Weekly Briefing: September 12, 2025
- Socially Adept Solutions
- Sep 12
- 4 min read
Week of September 8, 2025
Construction Spending Continues to Fall
Nonresidential construction spending fell for the third straight month in July, driven largely by higher costs and labor shortages impacting private construction projects.
The fall in July was driven by a 0.5% decline in private nonresidential spending, partially offset by a 0.3% increase in public nonresidential spending. This mirrors the last 12 months, with private nonresidential falling 3.7% and public nonresidential increasing by 3.1%. This trend highlights concerns that private nonresidential spending will continue to fall through the end of the year.
Through the first half of 2025, the only categories to have maintained momentum were the religious and power categories of private nonresidential construction, while all other private subsegments have slowed.
The Associated General Contractors of America (AGC) survey highlights contributing factors: 16% of contractors had projects canceled, postponed, or scaled back due to tariffs; 45% of survey respondents reported delays due to labor challenges; 26% reported changes in project demands due to policy changes.
The House Passed a Bill Allocating $19B for Military Construction
The House of Representatives passed an annual defense policy bill this week that authorizes $18.89 billion for military construction and sets changes related to procurement for 2026.
The authorization covers various Army, Navy, and Air Force projects, National Guard and Reserve facilities, military family housing, international programs, and more.
The bill includes Department of Defense targets for veteran-owned small business participation, allows sole-source awards to qualified veteran-owned businesses, shifts authority over military construction projects to an unspecified “military department or government agency,” permits progressive design-build projects with annual reports, and launches pilots for Navy modular reactors and the use of 3D printing for Army installations.
Amendments to the bill allow the use of cost-plus incentive fee contracts for projects with the Navy’s multibillion-dollar Shipyard Infrastructure Optimization Program and standardize a process requiring firms to report on the number of veterans hired and retained for large projects.
September 8, 2025
McMillan Pazdan Smith (MPS), a South Carolina-based architecture, planning, and interior design firm, backed by Providus Capital Partners, has been joined by Hecht Burdeshaw Architects (Hecht Burdeshaw), a Georgia-based architecture firm. Leveraging Hecht Burdeshaw’s experience and presence in Columbus, this acquisition strengthens MPS’ ability to serve clients across the Georgia region. Chad Cousins, CEO of MPS, commented, “Hecht Burdeshaw’s commitment to teamwork and client service reflects the MPS purpose and core values. We are excited to invest and add further value to the Columbus and Auburn-Opelika region together.”
September 8, 2025
Signal Hill Equity Partners (Signal Hill), a Canada-based middle-market private equity firm, has partnered with Kluber Architects + Engineers (Kluber), an Illinois-based full-service design firm. This partnership strengthens Signal Hill’s national architecture, engineering, and design platform. Ahmed Abdel-Saheb, Managing Director at Signal Hill, commented, “Kluber brings decades of experience delivering innovative design solutions for municipalities, public safety, healthcare, and education clients across Illinois and the Midwest. We’re honored and look forward to supporting their team as we continue building a platform that delivers lasting impact nationwide.”
September 9, 2025
CHA Consulting (CHA), a New York-based full-service engineering, design, consulting, and PM/CM firm backed by H.I.G. Capital, has acquired Midwestern Engineers (Midwestern), an Indiana-based engineering firm specializing in critical water, wastewater, stormwater, and survey solutions. This acquisition advances CHA in its goal to become a national provider of integrated infrastructure services, expands its reach via Midwestern geography, and positions both firms to meet the high client demand for water services. “The addition of Midwestern Engineers to CHA creates a powerhouse of water expertise and local insight throughout the Hoosier state and beyond,” stated Jim Stephenson, CEO of CHA. “Together, we’ll be better able to serve our clients and communities as they face challenges related to delivering clean water and managing wastewater and stormwater.”
September 10, 2025
CannonDesign, a New York-based design firm, has acquired Christner Architects (Christner), a Missouri-based architecture firm. This partnership broadens CannonDesign’s expertise and positions the firm to amplify its impact across the healthcare, education, science, commercial, and cultural markets. Brad Lukanic, CEO of CannonDesign, noted, “Christner's longstanding roots across Missouri, combined with their technical expertise and creative energy, complement our own strengths wonderfully. I’m excited for the many ways we’ll grow and expand what’s possible together.”
September 11, 2025
Salas O’Brien, a California-based employee-owned engineering and facility planning firm backed by Blackstone, has merged with AME Consulting Engineers (AME), a North Carolina-based mechanical, electrical, plumbing, and technology design firm. The strategic merger enhances both firms and allows Salas O’Brien to leverage AME’s experience in complex facility renovations and strong client retention, which stems from AME’s design focus on safety, resiliency, and efficiency. Darin Anderson, Chairman and CEO of Salas O’Brien, commented, “AME’s experience and market reputation perfectly complement Salas O’Brien’s mission. Together, we bring specialized expertise across government, healthcare, aviation, and education, strengthened by the power of broad employee-ownership.”
With a fun spin on the traditional canned food donation drive, Devenney Group recently held a contest to collect cans and build sculptures from them, donating the results to St. Mary’s Food Bank. The firm teamed up with other organizations to create the Banner Health E2P2 squad. Using 5,880 cans, they created a 7-foot-tall structure featuring Pac-Man, naming it "Chomping Away at Hunger, One Byte at a Time!"
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.