues ranging from $10 million dollars to the largest ENR 400 companies in the industry. Brian is an industry innovator, with a specialized skillset in construction. His keen understanding of business, the construction industry, and ability to effectively match and recruit top leaders has led to many accolades. He was ranked the #1 International Billing Owner in the construction industry for his own personal production and has been consistently recognized as one of the Top 10 International Billing Owners out of 800 owners worldwide. This includes owners across every industry. In 2013, Brian was awarded the #1 International Billing Owner within the entire network. For over two decades, Brian has been considered one of the most influential thought leaders in the construction industry. His business and construction knowledge are used as a resource for some of the nation’s most prominent publications. In the past year alone, Brian has been quoted in or authored articles for The Wall Street Journal, CBS News, MoneyWatch, Construction Today, ConstructionDive, United Rentals, Fast Company, Entrepreneur Magazine, American Express, Builder Magazine, and Human Resource Executive, among others. "I believe companies are a lot like sports teams. The team with the best players usually wins. It is my passion to deliver the absolute best talent to my client companies – the market’s top performers, the talent that every company wants to hire but which seldom seems available. To put it simply, I thrive on helping my clients build their Dream Team." - Brian Binke, The Birmingham Group

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