New York, NY (PRWEB) March 24, 2014
Engineering services extend across a wide range of downstream businesses, with the industry serving the construction, oil and gas, mining and power markets. Over the past five years, the industry has been successful despite difficult economic conditions. Recessionary conditions in 2009 caused the industry to contract; however, operators were quick to recover as the value of private nonresidential construction picked up due to rising commodity prices, which precipitated new heavy facility construction. Additionally, energy and mining clients have increasingly requested industry services to expand operations or improve efficiency to meet renewed demand. As a result, industry revenue is projected to grow at an average annual rate of 4.4% to $29.5 billion over the five years to 2014, including growth of 3.2% in 2014 alone.
The industry has experienced a period of consolidation during the past five years as large companies pursued acquisitions. Large-scale operators have taken advantage of generally poor economic conditions to purchase small, niche competitors. For example, SNC-Lavalin, the industry's largest operators, acquired six Canadian companies in 2011 alone. Industry consolidation, combined with rising revenue and improved efficiency, has resulted in a recent resurgence in profit margins.
Industry operators will likely continue to benefit from strong investment in nonresidential construction during the next five years. The value of nonresidential construction is projected to increase at an annualized rate of 3.4% through 2019. Although federal funding for infrastructure is projected to decline, private investment should improve along with the broader economy. Furthermore, demand from power generation companies should remain strong, as Canada has targeted renewable energy sources to account for 90.0% of total energy by 2020. As a result, industry revenue is anticipated to rise during the five years to 2019.
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IBISWorld industry Report Key Topics
Establishments in the Engineering Services in Canada industry apply the physical laws and principles of engineering in the design, development and use of machines, materials, instruments, structures, processes and systems. Industry services involve providing advice; preparing plans, designs and feasibility studies; providing technical services during the construction or installation phase; inspecting and evaluating engineering projects; and other related services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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