Industry Analysis & Industry Trends
After a period of subdued economic growth due to dwindling backlogs and declining demand, engineering companies are set to rebound. The economic recovery will boost demand for construction projects, which will require the industry's services. Profitability is forecast to improve slightly, particularly among large operators that provide high-margin services like construction management. Industry profit margins should also benefit from the rising use of computer-aided design systems that provide cost-effective project assessment... purchase to read more
Industry Report - Industry Investment Chapter
In 2013, IBISWorld estimates that the average firm in the industry will spend $0.04 on capital investment for every $1.00 spend on wages and labor. The industry primarily provides professional engineering design, assessment and management services. Therefore, the industry is highly labor intensive, leading to a low level of capital intensity. Industry capital expenditure represents about 2.0% of annual industry revenue. Capital expenditures primarily include computer hardware and software technology, which is a requirement for even the smallest operators in the industry.
Over the past decade, the adoption of new technologies, notably computer-aided design (CAD) facilities, has significantly enhanced labor productivity... purchase to read more