In the late 1990s, Wall Street was keeping its distance from the engineering and construction sector of the energy industry."The industry lost money," said John Rogers, a consultant with D.A. Davidson & Co. Rogers was one of the speakers at Rice University's Engineering & Construction Forum recently held in Houston."This is a project-driven industry, which makes it very volatile," Rogers said. "The industry's focus is on revenue and backlogging is very important."Rogers said he expects a surge of merger and acquisition activity, benefiting the industry as a whole."Companies are buying up smaller companies," Rogers said. "M&A is a way of helping reduce some of the volatility of the industry." He added there are many opportunities for larger E&C companies to buy up smaller firms that are having difficulties in the current market.
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