This article was originally distributed via PRWeb. PRWeb, WorldNow and this Site make no warranties or representations in connection therewith.
SOURCE: IBISWorld Inc.
Energy and mining clients have increasingly requested industry services to expand operations or improve efficiency to meet renewed demand. For these reasons, industry research firm IBISWorld has added a report on the Engineering Services industry to its growing industry report collection.
Los Angeles, CA (PRWEB) March 04, 2013
The Engineering Services industry extends across a wide range of downstream businesses, with the industry serving the industrial, chemical, mining and infrastructure markets. During the past five years, industry revenue is expected to have risen at an annualized rate of 0.9% to $25.0 billion, as the industry has worked to rebound from a postrecession decline in 2009. Industry operators have benefited from the strengthening value of oil and mined commodities in recent years, says IBISWorld industry analyst Austen Sherman. Energy and mining clients have increasingly requested industry services to expand operations or improve efficiency to meet renewed demand. These strong downstream markets and continued federal spending on infrastructure are anticipated to boost revenue an additional 2.7% in 2013.
The industry has experienced a period of consolidation during the past five years, with the number of industry enterprises contracting at an average annual rate of 0.1% to 24,804 companies. Large-scale operators have taken advantage of generally poor economic conditions to purchase small, niche competitors, continues Sherman. For example, SNC-Lavalin, the industry's largest operators, acquired six Canadian firms in 2011 alone. Industry consolidation, combined with rising revenue and improved efficiency, has resulted in a recent resurgence in profit margins. The Engineering Services industry is characterized by many small establishments that typically operate in a regional market or specialize in niche activities. Consequently, the industry has a low level of concentration. Furthermore, sole proprietors largely make up the industry. The largest industry player is SNC-Lavalin. Despite consolidation, concentration in the industry is not expected to change dramatically over the next five years as more firms enter the industry as business conditions improve.
Industry operators will likely continue to benefit from strong investment in nonresidential construction during the next five years. Although federal funding for infrastructure is projected to decline, private investment should improve along with the broader economy. Furthermore, demand from power generation firms 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. For more information, visit IBISWorld’s Engineering Services in Canada industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Establishments in this 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
About IBISWorld Inc.
Recognized 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 US and Canadian 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.ca or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/3/prweb10488893.htm