Infrastructure & Outsourced Services: Momentum Across Key Segments

North America’s vast network of critical utility and telecom infrastructure is aging, becoming less effective, and requiring more servicing due to fatigue, component- and weather-related failures, and recurring break-fix events. The many risks to this infrastructure are constant, bolstering the need for reliable inspection services that provide innovative solutions and consistent care across vital utility and telecom assets. 

Case in point: The need for grid hardening and resiliency is steadily increasing, driven by the large amount of transmission and distribution infrastructure at or near the end of its useful life, the introduction of new renewable generation sources to the grid, and a rise in weather-related events. Because of this, demand for asset health services is strong and growing, and the sector should see double-digit growth rates over the next several years. 

Osmose Utilities Services is a leading infrastructure services company providing highly recurring inspection, treatment, restoration, and proactive resiliency services for electric utility and telecom assets. Osmose leverages its national footprint, large volume of collected data, and sophisticated analytical tools to improve asset health and extend longevity for over 150 million wood distribution poles and 2 million steel transmission towers that make up the U.S. electrical and telecom grid. Osmose also has an international footprint, offering essential solutions for infrastructure assets in Canada, Australia, New Zealand, the United Kingdom, and Ireland.

Powerful tailwinds continue to drive the growth, upkeep, and improvement of U.S. infrastructure. For example, the U.S. recently rolled out a major infrastructure bill in 2022, creating more jobs for businesses that plan, design, and work on upgraded infrastructure. At the same time, the ongoing energy transition and telecom’s expansion of 5G are bolstering the need for companies that specialize in building innovative infrastructure related to these areas.

Due to these themes, demand is rising for a large ecosystem of contractor-based businesses that support the maintenance and optimization of critical infrastructure. A greater need for safety at infrastructure upgrade and repair worksites, for instance, is sparking higher investor interest in flagging and traffic control.

AWP Safety is a top work zone safety partner in the U.S., protecting those who build infrastructure in our local communities. Its capabilities range from work zone flagging to design and engineering for transportation management plans, equipment sales, rentals, and 24/7 support. Thanks to its scale, resources, advanced technology, and comprehensive service offering, AWP takes full advantage of the rising need for traffic control safety among a growing customer base across utility, broadband, and transportation infrastructure.

Transmission and distribution (T&D) infrastructure continues to expand across the U.S. From 2007 to 2020, for example, T&D investments rose from approximately $39 billion to $90 billion, an estimated 130% jump at a CAGR of around 7%.¹

This increasing total is fueling steady and long-term funding across several essential, non-discretionary utility services. T&D infrastructure relies heavily on these services to protect, maintain, and enhance its assets while staying in compliance with evolving regulations. Due to their dependable demand, substantial downside protection, and reliable recurring revenue, utility services companies serving T&D infrastructure are poised to maintain their growth trajectories through economic cycles.

Riggs Distler is a leader within power and utility services. As one of the largest utility contractors in the Northeast and Mid-Atlantic regions of the U.S., the company has established itself as a trusted provider of network and infrastructure maintenance, repair, and upgrade solutions. Riggs Distler focuses on critical electric and gas services for clients in the power, industrial, and utility industries, while sitting at the forefront of several energy transition trends with capabilities in smart meters, energy storage, EV charging infrastructure, and renewables.