Profit margins are expected to fall from the highs of the past five years, but will remain above the sector average.
Melbourne, Australia (PRWEB) March 10, 2014
Engineering is the professional discipline that applies scientific knowledge to design structures, products and industrial processes aimed at servicing the economy and society. As governments and private corporations outsource their engineering departments, industry consultants have become indispensable and expanded their reach across the globe through strategic alliances and joint ventures. The Engineering Consultancy Services industry in Australia is expected to generate revenue totalling $37.0 billion in 2013-14, down 2.8% from the previous year. Over the five years through 2013-14, revenue is expected to grow by an annualised 0.3%, corresponding with a slowdown in investment trends in the downstream resources, infrastructure and environmental markets. According to IBISWorld industry analyst Sebastian Chia, “The industry's expansion has been accompanied by a trend towards consolidation and strategic alliances between the leading consulting firms.” This has allowed firms to compete for tender based on wide knowledge bases.
The industry is highly labour-intensive, using a high knowledge component. Direct employment is expected to total 131,833 people in 50,159 establishments in 2013-14. The industry workforce includes a substantial subcontracted and agency-based component, which has swelled over the past five years. This is consistent with the need for a flexible workforce to deal with large spikes in output normally associated with large-scale infrastructure projects. The industry is characterised by low concentration of ownership. Significant operators include WorleyParsons Limited and Bechtel Australia Proprietary Limited.
Engineering Consultancy Services industry revenue is forecast to continue to decline over the next two years due to a winding back of investment into the non-building infrastructure markets, notably mining developments. Profit margins are expected to fall from the highs of the past five years, but will remain above the sector average. “This will provide opportunities for firms that service the commercial and industrial building markets, with investment expected to rise over the coming five years,” says Chia. This will be driven by the expectation of substantial government investment into transport infrastructure and continued investment into the National Broadband Network and large-scale gas and oil developments.
For more information, visit IBISWorld’s Engineering Consultancy Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry supply engineering consultancy services and, to a lesser extent, quantity-surveying services. Primary activities include the design and management of construction and engineering infrastructure projects, environmental projects and industrial processes and equipment. Assignments may involve provision of advice, feasibility studies, plans and designs, technical and management services for construction and evaluation of environmental projects.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.