Architecture Engineering & Environmental Services

April 2018

Sectorwatch

Despite the prospect of a comprehensive U.S. infrastructure plan appearing less likely to materialize, consolidation continues amid overall market strength in the AEC industry. Firms continue to look to M&A as a means of accelerating growth and shoring up capabilities.

 

Industry Trends:

  • Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
  • Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
  • Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants