Roadway infrastructure is the backbone of the economy, critical to the movement of a wide range of goods and travelers. A large ecosystem of products and services is essential to the function and safety of this vast network of roads and related assets, fueling steady demand and M&A activity through the value chain.

Below, senior professionals in our Energy, Power & Infrastructure Group and Industrials Group share what’s driving investor interest in roadway infrastructure and recent clients that illustrate the sector’s growth potential.

Roadway Upgrades, Efficiency, and Safety Drive Demand

Across America’s aging and increasingly complex roadway network, a variety of assets require regular repairs, updates, and improvements. Meanwhile, the latest U.S. infrastructure bill continues to fund more jobs for businesses that plan, design, and work on our roadways.

Combined, these themes are creating nondiscretionary, long-term demand for companies that maintain and optimize roadway infrastructure while ensuring the safety of pedestrians and vehicles.

“The need to upgrade the nation’s roads, enhance driver safety, and protect work zones is sparking higher demand and investor interest in a host of businesses,” says Matt White, a managing director in our Energy, Power & Infrastructure Group. “Areas with strong appeal include striping and roadway maintenance, flagging and traffic control, transportation engineering, and intelligent transportation systems (ITS).”

While all these categories are attractive to investors, flagging and traffic control presents an especially unique opportunity to gain exposure to the strong and sustained tailwinds powering utility and electric infrastructure growth. ITS, meanwhile, offers the potential to participate in roadway infrastructure’s expansion through both products and services.

“Leading companies across these areas will continue to capitalize on unmet demand, take share, and drive outsized growth,” says Patrick Fitzsimmons, a director in our Energy, Power & Infrastructure Group.

Multiple Roads to Growth

Powerful trends continue to drive maintenance, upgrades, and growth across the country’s roadway network, increasing investor interest in services and products throughout the value chain.

“Harris Williams has played a meaningful role in the sector’s M&A momentum,” says White. “Going forward, there will be substantial value-creation potential for platforms that can meet demand and build scale as roadway infrastructure is revitalized, strengthened, and expanded.”

To discuss M&A opportunities within roadway infrastructure, please contact our senior professionals.