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Weekly Briefing: January 30, 2026


EFCG Weekly Update

Week of January 26, 2026



EFCG Weekly Briefing


Construction Industry Growth Uncertain Despite Employment Stability


  • Construction employment in December increased year-over-year in 34 U.S. states and Washington, D.C. but was unchanged in Maine and declined in 15 states; Texas added the most jobs while California saw the largest decline.

  • On a month-to-month basis (November to December), construction jobs rose in 20 states and fell in 26 states, with several states showing no change, indicating a stalling trend in employment growth.

  • According to the Associated General Contractors of America’s (AGC) chief economist, the stagnation in hiring reflects broader challenges in the AEC sector, including project postponements or cancellations due to insufficient funding, high financing costs, and policy uncertainty, which are inhibiting contractors’ ability to hire.

  • AGC CEO Jeffrey Shoaf emphasized that declining highway project funding and uncertainty around future surface transportation legislation are contributing to weaker employment and may affect contractor hiring and retention decisions.






Trump Executive Order Aims to Speed Up Los Angeles Wildfire Home Rebuilding


  • President Trump signed an executive order intended to “cut through bureaucratic red tape” to speed up the reconstruction of homes destroyed by the January 2025 Los Angeles area wildfires, aiming to streamline rebuilding processes that directly affect firms involved in reconstruction and permitting.

  • The order directs the Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA) to develop regulations that could preempt state and local permitting rules and allow builders to self-certify compliance with health, safety, and building standards, which may change how firms approach permitting and code compliance in future disaster reconstruction.

  • As of early January 2026, fewer than a dozen homes had been rebuilt and about 900 were under construction in areas impacted by the Palisades and Eaton fires, indicating a significant ongoing workload and demand on firms for design, engineering, construction management, and reconstruction activities.

  • Local leaders and fire survivors highlighted that financial constraints are further delaying the process, signaling broader economic and resource challenges for wildfire recovery efforts.






EFCG M&A Transactions


January 22, 2026


KCI, a Maryland-based engineering, planning, and construction firm, has acquired Daft-McCune-Walker (DMW), a Maryland-based multidisciplinary civil engineering, environmental science, land planning, landscape architecture, and surveying firm. The acquisition enhances KCI’s service offerings while enabling DMW to leverage KCI’s resources to support continued growth, expanded client service, and additional opportunities for employees. Nicholas Barrick, Service Line Leader at KCI, commented, “DMW brings many years of expertise and a proven track record of delivering innovative and sustainable solutions. Their depth of knowledge in civil site design, land planning, and environmental compliance strengthens our integrated capabilities and expands our ability to serve both public and private clients throughout Maryland and beyond.”






January 22, 2026  


Tetra Tech, a California-based consulting and engineering firm serving the water, environment, and sustainable infrastructure sectors, has acquired Halvik Corp (Halvik), a Virginia-based advisory consulting firm focused on advanced data analytics, systems modernization, and cybersecurity for U.S. defense and civilian agencies. This acquisition supports Tetra Tech’s continued expansion across the federal market and provides Halvik with a platform for growth. Roger Argus, President and CEO-designate of Tetra Tech, said, “The addition of Halvik expands our high-end analytics and digital solutions across U.S. federal agencies. Halvik broadens our relationships with the U.S. Army, Navy, Air Force, and Department of Transportation. Together, we will strengthen resiliency and operational effectiveness using advanced data analytics, artificial intelligence, machine learning, and cybersecurity solutions.”






January 26, 2026 


Leidos, a Virginia-based global design firm, has agreed to acquire ENTRUST Solutions Group (ENTRUST), an Illinois-based power and energy infrastructure firm that was previously owned by Kohlberg & Company, a New York-based middle market private equity firm. This strategic move strengthens Leidos’ energy infrastructure portfolio, diversifies its utility client base across gas and electric markets, and expands its capabilities from transmission and distribution into generation. “ENTRUST’s engineering capabilities and customer base perfectly complement ours, and it has a consistent track record of growth and strong profitability,” stated Tom Bell, CEO of Leidos. “This deal is a bold step forward in support of Leidos’ growth strategy and a national priority to expand America’s energy infrastructure, while improving reliability and resilience against aging systems and extreme weather events.”






January 28, 2026 


Stratus Team (Stratus), a Pennsylvania-based integrated engineering, architecture, and consulting firm, backed by Brightstar Capital Partners, has acquired Stewart, a North Carolina-based engineering, planning, landscape architecture, surveying, and design services firm. The acquisition supports Stratus’ growth strategy by adding complementary services and expanding its multidisciplinary platform through the integration of an experienced regional firm. “Stewart’s reputation for technical excellence, client service, and community impact aligns perfectly with Stratus’ vision,” commented Brandon Enochs, CEO of Stratus. “By joining forces, we are expanding our multidisciplinary engineering and design capabilities, with added strength in structural engineering and landscape architecture, while strengthening our presence in one of the country’s fastest-growing regions.”






January 29, 2026 


MML Capital, a UK-based private equity firm, has completed a strategic minority investment in RTM Engineering Consultants (RTM), an Illinois-based mechanical, electrical, and plumbing (MEP), civil, and structural engineering consulting firm. This strategic move better positions RTM to build on its 45-year legacy through continued organic and inorganic growth while maintaining client relationships and company culture. Tony Mirchandani, CEO of RTM, said, “We are pleased to welcome MML Capital as a strategic minority partner. This partnership reflects confidence in RTM’s long-term vision and enhances our ability to invest in our people, expand our capabilities, and continue delivering exceptional value to our clients.”






EFCG Community Impact


Dillon Consulting Logo

Dillon Consulting’s Vancouver office highlighted its participation in the firm’s Values in Action: 1000 Days Towards Better Housing initiative, which aims to collectively donate 1,000 days of employee time to help address the housing crisis and support the treatment of homelessness and its root causes across Canada. As part of the initiative, the team supported RainCity Housing’s Budzey Program, which offers supportive housing for women and women-led families in Vancouver. Over the recent holiday season, the team organized and purchased personalized gifts for 60 children living in the program, held a gift-wrapping event, and donated additional stocking stuffers and supplies to help ensure a positive holiday experience for the families.







The EFCG Weekly Briefing summarizes the week’s key news in the AEC industry, including M&A updates, and micro- and macro-trends, aggregated from industry-focused and global news sources. 


To send any additional press releases or news from your firm that you would like us to share please email Clay Han at chan@efcg.com.



 
 
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