Stronger industry growth will be supported by work in infrastructure markets
London, United Kingdom (PRWEB) August 07, 2012
Engineering is the professional discipline that applies scientific knowledge to the design of structures, products and industrial processes, and to the management of the natural and built environment. Since the mid-2000s, the Consultant Engineering Servi ces industry has encountered widely divergent trends across the downstream industrial and construction markets, principally due to the recessionary economic growth conditions. According to IBISWorld industry analyst Anthony Kelly, “downward trends in UK industrial production and capital expenditure have adversely affected demand for engineering services in the design, installation and operation of industrial processes and products”. Similarly, demand for engineering design and construction management services has collapsed in the UK building markets, but consulting engineers have been buoyed by stimulatory spending on water supply, roads and power generation projects.
The industry is forecast to generate revenue totalling £43.7 billion in 2012-13, unchanged from the previous year. Revenue is expected to grow by an annualised 0.7% over the five years through 2012-13. The industry has a high exposure to international trade with export earnings contributing about 12.5% of industry revenue (£5.45 billion) and import penetration accounting for 11.9% of domestic demand (£5.15 billion). The industry is forecast to return to cyclical revenue growth over the next five years to 2017-18. Kelly adds, “revenue will grow at a faster pace than GDP due to the continued expansion in the infrastructure markets and the cyclical recovery of demand for engineering design services in the industrial process and commercial building markets”.
The Consultant Engineering Services industry has a low market share concentration with the four largest consulting firms together contributing less than 10% of annual industry revenue. Engineering consultancies are generally small-scale firms that confine their operations to a narrow regional market or area of specialisation. Major companies include Balfour Beatty, WS Atkins, Mott McDonald Group, Arup Associates and WSP Group.
For more information on the Consultant Engineering Services industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry comprises firms engaged in applying physical laws and principles of engineering in the design, development and use of machines, materials, instruments, structures, processes and systems. This includes design activities for industrial process and production; the provision of geophysical and other surveying and mapping services; and the engineering design, procurement and consulting activities for building and infrastructure construction projects.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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