Engineering Services

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 46,000 engineering services firms in the US provide evaluation, investigation, planning, design, and development services related to utilities, structures, buildings, machines, equipment, processes, or systems. Specialty areas include civil, mechanical, industrial, electrical, electronics, computer hardware, aerospace, environmental, chemical, health and safety, materials, petroleum, nuclear, and biomedical engineering. Firms work on specific projects for clients and must be adept at project planning and management.

Dependence on Highly Skilled Personnel

Engineering service firms rely on a highly-educated, professional workforce.


Work site hazards and the complexity and scale of engineering projects expose engineering services firms to liability.

Industry size & Structure

A typical engineering services firm operates out of a single location, employs 25 workers and generates around 6.6 million in annual revenue.

    • The engineering services industry consists of about 46,000 companies that employ over 1 million workers and generate $303 billion annually.
    • Customer industries include general building, transportation, petroleum, power, hazardous waste, water, sewer/waste, industrial, and manufacturing.
    • The engineering services industry is fragmented: The 50 largest firms account for only about 35% of industry revenue.
    • Large companies include Fluor, Bechtel, and AECOM.
                                  Industry Forecast
                                  Engineering Services Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  May 28, 2024 - Wastewater Funding Falls Short
                                  • Maintaining existing wastewater, stormwater, and other US water infrastructure over the next 20 years is expected to cost more than $630 billion, according to a recent report given to Congress by the EPA. The EPA’s Clean Watersheds Needs Survey is based on reports by states and territories projecting the costs to maintain public wastewater facilities, stormwater infrastructure, and decentralized water treatment systems, such as septic tanks. The Infrastructure Investment and Jobs Act (IIJA) provides some funding for wastewater upgrades, but some infrastructure experts suggest the IIJA doesn’t come close to meeting the future funding needs of US wastewater systems.
                                  • Federal investigations into the collapse of Baltimore’s Francis Scott Key Bridge after it was struck by a containership hope to discover the cause of the accident but also how infrastructure could be better protected from similar events. In speaking at a hearing by the US House Committee on Transportation and Infrastructure about the federal response to the disaster, US Coast Guard Vice Admiral Peter Gautier said the ever-increasing size of containerships is “placing greater demands on marine transportation infrastructure that may not have kept pace with increased risks that these vessels may pose.” In the wake if the collapse of the Key Bridge, the National Transportation and Safety Board (NTSB) is examining pier-protection upgrades on other bridges that suffered similar collisions but didn’t collapse.
                                  • The total value of nonbuilding construction starts increased 4% in April from March, according to Dodge Construction Network. The April gain was led by environmental and public works starts, which were up 31% over March. Highway and bridge stars saw 8% month-over-month growth in April, while miscellaneous nonbuilding starts increased 20%. Utility and natural gas project starts declined 34% in April. Year-to-date, nonbuilding starts were up 14% compared to the first four months of 2023.
                                  • North American construction and engineering spending in 2024 is expected to grow by about 5%, according to FMI’s second-quarter 2024 North American Engineering and Construction Outlook. Slower spending for residential and commercial construction segments will limit overall construction and engineering spending. Construction subsectors that are expected to see double-digit growth in 2024 include manufacturing (up 19% in 2024 over 2023), lodging (+14%), public safety (+12%), highway and street (+12%), sewage and waste disposal (+10%), and transportation (+10%). Other pockets of steady growth include conservation and development, power, education, water supply, and healthcare. High interest rates continue to put downward pressure on residential and commercial projects. Single-family construction spending is forecast to be flat in 2024, while multifamily is expected to decline 8% after projects in development peaked at 1 million units in mid-2023. Commercial is the only nonresidential construction segment that is projected to post negative growth in 2024, down 2% compared to 2023.
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