Industrials Practice Overview

Elements of stabilization in the building products market are emerging despite continued headwinds in 2023. Following significant volatility in 2021 and 2022, input price growth has moderated, supply chains have been restructured and project timelines have become more dependable, if not normalized. Despite these positive developments, the building products market continues to face near-term headwinds in the form of multi-decade high interest rates, overlaid with continued labor shortages and elevated prices for most key construction materials. However, the longer-term outlook for residential and nonresidential segments remains robust, with significant underlying demand for new construction and the continued renovation of existing space. Download our 2023 Building Products Report to read our views on the many factors influencing the building products market in the near-term, and why the longer-term outlook for the sector remains attractive.

Over the last 15 years, TM Capital has developed a market-leading Equipment Rental and Dealer sector practice, advising a broad range of privately-owned and financial-backed clients. Since the beginning of 2021, TM Capital has completed 10 M&A transactions in the industry, totaling over $2 billion in aggregate enterprise value – the firm’s significant track record and wide-ranging expertise has enabled us to educate market participants on the attractiveness of the industry and meaningfully expand financial investor interest in the sector. Download TM Capital’s 2023 Equipment Rental & Dealer Report to read our views of the sector, the associated valuation dynamics, macroeconomic backdrop, key M&A trends and broadening investor interest.

The U.S. residential and commercial markets are facing near-term headwinds in the form of supply shortages, interest rate increases and material slowdowns that are slowing the pace of construction and diminishing homebuyer purchasing power. Despite near-term challenges, longer-term demand fundamentals remain unchanged, as the largest homebuying cohort in U.S. history prepares to enter the residential housing market, and the inventory of commercial space is aligning with a shifting modern economy. Download our 2022 Building Products Report to read our views of the many contributing factors to near-term challenges in the market, and why the longer-term outlook for the building products sector remains robust.

The U.S. housing market entered the new decade riding strong demographic and macroeconomic tailwinds despite the underlying challenges of historically low housing inventory and market uncertainty related to the eleven-year recovery.

Though the packaging sector might not be top of mind as an industry most impacted by the digital revolution, the migration of retail away from brick-and-mortar in favor of E-Commerce and the ever expanding complexity of logistics and fulfillment are forcing big changes.

The history of the U.S. Equipment Rental sector is characterized both by growth and evolution. What was once a small, highly fragmented sector primarily consisting of local, independent tool shops, is now a multi-billion-dollar industry with an enhanced ability to address the ever-expanding rental needs of both small contractors and national accounts.