Week of March 9, 2026

Utilities Turn to Faster Grid Upgrades to Meet Surging Power Demand

• Utilities are expanding transmission capacity by upgrading their existing grids. Grid-enhancing technologies are improving line capacity, reducing congestion, and improving reliability without requiring entirely new transmission corridors to be built.

• Recent rising electricity demand is prompting these upgrades, particularly driven by growth in data centers, which is putting more pressure on the grid, pushing utilities to look for faster ways to add capacity and manage load.

• The shift is opening work across multiple parts of the AEC value chain. These upgrades require new conductors, sensors, monitoring tools, controls, and communications systems, creating opportunities for engineers, contractors, and equipment suppliers to implement creative solutions.

• This marks a broader move toward faster, retrofit-driven infrastructure investment. Instead of relying only on long-lead transmission megaprojects, the industry is using targeted grid upgrades to respond more quickly to demand, improve resilience, and extend the life of aging assets.

Construction Backlog Improves in February as Contractor Confidence Strengthens, While Growth Remains Uneven

• Backlog stabilized in February, though the recovery remained modest. The industry’s backlog edged up to 8.1 months, improving from January but still below the level from a year earlier, suggesting steadier near-term activity.

• Contractors grew more confident about the months ahead, as ABC’s confidence readings improved for sales, profit margins, and staffing levels, signaling expectations for better project conditions even as the broader market remains mixed.

• Backlog rose sharply in the Middle States, the only region ahead of last year. However, the report also showed that strength remains concentrated among larger firms and in projects tied to heavy industrial and data center activity.

• Overall, growth remained uneven across the industry, with backlog gains concentrated in select regions and among larger contractors rather than reflecting a broad-based recovery.

March 5, 2026

EFCG, through its registered broker-dealer affiliate EFCG Transaction Services LLC, is pleased to share that our client, Littlejohn & Co. (Littlejohn), a Connecticut-based private investment firm, has entered into a strategic partnership with the management team and employees of GDS Associates (GDS), a market-leading provider of power infrastructure consulting and advisory services to the U.S. electric utility industry. Together, Littlejohn and GDS will invest in expanding GDS’s capabilities and pursue complementary acquisitions to build a scaled platform supporting utilities across the full lifecycle of consulting, planning, engineering, and field services.

“The U.S. power grid is rapidly evolving due to demands from electrification, grid modernization, renewable integration, and surging data center growth. GDS has built a strong reputation supporting utilities through complex planning and decision-making processes,” said Michael Kaplan, Managing Director at Littlejohn. “We are excited to partner with David and the talented team at GDS and support the business as they expand their capabilities and provide solutions to utilities nationwide.”

EFCG served as advisor to Littlejohn on the transaction.

March 9, 2026  

Pape-Dawson Engineers (Pape-Dawson), a Texas-based civil engineering, environmental, and surveying firm, backed by Palm Beach Capital, has acquired BHC, a Kansas-based national engineering and surveying firm. This acquisition advances Pape-Dawson’s effort to expand its geographic footprint by strengthening its presence in the Midwest and enhancing its ability to serve the growing Kansas City market. “BHC has built an outstanding reputation rooted in technical excellence, strong client relationships, and deep community involvement,” stated Trey Dawson, President of Pape-Dawson. “We’re grateful to welcome their talented team and expand the services and resources available to clients throughout the Midwest.”

March 11, 2026 

Salas O’Brien, a California-based employee-owned engineering and facility planning firm backed by Blackstone, has merged with Rock Brook, a New Jersey-based firm providing integrated solutions across mechanical, electrical, fire protection, security, and sustainable design. This strategic move enhances Salas O’Brien’s ability to deliver integrated design service offerings across various client sectors, including healthcare, higher education, life sciences, manufacturing, and corporate clients. Darin Anderson, Chairman and CEO of Salas O’Brien, said, “Rock Brook’s depth of technical expertise, combined with their award-winning portfolio and strong market presence, makes them an outstanding addition to Salas O’Brien. Our shared commitment to innovation, collaboration, and client success enhances how we solve complex challenges and create measurable value.”

March 11, 2026 

Olsson, a Nebraska-based engineering and design firm, backed by Morgan Stanley Capital Partners, has acquired The Process Group (TPG), a Missouri-based chemical engineering and process design firm. The acquisition broadens Olsson’s service capabilities while unlocking new opportunities for TPG’s clients and employees. "We’ve partnered with TPG for several years and have been impressed with their expertise,” commented Tyler Fritz, Senior Vice President and Industrial Market Leader at Olsson. “This acquisition strengthens our ability to deliver fully integrated solutions for our clients.”

March 11, 2026 

BKF Engineers (BKF), a California-based engineering, surveying, and land planning services firm, backed by Long Point Capital, has acquired Lotus Water, a California-based water resources and climate engineering firm. This acquisition enhances BKF’s water-focused services and better equips the combined firm to address complex water and climate challenges for its clients. “Water resilience is one of the defining infrastructure challenges of our time,” said Peter Wijsman, Executive Vice President of Infrastructure Solutions at BKF. “By bringing Lotus Water into BKF, we are intentionally building a premier water resources platform, one that combines deep technical experience, innovative thinking, and the scale required to help communities and utilities adapt to climate change, protect critical infrastructure, and plan confidently for the future. This acquisition accelerates our ability to lead in the water market and innovate solutions that are both resilient and enduring.”

Kimley-Horn has recently expanded its Engineers Week outreach to support the next generation of engineering talent and strengthen ties with local communities. Employees mentored students, led hands-on STEM activities, supported robotics teams, and worked with schools and ACE Mentor programs in Dallas, Richmond, Charlotte, Indianapolis, Georgia, and Puerto Rico, giving students earlier exposure to engineering careers and direct access to industry professionals. These initiatives help develop the next generation of engineers while giving current firm leaders the opportunity to help shape that trajectory.

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.