Deloitte: Construction cost pressures to continue in 2020

Deloitte | January 08, 2020

A new report from accounting services firm Deloitte touches on what construction pros already know: It's getting harder to make a profit in commercial building. According to the 2020 Construction and Engineering Industry Outlook, a number of factors will put extra pressure on U.S. engineering and construction companies profitability in 2020. These include increasing project complexity, competition from Asian companies, talent shortages and supply chain constraints. In addition, construction and input costs for key building materials such as steel are rising, largely driven by limited supply and tariff uncertainties. The report cites the 2019 Turner Building Cost Index, which measures costs in the nonresidential building construction market in the U.S., and noted that it increased to a value of 1177 in 4Q 2019, the highest ever in its 13-year history.

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ROBOTICS AND AUTOMATION

Allied Motion Acquires Spectrum Controls, Inc., a Leader in Industrial Control Solutions

Allied Motion Technologies Inc. | January 03, 2022

Allied Motion Technologies Inc. (Nasdaq: AMOT) (“Allied Motion” or the “Company”), a designer and manufacturer of precision and specialty controlled motion products and solutions for the global market, announced that it has acquired Spectrum Controls, Inc. (“Spectrum”), an innovator and manufacturer of a wide variety of Industrial I/O and Universal Communications Gateway products. The purchase price was $70 million, of which $45 million was paid at closing with a combination of $27 million in cash and the remainder in the Company’s common stock at a price of $35.82 per share. The remaining $25 million will be paid in two equal payments in 2022 and 2023 comprised of 50% cash and 50% stock. Spectrum has a long history of innovation, partnership, and customized customer fulfillment, and we are excited to welcome the entire Spectrum team to the Allied family. This acquisition is an excellent strategic fit and provides us with a tremendous opportunity to enhance our position as a value-added solutions supplier to the industrial automation and industrial controls market,” commented Dick Warzala, Chairman and CEO. “In addition, Spectrum enhances our customer base, adds significant engineering resources and has the technology and know-how to provide solutions that meet the system requirements of Functional Safety. “Allied has built an impressive organization. We believe that given their strong leadership team and their One Allied culture, we have found the ideal partner to successfully execute on the many strategic initiatives and opportunities we have in front of us. We look forward to a bright future together.” -Bruce Wanta, Founder and President of Spectrum Mr. Warzala further added, We believe we can drive growth by leveraging Spectrum’s strong partner relationships with large industrial automation companies, utilizing their global distribution channels, and benefiting from the continued digital transformation around IIoT, AI and analytics that are driving the increased use of smart factory floor devices. In 2022, Spectrum is expected to be accretive to both Allied’s earnings per share and gross margin profile. The acquisition structure includes a tax election that is expected to offset cash taxes by approximately $10 million over the next 15 years. Founded in 1983 and headquartered in Bellevue, WA, Spectrum designs and manufactures a wide range of highly sophisticated I/O modules, marquee displays, and industrial gateways for broad industrial controls applications through partnerships with PLC manufacturers and distributors. With approximately 72 employees, Spectrum serves large industrial automation projects and specialty applications domestically and throughout the world, including Europe, Asia, the Americas, and the Middle East. For more information visit https://www.spectrumcontrols.com. About Allied Motion Technologies Inc. Allied Motion (Nasdaq: AMOT) designs, manufactures and sells precision and specialty controlled motion products and solutions used in a broad range of industries within our major served markets, which include Vehicle, Medical, Aerospace & Defense, and Industrial. Headquartered in Amherst, NY, the Company has global operations and sells into markets across the United States, Canada, South America, Europe, and Asia-Pacific. Allied Motion is focused on controlled motion applications and is known worldwide for its expertise in electro-magnetic, mechanical, and electronic motion technology. Its products include brush and brushless DC motors, brushless servo and torque motors, coreless DC motors, integrated brushless motor-drives, gear motors, gearing, modular digital servo drives, motion controllers, incremental and absolute optical encoders, active (electronic) and passive (magnetic) filters for power quality and harmonic issues, and other controlled motion-related products. The Company’s growth strategy is focused on being the controlled motion solutions leader in its selected target markets by leveraging its “technology/know how” to develop integrated precision solutions that utilize multiple Allied Motion technologies to “change the game” and create higher value solutions for its customers. The Company routinely posts news and other important information on its website at www.alliedmotion.com.

