2021 construction output suspected to be 6.4% lower than pre-Covid growth rates

PBC Today | August 05, 2020

Despite the government putting industry at the centre of its recovery plans, the full impact of Covid-19 is expected to spell uncertainty for the construction industry. According to the Construction Products Association’s (CPA) latest forecasting, changes to the UK economy brought on by the Covid-19 pandemic, and uncertainty around consumer confidence and unemployment rates, could prove significant to construction industry activity returning to pre-Covid growth rates. Although activity on-site returned quicker than initially expected post-lockdown, the CPA Summer Scenarios still anticipates construction output in 2020 to fall by 20.6%. The worst affected sectors include private housing (-33%) and commercial (-29%). The report suggests that returns to construction sites from mid-May were largely to drive completions on existing projects and refurbishments that couldn’t take place during the restrictions. However, uncertainty remains around long-term demand and future orders given the state of the wider economy.


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Engineering Tech

Robinson Noble Joins Terraphase Engineering

Newswire | July 20, 2023

Terraphase Engineering Inc. (Terraphase), a leading environmental engineering and design firm, announced today that it has entered into a definitive agreement to acquire Robinson Noble, an environmental consulting firm with a long-standing reputation for excellence in environmental characterization and remediation, water resources, water rights, and geotechnical engineering. The acquisition provides opportunities for both firms to combine their expertise and expand their offerings to private and public sector clients. "I have no doubt that the merger of Robinson Noble and Terraphase Engineering will be of mutual benefit to our clients," said Jim Hay, president of Robinson Noble. "Not only will our common service lines be strengthened by a larger team of professionals, but each firm brings new capabilities and expertise to bear in support of client projects. I can't wait to get started." William Carson, president of Terraphase, stated, "Our common company cultures make Terraphase and Robinson Noble a great fit together. Both companies are well recognized for commitment to our employees, the community, and the excellent work product we deliver for our clients. This combination will provide employee opportunities to expand their skill sets and contribute to projects across the country. For our existing clients, this geographic expansion allows us to deliver on larger projects in the Pacific Northwest and greatly expand our water and geotechnical service lines." About Terraphase Terraphase, headquartered in Oakland, California with 12 offices nationwide, is known for providing technical leadership on complex environmental and engineering challenges since its founding in 2010. With a team of interdisciplinary and entrepreneurial professional experts, our practitioner-led firm is committed to providing comprehensive, cost-effective solutions for our clients. About Robinson Noble Robinson Noble, based in Tacoma, Washington, began as a groundwater resources consulting firm in 1947. Today, they have developed into a full services environmental and geotechnical consulting firm with a reputation for providing clients with their technical expertise and high-quality deliverables.

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North American Construction Group Announces Transformative Acquisition of MacKellar, A Leading Private Australian Heavy Equipment Solution Provider

Globenewswire | July 27, 2023

North American Construction Group Ltd. (“NACG” or the “Company”) (TSX:NOA) today announced that it has entered into a definitive purchase and sale agreement to acquire (the “Transaction”) MacKellar Group (“MacKellar”) for an estimated $395 million (the “Consideration”). MacKellar Group, with its heavy construction equipment fleet, is an Australia-based provider of heavy earthworks solutions to the mining and civil sectors, with a strong reputation derived from decades of reliable performance. The Transaction will significantly expand NACG’s capability and allow the Company to serve a highly valuable and diversified base of customers globally. The Transaction emerged through continued dialogue with MacKellar over the past two years, following NACG’s entry into Australia through the acquisition of DGI Trading Pty Limited in 2021. The acquisition of MacKellar is highly complementary to, and a natural strategic fit with, NACG given shared cultural alignment, focus on safety and operational similarities. MacKellar will continue to operate and execute on its growth strategy, while delivering on its commitment of service to all its customers and partners. “NACG has built a strong relationship with MacKellar over the past two-plus years. Given the operational and cultural similarities that our companies share, this acquisition is a rare and attractive opportunity,” said Joe Lambert, Chief Executive Officer of NACG. “Over the years, we have worked extremely hard to be part of the solution to help lower the operating costs of our customers through safe, efficient operation and maintenance of our equipment fleet. We are excited about partnering with MacKellar to serve our expanded customer base with the same innovations at a time when commodity producers are striving to maximize production and efficiency. I want to welcome the MacKellar team to the NACG family. We are extremely proud to be sharing in what we believe will be a bright future together.” “Joining NACG offers a significant opportunity for both companies to share best practices and execute on our growth strategy. Our shared culture, highly skilled maintenance and operations teams, and now global operations will position us as a leader in heavy equipment fleet, allowing us to better serve customers across Australia,” said Duncan MacKellar, Chairman of MacKellar Group. Strategic Highlights Combined Business with Significant Global Reach and Diversified Customer Base: MacKellar provides the opportunity to expand the Company’s geographic and operational presence in Australia, while adding a high-quality investment-grade customer base. The Transaction provides diversification with no single end market contributing more than approximately a third of adjusted EBIT. Shared Core Values and Culture: MacKellar shares NACG’s values and is committed to hands-on management, continuous drive to be the low-cost provider, a focus on building strong partnerships with customers, and maintaining operating and safety excellence. Turnkey Operations with Highly Valuable Asset Base: MacKellar Group adds approximately 450 mobile heavy equipment assets; 1,000 employees, including over 375 maintenance personnel; and 15 operating projects across a variety of service offerings including contract mining, civil earthworks, dry and maintained equipment rentals and component rebuilds. Its asset base is comprised of a well-maintained fleet operating at effective utilization levels. Prudent Approach to the Transaction Minimizes Execution Risk: Continuous dialogue and in-person operational field reviews by both parties has allowed for the Company to ensure there is a strong cultural fit and alignment between the two organizations. This alignment is also reflected in the transaction structure with a significant portion of the consideration being deferred. Robust Growth Prospects with Strong Backlog: Operations in Western Australia and Queensland serve as a growth pillar given the large and diverse resource markets combined with a mining friendly jurisdiction. The combined company is expected to have over $4.0 billion in contractual backlog by December 31, 2023 which will be the foundation to drive significant growth. “The transaction represents a major milestone for NACG and adds significant scale to our business. Both NACG and MacKellar are leaders with strong reputation, culture and commitment to safety. This partnership will accelerate our combined growth and allow us to better serve our customers on a global scale,” said Martin Ferron, Chairman of the Board of NACG. About NACG North American Construction Group Ltd. is a premier provider of heavy civil construction and mining services in Canada, the U.S. and Australia. For 70 years, NACG has provided services to the mining, resource, and infrastructure construction markets. About MacKellar Group Established in 1966 based on humble family values MacKellar has earned an enviable reputation in the industry for performance and reliability. MacKellar specialize in heavy earthmoving equipment solutions and has a proud history of working on both mining and civil earthwork projects around Australia.

