With communication being a nonstop component of American life, it’s surprising to note that industry construction decreased slightly this past year. However, with sector advancement beginning to shift, this decrease will turn around by year-end. One example is the announcement that AT&T plans to buy Direct TV for around $49 billion. This will likely change the markets for communications and spur more mergers and acquisitions.
There are also indications that the rate of cell tower installations may decrease due to most major service providers completing their service expansion. However, the report “A Middle Market M&A Update — January 2014” from Chessiecap, a developer of investment banking solutions for growth and technology companies throughout the United States, notes that there is an increasing demand for small cell networks to cover “dead” areas and provide improved service in areas where cell towers are prohibited. Chessiecap estimates that this will be a primary driver for engineering and construction in the sector in the next two years.
