Architectural & Engineering Services

Architectural & Engineering Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry plan and design residential and nonresidential buildings and structures as well as apply engineering principles to design and develop systems and structures. Major companies include AECOM, HDR, Jacobs, and KBR (all based in the US), as well as Fugro (The Netherlands), Nikken Sekkei (Japan), Wood PLC (the UK), and Worley (Australia).

COMPETITIVE LANDSCAPE

Demand for architectural and engineering services is driven by residential and commercial construction activity, as well as corporate and government spending. Profitability depends on a company's ability to attract a constant flow of work through contracts, as well as the ability to accurately predict costs for projects. Small firms can effectively compete with larger ones by offering expertise in a particular field. Large firms are better equipped to design and manage large projects in diverse geographic areas. The US industry is fragmented: the 50 largest firms account for about 30% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include engineering services for transportation projects, which account for more than 20% of the industry's revenue, along with engineering consulting services (more than 20%). Other services include architectural services (more than 15%), engineering services for commercial, public, and institutional building (more than 15%), engineering services for industrial and manufacturing product design (about 15%) and for engineering services for petroleum and petrochemical plant.