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National Hispanic Contractors Association (NAHICA) Partners With PlanHub to Empower Hispanic Subcontractors in the Construction Industry

Newswire | August 25, 2023

The National Hispanic Contractors Association (NAHICA) is excited to announce a groundbreaking collaboration with PlanHub, a leading construction project management platform. This partnership aims to foster growth and opportunities for Hispanic subcontractors within the construction industry by connecting them with a multitude of construction projects available through PlanHub's extensive network of general contractors. NAHICA is a renowned organization dedicated to empowering Hispanic contractors and subcontractors, fostering their professional development, and promoting diversity within the construction sector. PlanHub is a cutting-edge technology platform that simplifies the construction bidding process and streamlines communication between general contractors and subcontractors. This strategic alliance between NAHICA and PlanHub seeks to bridge the gap between Hispanic subcontractors and construction projects, thereby enhancing their visibility and chances of securing projects that align with their expertise. By leveraging PlanHub's robust database of construction projects, NAHICA aims to provide its members with unprecedented access to a wide range of opportunities. Hispanic subcontractors will have the ability to bid on and collaborate with general contractors on projects that span various sizes, scopes, and specialties. This collaboration is a testament to NAHICA's commitment to equipping Hispanic contractors with the tools and resources they need to succeed in the competitive construction landscape. Hispanic subcontractors who are NAHICA members will soon be able to benefit from the streamlined access to PlanHub's extensive database of construction projects. This collaboration promises to drive innovation, diversity, and excellence within the construction industry. About PlanHub PlanHub is the cloud software platform that empowers commercial construction professionals to expand their businesses by optimizing workflows, improving collaboration, and offering data-driven insights for smarter choices. Our user-friendly tools assist contractors and suppliers throughout the entire pre-construction journey, delivering qualified leads, seamless team cooperation, efficient document handling, complete bid management solutions, and valuable data insights within a fully integrated ecosystem. About National Hispanic Contractors Association (NAHICA) The National Hispanic Contractors Association (NAHICA) is a leading organization dedicated to empowering Hispanic contractors and subcontractors in the construction industry. With a strong commitment to diversity and professional growth, NAHICA offers resources, networking opportunities, and advocacy to foster success within the Hispanic construction community.

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Aegion Announces Acquisition of Portland Utilities Construction Company, LLC

Globenewswire | August 01, 2023

Aegion Corporation, a leading provider of infrastructure maintenance, rehabilitation and technology-enabled water solutions, today announced the acquisition of Portland Utilities Construction Company, a preferred underground utility contractor in the Southeast and Texas. Portland Utilities Construction Company, LLC (PUCC) plans to operate under its current company name in the near term. Founded in 1991 by Ernie Woodcock, PUCC found its niche in the trenchless pipe rehabilitation industry by pioneering and promoting the “pipe bursting” method of pipe replacement in Tennessee and its seven border states. In 1995, Ernie’s son, Mike Woodcock, began working at PUCC. Today, PUCC is one of the premier contractors in trenchless pipe rehabilitation servicing municipal clients across the Southeast and Texas. “The addition of Portland Utilities bolsters our ability to deliver additional specialized services to customers in Tennessee and beyond,” said Rob Tullman, President and CEO, Aegion. “We value PUCC’s legacy in the industry and are excited to leverage their capabilities and grow together.” PUCC facilities and employees will remain in place, including Vice President Mike Woodcock and Controller John Keck, who will continue to lead the organization for the foreseeable future. “Our employees, past and present, are responsible for all our success at PUCC. Because of them, our customers have trusted the PUCC name for more than three decades,” said Ernie Woodcock, President, Portland Utilities Construction Company, LLC. “I thank them as we start a new chapter with Aegion and continue to deliver the highest quality service with additional resources and support.” About Portland Utilities Construction Company, LLC For more than 30 years, Portland Utilities Construction Company, LLC has been dedicated to the trenchless pipe rehabilitation industry by rehabilitating and replacing pipe in more than a dozen states and the District of Columbia – a total of almost 3,000,000 linear feet – using both CIPP and pipe bursting methods. About Aegion Corporation Since 1971, Aegion has developed and delivered products and services for aging potable and wastewater infrastructure across the globe. The company’s industry-leading, technology-enabled solutions extend the useful life of pipelines, minimize environmental disturbances, and help prevent corrosion. Aegion proudly serves customers in the municipal, industrial, and transportation markets – from consultation and design to installation and maintenance. Aegion is committed to Stronger. Safer. Infrastructure.®

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