INDUSTRIAL AND CONSTRUCTION SERVICES | Q3 2025 Industrial and construction services continue to hold steady, even as higher borrowing costs and weaker residential and office markets create headwinds across the broader economy. Most industrial and commercial service providers are reporting flat to modest growth, with nonresidential construction activity, particularly infrastructure, power generation, and data centers, supporting the sector through mid-2025. Infrastructure-focused contractors, such as transportation, utilities, power, and water systems, remain well-positioned, benefitting from sustained public funding and large- scale private investment. This trend is expected to extend into the coming quarters as legislation-driven spending, reshoring initiatives, and power infrastructure expansion maintain momentum. Uncertainty remains around long-term policy direction and potential trade impacts on material costs, but so far these factors have not materially slowed project starts or shifted near-term planning. Many construction mangers report high pipeline levels but slowed or delayed project timelines causing actual work to push out.
M&A CONDITIONS | Q3 2025 Overall M&A activity in construction services remains steady but selective; higher borrowing costs continue to limit heavily leveraged transactions, favoring strategic buyers and well-capitalized platforms. Multiples for specialty contractors, including scaffolding and access services, Infrastructure spending and large-scale industrial projects such as data centers, energy, and utilities are driving buyer demand for scaffolding and specialty service providers with recurring rental and maintenance revenue. Private equity interest in construction rental and industrial soft craft assets seems to be increasing, with several marquee transactions either recently completed or in process. are holding firm, particularly in infrastructure-driven markets.
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