Surveying and Mapping 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 7,000 surveying and mapping service providers collect data to determine property boundaries and create maps of the Earth’s surface, including the sea floor. The processes of surveying and mapping involve measurement, documentation, and representation of the Earth’s features. Surveying is used for land planning and development, construction, infrastructure planning, real estate transactions, environmental management, navigation, and geographical analysis. Determining the boundaries, elevation, and topography of an area is critical in construction work.
Dependence on Construction and Real Estate Industries and Economic Conditions
Demand for surveying and mapping services is driven primarily by the construction and real estate industries, which are cyclical and affected by changes in economic conditions.
Drones and UAVs
The use of aerial drones and uncrewed or unmanned aerial vehicles (UAV) is growing as surveyors look for ways to cut costs and operate more efficiently.
Industry size & Structure
The average surveying and mapping company operates out of a single location, employs about seven workers, and generates about $1 million annually.
- The surveying and mapping industry consists of over 7,000 firms that employ over 53,000 workers and generate over $7 billion annually.
- The industry is fragmented with the top 50 companies accounting for about 33% of industry revenue.
- Firms that generate less than $1 million account for over 70% of the industry. Firms that generate $5 million or more account for more than 45% of the industry revenue.
- Surveying and mapping firms are primarily local businesses; most companies are small, independent operators that serve a limited geographical market. Larger firms have a regional or multi-state presence. Major engineering and construction companies, like Dewberry and Stantec, provide surveying and mapping as part of their comprehensive services.
- Independent surveying firms may consist of a single licensed land surveyor and an assistant. Mid-size firms employ teams of five to 50 workers overseen by one to two licensed surveyors and may offer related professional services. The largest firms manage 50 to 1,000 employees and work in multiple states.
Industry Forecast
Surveying and Mapping Services Industry Growth
Recent Developments
Aug 16, 2024 - Multifamily Developer Confidence Slips
- Multifamily developers’ confidence declined in the second quarter of 2024, according to the National Association of Home Builders’ (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) fell twelve points in Q2 2024 to 44 compared to the second quarter of 2023. The Multifamily Occupancy Index decreased by eight points to 81 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. Multifamily developers’ headwinds include a tight lending environment, higher borrowing costs, and difficulties with getting projects approved. However, increasing signs of a weakening US economy may prompt the Federal Reserve to begin cutting interest rates before the end of the year.
- North American construction and engineering spending in 2024 is expected to grow by about 6%, according to FMI’s third-quarter 2024 North American Engineering and Construction Outlook. With growth of 28%, public safety will lead 2024 nonresidential building construction, followed by manufacturing (21%), educational (7%), and religious (7%). Commercial construction spending is expected to decline 7% in 2024 amid weaker demand for warehousing space, high interest rates, and tighter lending standards. Lodging construction spending is forecast to drop 6%, and stubbornly high office vacancies will continue to weigh on new office construction, which is projected to see flat spending in 2024. Despite high interest rates, single-family construction spending is forecast to rise 7% in 2024 as homebuilders reduce home sizes to improve affordability. Spending for multifamily is expected to decline by 1% in 2024 after projects in development peaked at 1 million units in mid-2023. At 9% growth, water supply will lead 2024 growth in the infrastructure sector, followed by highway and street (+8%), power (+8%), and sewage and waste disposal (+8%).
- The Dodge Momentum Index (DMI) increased 7.9% in July 2024 to 173.9 (2000=100), up from the revised June reading of 200.5. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. On a monthly basis, the commercial planning component improved by 6.8%, led by data centers and retail. Healthcare helped drive an 11.1% increase in institutional planning. Dodge’s associate director of forecasting, Sarah Martin, said, “While data centers have had an outsized influence on nonresidential planning activity in recent months, more momentum is building across many other major sectors and diversifying the story behind July’s growth. The potential Fed rate cut in September is becoming increasingly more likely, alongside slower inflation and weaker labor market conditions. This is likely driving owners and developers to remain optimistic about 2025 market conditions and pushing more projects into the planning queue.”
- Home builder confidence in the single-family market dropped in August to the lowest level since December 2023 amid high mortgage rates and home prices, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), fell two points to 39 in August 2024. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The HMI survey also showed that 33% of builders have reduced home prices to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged for the fourteenth consecutive month.
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