Engineering Services

Industry Profile Report

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

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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 22 workers and generates just over $5 million in annual revenue.

    • The engineering services industry consists of about 46,000 companies that employ over 1 million workers and generate $241 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

                                  Coronavirus Update

                                  Apr 11, 2022 - Contractor Vaccine Mandates in Legal Limbo
                                  • On September 9, the Biden Administration announced that all federal workers and on-site government contractors would need to be vaccinated. The requirements were to be implemented through a temporary standard issued by OSHA. Several Republican-led states, contractors, and business organizations filed lawsuits to challenge the Biden administration’s vaccine mandate for federal contractors. On December 7, a federal judge in Georgia issued a nationwide injunction that effectively blocked enforcement of the mandate. The US government appealed that decision, and the 11th circuit heard oral arguments in April. Legal experts don’t expect a decision before late April, and some suggest the matter is likely to come before the Supreme Court. Some government contracting industry watchers suggested that contractors may want to continue with their vaccine requirement implementation plans in the event that the mandate for contractors ultimately is upheld in court.
                                  • Engineering firms with contracts for state infrastructure projects are being told to repay what they say they thought were forgivable federal Paycheck Protection Program (PPP) loans taken during the coronavirus pandemic. The federal agency that oversees many of the contracts says that repayment is necessary to prevent firms from being compensated twice for the same work. Firms with contracts in which expenses are covered to an agreed-upon limit with additional payment for profit must pay back the loans if they were used to pay for contractually covered costs
                                  • The Federal Reserve expects economic growth, as measured by GDP, to remain above trend through at least 2023, at 3.3% in 2022 and 2.2% in 2023, compared to estimated long-term potential growth of just 1.8%.
                                  • Small-business owners who received taxpayer-subsidized Paycheck Protection Program (PPP) loans of $150,000 or less during the coronavirus pandemic can seek forgiveness directly with the government through an online portal that was opened on August 4, allowing them to sidestep the private financial institutions that ran most aspects of the program for 14 months. As of April 3, the Small Business Administration had forgiven more than 85% of the $789 billion in PPP loans issued since the program was launched in 2020. About 86% of all PPP loan recipients have submitted forgiveness applications.
                                  • Total construction spending increased 0.5% in value month over month on an adjusted basis and 11% in value year over year on an unadjusted basis in February 2022, according to the US Census Bureau. Residential construction spending increased 1.1% month over month and 16% year over year in February. Nonresidential construction spending decreased 0.1% month over month but rose 6.6% year over year in February.
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