Industry Analysis & Industry Trends
The Corrosion Protection Engineering industry is busy managing the corrosion of the aging US infrastructure and protecting new projects from its harmful effects. Although the recession caused demand from key construction, energy and transportation markets to slow as they reduced investments and scaled back production, a renewed public federal government focus on upgrading America's aging infrastructure and recovering public and private levels of investment into downstream energy, construction and transportation industries will underpin growth. Industry firms will benefit from increasing demand by downstream industries to implement new materials and develop plans to economically reduce corrosion expenses and extend the life of costly new structures and equipment.... purchase to read more
Industry Report - Industry Investment Chapter
The Corrosion Protecting Engineering Services has a low level of capital intensity, largely due to the labor-based nature of its operations. Corrosion engineers undergo high levels of training and education and typically receive high salaries; the average industry wage is estimated to be about $83,500 in 2012. As such, firms' capital expenditures are heavily outweighed by their labor costs. IBISWorld estimates that industry companies typically spend $0.05 in capital investment for every $1.00 spent on wages. Depreciation expenses are estimated to account for only 2.5% of industry revenue, whereas wages are the largest cost segment for industry firms and absorb almost half of revenue.
In 2007, the industry's capital intensity was slightly lower... purchase to read more