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Asite’s CDE to Streamline Collaboration Across Ogilvie Construction’s Current and Upcoming Construction Projects

Asite | September 24, 2020

Asite’s Common Data Environment (CDE) solution will be used on all of Ogilvie Construction’s current and upcoming construction projects. Ogilvie Construction has chosen to use Asite’s Common Data Environment (CDE) on all their upcoming projects, including various initiatives across Scotland. Asite’s cloud-based platform will streamline Ogilvie’s document management and increase collaboration across their projects. Rob Clifton, Asite SVP for UK & Europe said: “The work Ogilvie Construction is undertaking across Scotland is improving the quality of life for many different communities, from helping to deliver affordable housing to transforming derelict buildings into new hubs for both the public and private sectors. “Asite is excited to be able to support their exciting portfolio of projects and work with such a renowned family-owned business.” Spanning a range of different sectors, Ogilvie Construction works across education, health, industrial, hotels, residential, retail and industrial projects in the UK. One project in Ogilvie Construction wide-ranging portfolio which will implement the Asite CDE is the construction of the 245-bed Marriott hotel in Glasgow.

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ENGINEERING TECH

TriMech Acquires Adaptive Corporation and Forward Vision

TriMech | November 08, 2021

TriMech, a leading provider of engineering design and additive manufacturing solutions, announced it has acquired Adaptive Corporation and Forward Vision. Terms of the transaction were not disclosed. TriMech is a portfolio company of The Halifax Group, a Washington, D.C.-based private equity investor.Headquartered in Richmond, VA, TriMech helps clients design better products via a broad suite of engineering- and manufacturing-related solutions and services. The company works with leading software and hardware partners including Dassault Systèmes, Stratasys, and Artec, among others, throughout the central and eastern United States and Canada. In addition to its product portfolio, TriMech delivers expert technical support, training, consulting, implementation, additive manufacturing, and staffing services to its customers through its world-class engineering staff. The acquisitions of Adaptive Corporation and Forward Vision expand TriMech's Dassault Systèmes portfolio offering to include CATIA, DELMIA, SIMULIA and ENOVIA. Adaptive is known for its strong capabilities in advanced CAD and simulation, product lifecycle management (PLM), metrology, and Creaform portable 3D scanners. The Forward Vision team specializes in CATIA, DELMIA, and FlexSim and has expertise in robotics, ergonomics, factory scheduling, throughput simulation, and logistics workflows. Both companies have clients in transportation and automotive, aerospace and defense, and industrial equipment. "We aim to be our clients' trusted technology partners. By bringing together great teams with new product offerings and expertise, TriMech will deliver wider solutions and deeper industry knowledge. Growth by acquisition is part of our long-term strategy to help our clients manage rapid digital transformation." -Marcel Matte, President and CEO of TriMech Adaptive will continue to operate under the name Adaptive – A TriMech Company. The Forward Vision team will join Adaptive's sales and support teams. Senior management at Adaptive and Forward Vision will remain in place. Wayne Tanner, Adaptive's President, will serve as General Manager of Adaptive – A TriMech Company, reporting to Ted Lee, TriMech's Chief Services Officer. Forward Vision's President Joe Hugan and Vice President John Moran will serve as Product Managers for TriMech's Robotics and Discrete Event Simulation teams, continuing to support clients with their existing teams. As part of these acquisitions, TriMech also announced it is acquiring the Dassault Systèmes and EASA Software clients of Front End Analytics. These clients will now be supported by the experienced team at Adaptive and TriMech. After transitioning these clients, Front End Analytics will continue as an independent business focused on its Physics Informed Machine Learning and AI solutions. "The demand for increasingly sophisticated technology has accelerated as engineers and manufacturers introduce or improve products to meet market needs. Our combined client base will have access to more solutions that involve critical areas of their business." -Adaptive's President Wayne Tanner Forward Vision President Joe Hugan commented, We have always thrived by working closely with each other and with our clients. As part of TriMech, our people will have more opportunities to collaborate, learn, and grow, making us better able to meet our clients' needs and ensure their success. About TriMech Founded in 1998 and headquartered in Richmond, VA, TriMech provides computer-aided design and engineering software, additive and subtractive manufacturing solutions, and associated training, consulting, and staffing services for a variety of industries. Its tools support 3D modeling, simulation, virtual replication, collaboration, and information intelligence applications. The company has 32 locations across the central and eastern U.S. and Canada and serves more than 15,000 active clients. For more information, please visit www.trimech.com. About The Halifax Group Founded in 1999, The Halifax Group is a private equity firm that partners with managers and entrepreneurs to recapitalize and grow lower middle-market businesses with total enterprise values generally between $50 million and $300 million. Halifax specializes in equity recapitalizations, corporate carve-outs and management buyouts and invests across a variety of industries, including outsourced business services, health and wellness, and franchising. The firm is headquartered in Washington, D.C. For more information, please visit www.thehalifaxgroup.com.

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