Engineering and Construction Market to Grow in 2023

• Global engineering services market to reach $1.2T

• Global construction market to grow at 6.6% CAGR

• Industrial IoT and cooperation between OEMs and ESPs to drive growth

• M&A activity in industrials sector to increase due to IIJA and IRA

Public Company Valuations

• CFAW Select Engineering Construction Index up 3.4% in Q1 2023

• 12-month return on index increased 4.4%

• All subsectors of Engineering Construction increased in Q1 2023 except Industrial Business Construction

• Civil Engineering Services had highest median revenue and EBITDA multiple of 1.2x and 14.4x, respectively

• Highway, Street, and Bridge Construction had median revenue and EBITDA multiple of 0.8x and 9.9x, respectively

• Residential Construction had median revenue and EBITDA multiples of 0.9x and 5.2x, while Industrial Business Construction had median revenue and EBITDA multiples of 0.5x and 11.7x, respectively

Mergers and Acquisitions

• M&A activity in industrials sector slowed down in 2022

• Increase in acquisitions of companies that build and provide maintenance services for highways, bridges, roads, and airports anticipated in 2023 due to IIJA

• US government has pledged to invest $485.0 million in green technologies and materials through IRA by 2023

• Majority of bidders in the infrastructure maintenance and remediation market expected to be strategic acquirers as opposed to financial investors due to capital-intensive nature of the industry