Weekly Briefing: May 9, 2025
- Socially Adept Solutions
- May 9
- 5 min read
March Decrease in Construction Spending with More Deceleration Expected
In March, U.S. construction spending saw an unexpected decline of 0.5%, following a slightly revised 0.6% increase in February. Economists had anticipated a 0.2% rise.
However, compared to the previous year, construction spending in March increased by 2.8%.
Private construction project spending decreased by 0.6%, with residential construction investment falling by 0.4%. However, spending on new single-family projects rose slightly by 0.1%.
Homebuilding is being hindered by high mortgage rates and tariffs on imported goods, with recent tariffs raising construction costs by $10,900 per home.
Public construction spending dropped by 0.2%, with state and local government spending also decreasing by 0.2%, and federal government project spending falling by 0.4%.
New Fees on Electric Vehicles Proposed to Support Highway Trust Fund
Lawmakers are considering fees on electric and hybrid vehicles to boost revenue to the Highway Trust Fund (HTF) which has been spending more than it earns from taxes on fossil fuels and heavy vehicles.
The HTF mainly finances highway projects and some mass transit. The gas tax, its primary revenue source, hasn't been raised or adjusted for inflation since 1993.
From 2007 to the present, the HTF has collected $724.5 billion but spent $932.2 billion, with the gap expected to widen.
The decline in HTF revenue is due to fewer vehicle miles traveled, better fuel efficiency, rising construction costs, and the increasing number of electric vehicles.
A proposed measure includes a $250 annual fee on electric vehicles and a $100 fee on hybrids, projected to generate over $38 billion in a decade. While the construction industry supports this, some advocacy groups argue the fees are unfair and should be part of a comprehensive transportation funding reform.
May 6, 2025
EFCG is pleased to announce that our client, ILLUME Advising (ILLUME), a Wisconsin-based research and strategy consultancy specializing in the power sector, has been acquired by E Source, a Colorado-based research, consulting, and data science firm serving the utility sector and a portfolio company of Align Capital Partners.
Anne Dougherty & Sara Conzemius, ILLUME’s founders and co-owners, commented, "We are appreciative of the strategic advice and transaction support we received from the EFCG team through this process. We are excited for what’s ahead, and confident our clients will see immediate value."
EFCG served as the exclusive financial advisor to ILLUME.
May 1, 2025
Tetra Tech, a California-based provider of consulting and engineering services in water, environment, and sustainable infrastructure, has signed a definitive agreement to acquire SAGE Group Holdings Ltd (SAGE Group), an Australia-based automation solutions firm with expertise in municipal water and industrial manufacturing automation, smart infrastructure, and systems integration. This acquisition will broaden Tetra Tech’s digital systems solutions to reach a wider range of clients, while also offering advanced electrical and instrumentation design, engineered control systems, cybersecurity, and cloud integration. Dan Batrack, Tetra Tech Chairman and CEO, stated, “The addition of SAGE Group’s digital automation capabilities will further enhance our offerings by bringing additional expertise, AI-enabled technology, and demonstrated client solutions to our collective team.”
May 2, 2025
Spheros Environmental (Spheros), a Colorado-based environmental consulting services firm, backed by Union Park Capital, has acquired Northwater Consulting (Northwater), an Illinois- and North Carolina-based environmental and geosciences consulting firm. This acquisition expands Spheros’ geographic reach and expertise in water resources, geosciences, and environmental planning, while also providing Northwater with a network that enables them to expand the impact of their work. Andra Kidd, CEO of Spheros Environmental, commented, “[Northwater’s] leadership in water resources, geosciences, and environmental planning combined with global to local perspectives brings critical strengths to our company – enabling us to better serve clients and tackle some of the most pressing environmental challenges of our time.”
May 5, 2025
Colliers Engineering & Design (Collier Engineering), a New Jersey-based engineering, architecture, design, and consulting firm, and a division of the professional services and investment management company Colliers, has acquired Terra Consulting Group (Terra), an Illinois-based telecommunications infrastructure engineering firm. This strategic move enhances Colliers Engineering’s presence in the Midwest and enables Terra to expand its service offerings and provide more integrated solutions to its clients. “Terra brings deep expertise and relationships in the telecommunications sector, bolstering our existing capabilities and allowing us to further capitalize on the rapid growth in the industry,” stated, Kevin L. Haney, President and CEO of Colliers Engineering. “We are excited to welcome the Terra team to the Colliers family.”
May 6, 2025
The EI Group (EI), a North Carolina-based environmental, health & safety consulting firm, acquired Aerosol Monitoring & Analysis (AMA), a Maryland-based industrial hygiene, environmental, and health & safety services firm. The collaboration will bolster EI’s standing and enhance its operations and marketing efforts by leveraging AMA’s renowned expertise in comprehensive consulting and training. Greg Lathan, President of EI said, “Both privately owned for over 36 years, AMA and The EI Group have a tradition of entrepreneurial business acumen focused on delivering quality EHS consulting/training services to a distinctly different base of clients. Our combined experience in different markets will allow EI the opportunity to expand our expertise to AMA’s public sector customers and AMA to support EI’s private sector manufacturing.”
May 7, 2025
Environ Energy (Environ), a New York-based firm that provides sustainable energy solutions backed by Plexus Capital, Martinson Ventures, 424 Capital, and Eagle Private Capital, has acquired Rapid Power Management (RPM), a Texas-based advisory firm with experience in the Electric Reliability Council of Texas (ERCOT) territory. The acquisition strengthens Environ's capacity to provide commercial energy procurement, energy efficiency, sustainability, and engineering services to a wider national audience. “We’ve been looking for the right partner to expand our product line and reinforce our presence in Texas,” said Christopher Sternberg, CEO of Environ. “With JD [Dodson, founder of RPM] and his team, we’ve found proven entrepreneurs who deeply understand their market. I could not be more excited to welcome RPM into the Environ family.”
Staff members at GAI Consultants supported the firm’s 2024-2025 charity of choice, Building Homes for Heroes, Inc., and successfully met their employee fundraising goal. GAI Consultants will match the employee donations dollar-for-dollar, and these donations will support Building Homes for Heroes and their mission to make a positive and significant difference in the lives of veterans. This charity builds and modifies homes, providing them mortgage-free to veterans and their families. Additionally, they offer programs such as financial planning services, family funding, and emergency support, and ensure that each home recipient has a financial planning representative. Through these efforts, Building Homes for Heroes strives to provide the necessary resources to help veterans build better lives.
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.