Construction Employment Surges Past Pre-Pandemic Levels
The construction sector added 36,000 jobs in May, increasing total industry employment to 40,000 jobs more than in February 2020. Residential construction jobs are currently 7.6% higher than pre-pandemic levels, leading the way for growth. Residential specialty trade contractors have added 11,700 new jobs since the first quarter of 2022. 1 2
Housing Starts Cool Down in May…
Due to persisting supply chain issues and fears of rising mortgage rates May housing starts declined 14.4% to an annualized rate of 1.55 million. May building permits declined to an annualized rate of 1.7 million units, outpacing the months housing starts. Despite recent rate hikes, residential construction is expected to benefit from building permits exceeding housing starts in the short term. The continuation of large construction backlogs is also expected to stabilize construction in the short term.3
Nucor Acquires Two Companies in Plans to Launch a New Business Unit…
known as Nucor Towers & Structures. The new business unit will serve the transportation, utilities, and telecommunications sectors. Summit Utility Structures LLC and Sovereign Steel Manufacturing LLC were the two companies acquired to form the new business unit. The companies are engaged in producing metal and steel signage for utilities, highways, and other infrastructure applications.4
Lumber prices drop to their lowest point…
this year to $780 per thousand board feet (TBF) in May. Since March, lumber prices have decreased by approximately 19% from $965 per TBF. Prices remain 9% higher in May than $716 per TBF in June 2021. Lumber prices may continue to lower with the commerce department's preliminary decision to lower Canadian softwood lumber tariffs by 6.26%, effective in August 2022.5 6 7
Largest Transactions Closed
- Oldcastle BuildingEnvelope, Inc.
- KPS Capital Partners, LP
- C.H.I. Overhead Doors, Inc.
- Nucur Corporation
- Tensar Corporation
- Commercial Metals Company
- Certain West Coast Cement & Ready Mixed Concrete Operations of Martin Marietta Materials, Inc.
- CalPortland Company
- Concrete and Aggregates Assets
- Eagle Materials, Inc.
- Level5 Tools, LLC
- Worthington Industries, Inc.
- One Businesss in the East Segment of Summit Materials, Inc.
- Undisclosed Buyer
- McMahon Associates, Inc.
- Bowman Consulting Group Ltd.
- Tri-State Paving & Sealcoating, LLC
- Energy Services of America Corporation
- Assets of Heartland Industries, Inc.
- Superior Plus Corp.
Other Financial Buyer Transactions Closed
- Unistructural Support Systems Ltd.
- Brixey & Meyer Capital
- Drive Development Partners LLC
- Lloyd Jones LLC
- Service Minds, Inc.
- Altamont Capital Management, LLC
- Aero Mist, Inc.
- Crown Capital Investments, LLC
- BlueWave Solar, LLC
- Axium Infrastructure Inc.
- Bandera Utility Contractors, LLC
- Argonaut Private Equity
Other Strategic Buyer Transactions Closed
- Emerald Construction Management, Inc.
- urban-gro, Inc.
- The Boston Solar Company, LLC
- SinglePoint Inc.
- Shanahan Plumbing, LLC
- Water Intelligence plc
- Boyd Holmes Engineering, Inc.
- Forte and Tablada, Inc.
- Thad Hedrick Builders, LLC
- Southern HVAC Corporation
- NEXGEN Air Conditioning and Heating, LLC
- Wrench Group, LLC
Source S&P Capital IQ as of 7/8/2022 and PCE Proprietary Data
This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.
EBIT - Earnings Before Interest and Taxes