Monthly Archives: May 2014
Posted on May 28, 2014 by FMI CorporationWith more than 330 billion in capital expenditures to be conducted over the next four years in oil and gas construction markets, the energy infrastructure construction market will continue to boom. Many firms demonstrated record earnings performance in 2013, and for many firms 2014 is set to match if not exceed 2013 performance. With labor markets constricting and earnings improving, are oil and gas infrastructure firm valuations growing?
Posted on May 13, 2014 by FMI CorporationAcquisitions have always been a means to maximize value and create sustainable competitive advantage for engineering and construction firms. However, acquisitions of any size are a major undertaking for both the acquirer and the target. Acquisition fever, failure to recognize the costs of an acquisition, or a flawed understanding of the target company has derailed many plans for expansion. In service-based industries like engineering and construction, the key commodities being "purchased" in an acquisition include fragile intangibles like customer relationships, the leadership team, operational knowledge and culture. A mishandled integration process can diminish or eliminate stockholder value and erode an organization’s culture and talent.
This post was posted in Consulting, Investment Banking and was tagged with Inc., Skanska, ARCADIS, Jacobs, EMCOR, Comfort Systems, acquisition and integration management, engineering, construction, NRCI 2014 Q2
Posted on May 12, 2014 by Phil WarnerFMI's NRCI report has once again inched higher into positive territory with a score of 65.8, a gain of just 0.9 points over last quarter’s results. That’s another record for the NRCI, but that gain might have been higher if we didn’t include the change in material and labor costs as part of the Index score calculations. Almost every other component of the NRCI index improved over last quarter. The only exception is productivity, which slipped 1.7 points. We are caught in the middle of a recovery. A lingering recession mentality keeps companies from investing, banks from lending, and consumers—aka, “regular people”—from spending. Therefore, we have this vicious circle problem in the economy. Nonetheless, we are slowly working our way out of that “doom loop.” Being caught in the middle of a recovery can be as difficult as being caught in a recession, only it is a better problem to deal with.
Posted on May 5, 2014 by FMI CorporationThe U.S. oil and gas industry is on the brink of its largest human capital shortfall as it faces one of the most significant expansion periods in its history. Successful companies are thinking long term and building new talent pipelines, developing targeted interventions, assessing the business impact of skills shortages and considering the options available to build competency.