While the first half of 2020 was unprecedented, the second half was marked by a strong recovery in industrial services, share prices and mergers and acquisitions. In December, stock-market values returned to near-pre-COVID peaks. With interest-rate cuts by the Federal Reserve reducing the cost of debt, and with the new administration proposing massive infrastructure spending in 2021 and beyond, these firms are expected to experience very strong growth for industrial-services firms, whether it be new construction, maintenance, repair, maintenance, or upgrade and modification projects.
Points to remember:
- Industrial services recovered significantly after the pandemic.
- Strong rebound in equity values, mergers and acquisitions in the second half of 2020, ensuring confidence in the sector and some final markets served.
- The infrastructure bill, significant federal spending, and support for state budgets will be key factors in 2021 and beyond, stimulating sustained activity.