Weekly Briefing: May 16, 2025
- Socially Adept Solutions
- 5 days ago
- 5 min read
EFCG just held its Annual HR Leadership Conference from May 14-16, at the JW Marriott Hotel in Atlanta, GA. We welcomed more than 120 HR leaders from across the AEC industry, with 51 first-time participants and 96 firms represented.
The conference kicked off with EFCG Managing Partner, Rebecca Zofnass, delivering EFCG's signature AEC Industry Overview which included critical data as it relates to HR functions. Attendees also heard from firm leaders during panel sessions focused on topics such as Aligning HR Strategies with Business Goals, Leveraging Tools and Systems for Operational Excellence, Addressing and Planning for the Talent Shortage, Analyzing and Optimizing Executive Leadership Structures, and more.
EFCG would like to thank everyone who attended this year's HR Leadership Conference and our sponsorship partners – TRANSEARCH and CareerSMITH – for their continued partnership!
Construction Backlog Hits 20-Month High
Construction backlog reached 8.7 months in April, an increase of 0.2 months from March marking its highest point in 20 months, according to the Construction Backlog Indicator survey conducted by Associated Builders and Contractors.
The overall increase in the construction backlog was primarily driven by projects over $100M, which saw a 2.2% rise over the past 12 months. Additionally, projects in the Northeast experienced a significant increase of 1.8%.
Despite the overall increase, a breakdown by industry reveals that Infrastructure and Heavy Industrial projects experienced the largest decline this past month, with drops of -2.5% and -1.5% respectively.
Additional trends noted include that 22% of contractors saw project delays or cancellations in April, up 4% from March, and 19% of survey respondents expect sales to decline over the next 6 months, up 6% from the beginning of the year
Multiple Energy Groups Scrap Projects in Texas
About half of the projects in a $5B Texas program to fund gas power plant construction have been abandoned due to rising costs, supply chain delays, and uncertain revenue after the developers exit.
The Texas Energy Fund was established to strengthen the grid after the 2021 blackout, but developers stepping away from projects hinder its impact. Ercot, Texas’ grid operator, also has concerns around the grid, highlighting the importance of increasing capacity and estimating that power demand could exceed supply starting next summer.
Experts in Texas highlight the difficulties around building and operating power plants, due to tripled construction costs, future increases because of tariffs, five-year wait times for gas turbines, and past hesitancy from turbine manufacturers to invest due to market instability.
Overall energy project uncertainty in Texas is impeding the state’s ability to boost its energy production. This challenge highlights potential obstacles to the Trump administration’s plan to increase fossil fuel production.
May 12, 2025
IMEG Corp (IMEG), an Illinois-based full-service engineering design firm, has been joined by Lynch Mykins, a North Carolina-based structural engineering and special inspections firm. This addition enhances IMEG’s technical expertise and broadens its footprint throughout North Carolina and the greater Southeast. “We are thrilled to welcome the Lynch Mykins team to IMEG,” said Paul VanDuyne, IMEG President and CEO. “Their structural expertise and reputation for quality work align perfectly with our values and strategic vision."
May 12, 2025
Alliance Technical Group (Alliance), an Alabama-based environmental testing and compliance services firm, backed by Morgan Stanley Capital Partners (MSCP), is joined by Slipstream Environmental Services (Slipstream), a Wyoming-based firm specializing in combustion source emissions testing and regulatory compliance services for the oil and gas industry. The partnership will provide support for Alliance’s upstream/midstream operators navigating complex federal and state regulations. “This is a huge step for Alliance, reinforcing our commitment to serve the oil and gas industry, particularly for engines and combustion sources,” said Tyler Frey, Director of Oil & Gas at Alliance. “Slipstream’s deep technical expertise, experienced team, and trusted client relationships make them an exceptional fit with Alliance’s mission and values.”
May 13, 2025
Woolpert, an Ohio-based architecture, engineering, geospatial, and strategic consulting firm, has acquired Bluesky International (Bluesky), a UK-based geospatial solutions firm that specializes in aerial imaging, LiDAR, 3D modeling, vegetation, and renewables mapping. Bluesky’s aircraft and sensors, innovative data products, and suite of capabilities will enhance Woolpert’s service offerings and enable both firms to provide integrated solutions to their clients. Neil Churman, President and CEO of Woolpert, commented, “With the addition of Bluesky to Woolpert’s trans-Atlantic team, together, we’ll be able to offer clients across Europe and North America a truly comprehensive set of geospatial services and products. We are beyond thrilled to embark upon the new opportunities that Bluesky and Woolpert will bring to each other and to our clients.”
May 13, 2025
True Environmental (True), a New York-based platform that collaborates with founder and employee-owned environmental consulting and engineering firms to provide solutions that drive growth and support ownership transitions, backed by Halle Capital, has acquired Padre Associates (Padre), a California-based natural resources and geoenvironmental services firm. This strategic partnership supports True in its goal to build an environmental consulting and engineering platform that provides high-quality solutions, while also broadening Padre’s service offerings and capabilities. “Padre has built an exceptional organization known for its technical expertise, collaborative culture, and dedication to delivering high-quality solutions to both public and private sector clients,” stated Jim Stamatis, CEO of True. “Together, we will expand our ability to address complex environmental and engineering challenges with innovative, client-focused solutions.”
May 14, 2025
ISG, a Minnesota-based architecture, engineering, environmental, and planning firm, has acquired JDAVIS, a North Carolina-based multi-disciplinary design firm specializing in planning, landscape architecture, interior design, architecture, and procurement management services. The acquisition will complement and enhance ISG’s residential and mixed-use portfolio and support ISG’s continued focus on geographic diversification. "As JDAVIS joins ISG, we are strengthened by unifying two teams with growth-oriented, owner mindsets that will continue to drive strategic decisions and shared accountability," shared Lynn Bruns, ISG CEO. "In addition, expanding our footprint allows us to provide consistent quality and build deeper, more strategic relationships with our national clients—no matter where they operate."
May 15, 2025
NV5 Global (NV5), a Florida-based tech-enabled engineering, testing, inspection, and consulting firm that provides solutions for the built environment, has entered into a definitive agreement to merge with Acuren Corporation (Acuren), a Texas-based critical asset integrity services firm with industrial expertise in testing and inspection, engineering, and access optimization services. The merger between these two firms creates a $2 billion combined revenue testing, inspection, certification, and compliance (TICC) and engineering services firm. Dickerson Wright, Executive Chairman and Founder of NV5, commented, “I am delighted to play a part in bringing together these two winning businesses. The combination offers significant value for our shareholders and the opportunity to participate in the combined company’s long-term value creation potential as stockholders of Acuren. [Through] this process with the Acuren team, we are convinced that our partnership will allow us to serve our customers in more ways.”
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.