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 10% of the industry's revenue, along with engineering consulting services (about 10%). Other services include architectural services (roughly 10%), engineering services for commercial, public, and institutional building (roughly 10%), and engineering services for industrial and manufacturing product design (more than 5%).