Engineering Services Industry Overview

Excerpt from Engineering Services Report

Companies in this industry apply engineering principles to design and develop systems, structures, processes, and instruments. Major companies include Jacobs Engineering and URS (both based in the US), AMEC (UK), Fugro (Netherlands), SNC-Lavalin Group (Canada), and WorleyParsons (Australia).

Competitive Landscape

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 industry is fragmented: the 50 largest firms account for about 40 percent of industry revenue.

Products, Operations & Technology

Major engineering services include product and industrial process design, construction design and management, systems engineering, and maintenance and operations. Companies in this industry apply engineering principles to design, develop, and use machines, materials, structures, and processes. Engineering projects require skills in analysis, design, project management, operations, or all four. Most firms specialize in a particular type of engineering; while companies that provide engineering services to the construction industry tend to be among the biggest in terms of revenue, engineering companies serve other industries including automotive, aerospace, petroleum, and technology. Most engineering work is per project, such as designing and constructing a highway or formulating an environmental plan for a wetlands area.