The HVAC sector is undergoing a significant amount of change. Many industry participants will remember the consolidation wave from a few years back. We are clearly entering another. HVAC (as well as sister industries such as plumbing, refrigeration, etc) is an industry well suited for gains through scale. Although the industry tends to be geographically based, rolling up a series of firms serves to reduce overhead (think insurance costs, HR and health care costs, as well as other back office tasks).

With stress to certain segments of the industry due to the housing market downturn, the rate of acceleration is going to increase. Read more in this quarter's HVAC M&A Update.

 

Welcome to our Transportation, Trucking, and Logistics section.

Clear Rock Transportation M&A

Clear Rock has a strong focus in the transportation sector. We continue to pursue buy-side and sell-side transactions, anticipating solid opportunity industry wide through the remainder of 2008.

The Sector

The transportation sector continues to keep on track this quarter. We continue to see both transactions closing in the sector, as well as a great deal of continued investor interest in a range of "infrastructure" sectors. Trucking and warehousing continues to be in the center of that area. We have begun to see a slight swing here in concert with current unstability in the economy. Some owners are looking to limit risk by cashing out, while investors see opportunity in the uncertainty.

Read more in this quarter's Transportation Update Report.

Recent Clear Rock Articles Posted on Transportation:

• February 7,2008: '07 Transpo Deal Volume Highest Ever
• January 29, 2008 : YRC Announces Restructuring
• December 21, 2007: YRC Acquiring Chinese Logistics Co

Clear Rock likes this market niche. Ripe for consolidation and roll-up and with a series of mini-verticles, we anticipate many transactions in this arena in the next 12-18 months.

The staffing sector continues to see consolidation. The trend to purchase market share - particularly when it comes to very tight, niche areas - continues into the last quarter. Read More...

Recent Clear Rock Articles Posted on Staffing M&A:

• January 16,2008: BBSI Buying First Employment
• January 18: Oasis Aquires Several PEO's

This is probably our number one area in terms of acquiror interest. VAR's are ideally suited for consolidation - either by adding product lines, territory, or vertically. As such, this is where many growth-oriented buyers land.

Green is the name of the game. Every were we look we see big players looking to capitalize on "green" technologies (see GE's "EcoImagination" campaign, or any number of hybrid vehicle platforms). The trend is bound to continue, and we think that the current political cycle will only foster more growth here.

The manufacturing sector continiues to surprise, with durable goods orders holding up well despite all the turmoil in the markets. Companies that have weathered the storm for the past few years seem to be robust and healthy, leaving the M&A market to pick through strong candidates as industry consolidations continue. More in this quarter's report...