The Business began in 1975 under the name of Cleveland Inspection Services. In 2005, ENGlobal purchased Cleveland Inspection Services and allowed them to continue under the same name until 2008, when it was changed to ENGlobal Inspection Services. On January 1, 2013 Furmanite purchased the business and changed the name to Furmanite America Inc. d/b/a Furmanite Inspection Services. On March 01, 2016, the team announced the successful completion of its $260 million merger with Furmanite Corporation. December 19, 2016 Frontier Integrity Solutions was spun off from Team Furmanite to allow for continued growth as an elite standalone inspection services provider. This transaction was an essential move for the business to allow for the development of vertical service solutions and financial growth not offered before!
ATTRACTIVE INDUSTRY FUNDAMENTALS
FIS is well positioned to capitalize on favorable industry growth dynamics for new pipeline build, integrity management required for existing pipelines and heightened regulatory scrutiny resulting in increased need for inspection services.
Despite the market downturn in 2015, the United States has unlocked new energy supplies given continued investment and innovation. In order to reach its full energy potential, significant infrastructure investment is still needed with estimates ranging from $470 to $620 billion in natural gas, crude oil and natural gas liquids infrastructure by 2035 across North America. The recent downturn is not expected to diminish the ultimate need for this infrastructure.
SERVICE OFFERINGS ADDRESSES CRITICAL NEEDS
In addition to being good corporate citizens, threat of heavy fines and reputational risk resulting from an accident incentivizes pipeline operators to consider safety every step of the way. They purchase top-quality materials, address safety and security issues when planning and siting a pipeline, and ensure quality during construction. Once a pipeline is in place, they work to prevent releases by evaluating, inspecting and maintaining pipelines through integrity management programs.
In 2002, Congress directed PHMSA to develop a more comprehensive inspection program targeted at High Consequence Areas (HCA), which generally means densely populated areas or areas with many structures. In March 2016, PHMSA proposed new guidelines to expand the scope of safety requirements. This is expected to increase meaningfully resources that need to be deployed for integrity management. Data Cited By: INGAA
LONG-TERM RELATIONSHIPS WITH BLUE-CHIP CUSTOMERS
FIS’ proximity to major clients in the midstream space enhances its ability to build and sustain relationships, one of the most important determinants in awarding projects. FIS counts among its clients many of the largest pipeline operators. FIS’ customers are geographically dispersed and operate in most major basins across the US.