Industry Report: Industrial Services Q2 2025[Bridgepoint IB]

Key Report Highlights

• Infrastructure Modernization Driving Demand Surge
  Over 70% of U.S. transmission lines are more than 25 years old, with 140,000+ miles needing replacement in the next 30 years. This aging grid, paired with rising energy demand and a declared national energy emergency, is catalyzing investment in critical infrastructure, including power, water, and defense sectors
• Vegetation Management Becomes a Priority Spend
  Due to wildfire risk and stricter federal penalties, vegetation management now represents ~75% of overhead line maintenance budgets, up from 50–55% historically. Utilities are investing $6–$8 billion annually in vegetation services to mitigate risk and meet compliance standards—creating opportunity for regional operators with proven field execution.
• TICC Sector Expands with Supply Chain Shifts
  Tariff-driven supply chain realignments are fueling demand for Testing, Inspection, Certification & Compliance (TICC) services. As companies shift sourcing to new regions, they must ensure U.S. standards compliance, opening room for growth, consolidation, and add-on acquisitions in this fragmented, recession-resilient market.
• Strategic and Private Equity Buyers Stay Active
  Recent deals—such as American Securities acquiring Integrated Global Services and LP First Capital backing REI Utility Services—highlight continued investor appetite for mission-critical service providers. Private equity remains especially interested in businesses supporting recurring revenue models, regulated environments, and infrastructure upgrades
• Middle Market Firms Positioned for Scale and Consolidation
  Bridgepoint notes strong buyer interest in crew-based, service-focused models offering scalability and exposure to long-term infrastructure tailwinds. Middle market firms in engineering, testing, construction, or maintenance with specialization in utility or compliance work are ideal roll-up platforms or strategic bolt-ons for larger industry players

Bridgepoint Investment Banking is a boutique investment bank focused on providing capital raising and M&A advisory services to middle-market companies across North America. Founded in 2012, the firm specializes in sectors including industrials, transportation, healthcare, business services, consumer, and technology.

With over 360 years of combined experience and more than 460 completed transactions totaling over $380 billion, Bridgepoint’s senior team brings deep expertise to every engagement. Headquartered in Omaha with offices in Chicago, Denver, New York, and Lincoln, the firm conducts securities transactions through M&A Securities Group, Inc., member FINRA and SIPC.

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