|Last Quarterly Update:||2/13/2017|
|SIC Codes:||7389, 8711|
|NAICS Codes:||54133, 54134|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry apply engineering principles to design and develop systems, structures, processes, and instruments. Major companies include AECOM, Bechtel Group, and Jacobs Engineering (all based in the US), along with Amec Foster Wheeler (UK), Babcock International (UK), Fugro (Netherlands), SNC-Lavalin Group (Canada), and WorleyParsons (Australia).
Construction spending, particularly in emerging markets, drives global demand for engineering services. Annual worldwide spending for engineering services was $930 billion in 2012 and will reach $1.4 trillion by 2020, according to Information Services Group.
The US engineering services industry includes about 60,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $205 billion.
Demand is driven largely by the construction needs of companies and governments and the desire of industrial customers to improve the efficiency of operations. Profitability depends on the ability to accurately predict costs for a project. Small firms, which can effectively compete with larger ones by having expertise in a particular field, are often hired as consultants on larger projects if they have special expertise. Large firms are advantaged in designing and managing large projects. The US industry is fragmented: the 50 largest firms account for about 40% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major engineering services include product and industrial process design, construction design and management, systems engineering, and maintenance and operations. Industrial and manufacturing projects account for about a quarter of industry revenue.
Engineering projects require skills in analysis, ...
Complement this Industry Profile by purchasing a Focus Profile. Engineering Services has one Focus Profiles that can help you better understand this industry:
Would you or your company benefit from having unlimited access to First Research's industry intelligence tools?Learn More About Subscription Options