Boston – Capstone Headwaters has released its latest Construction Services Industry update, reporting that COVID-19 induced headwinds through Q2 2020 manifested in project delays and cancellations, supply chain challenges, and workforce capacity restrictions, contributing to substantial declines in construction spending.
However, industry demand has rebounded in recent months, with construction notching three consecutive months of gains, rising 1.4% in August, according to the U.S. Census Bureau.
“The worst is behind us and we believe there is a significant opportunity for growth across most end-markets for the next several years,” said managing director Darin Good.
Merger and acquisition activity in year-to-date 2020 has trailed the prior year by 29%, largely due to the significant decline in Q2 transaction volume. However, consolidation has begun to show signs of accelerating, with Q3 recording the highest quarterly deal count of the year with 97 transactions.