The U.S. engineering and construction recovery is modest and uneven. Unlike previous broad-based upturns in the cycle, there is no rising tide lifting all boats. Rather, there is tremendous variability across vertical sectors and geographic regions. There are stark contrasts across sectors ranging from full employment and strong demand for specific trades in select markets (e.g., energy and industrial) to tepid demand and severe competition in others (e.g., highway, and education). More glaring is the relative market strength and financial performance among peer specialty contractors operating in similar environments. Many firms are simply marking time and hoping to avoid the fate of a growing list of specialty contractor failures. However, we observe that a number of firms are thriving amidst and in spite of varying market conditions.
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