Engineering Services Industry Overview
Excerpt from Engineering Services Report
Companies in this industry apply engineering principles to design and develop structures, systems, and processes. Major companies include AECOM, Bechtel Group, and Jacobs Engineering (all based in the US), along with Abengoa (Spain), Babcock International (UK), SNC-Lavalin Group (Canada), Wood Group (UK), and WorleyParsons (Australia).
Success in the engineering services industry requires efficient bidding and cost controls. Customers are more knowledgeable about costs and are breaking up projects into smaller elements -- potentially reducing efficiencies of scale -- and are expecting contractors to take on the bulk of cost risk, according to PricewaterhouseCoopers. Reduced government and commercial spending on infrastructure and construction projects during times of economic or political discord can diminish bidding opportunities.
Products, Operations & Technology
Major engineering services include construction design and management, industrial process design, systems engineering, and maintenance and operations. Industrial and manufacturing projects account for about a quarter of industry revenue, followed by transportation, power generation, and commercial building projects (each around 10% revenue). Other fields include municipal utility, residential building, telecommunications, waste management, and power transmission projects.