Boston, MA – Capstone Headwaters released its Rock Products industry update today, reporting that Construction activity has demonstrated resilience amid substantial COVID-induced headwinds, providing enhanced visibility for upstream aggregates providers. Following a 12% increase in construction starts in October led by the Nonbuilding segment, November activity modestly fell 2%, according to Dodge Data & Analytics. However, industry optimism has been supported by the steady recovery in the Nonresidential sector, which registered a 19% increase in starts, buoyed by a 27% rise in the Commercial sector. Employment in the Construction industry has also continued to improve despite a slowing of project backlog in November.
“2021 will be an exciting year as construction leads the way in a rebounding economy,” said Managing Director Darin Good.
M&A activity slowed significantly during the height of the pandemic, with Q2 volume falling 80%. However, as industry participants have regained financial footing, transaction volume has rebounded with year-to-date (YTD) Q4 volume exceeding prior year levels with 20 transactions announced or completed.
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Capstone Headwaters is one of the largest and most active independent investment banking firms in the United States. The firm has a rich, 20-year history of achieving extraordinary results for middle market entrepreneurs, business owners, investors, and creditors. Capstone offers a fully integrated suite of corporate finance services, including M&A, debt and equity placement, corporate restructuring, valuation and fairness opinions, financial advisory, and ESOP advisory services. Headquartered in Boston, the firm has 175+ professionals across 16 offices in the U.S., with and an international presence including over 450 professionals in 40 countries. With 16 dedicated industry groups, the firm delivers sector-specific expertise through large, cross-functional teams on a global basis. For more information, visit www.capstoneheadwaters.com.
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