Industry Analysis & Industry Trends
The Engineering Services industry has expanded overall in the five years to 2016. In the beginning of the period, increased public spending on transportation infrastructure boosted demand for related industry services; however, revenue growth has been inconsistent because government spending slowed in 2013 and 2014. Investor fears of high household debt and a potential real estate bubble have also tempered investment in commercial and industrial construction projects, upon which engineering services operators rely. The energy sector will consequently increase in importance to the industry over the next five years... purchase to read more
Industry Report - Industry Investment Chapter
The Engineering Services industry has a low level of capital intensity. The industry is service-based and primarily provides design, assessment and management services. Consequently, the industry is highly labour intensive, with direct wages accounting for 54.2% of revenue, which includes subcontracting payments. Conversely, depreciation is estimated to represent only 1.8% of revenue. As a result, IBISWorld estimates that industry operators will spend $0.03 on equipment for every $1.00 spent on wages in 2016.
Capital expenditure primarily includes computer hardware and software technology, which have become a requirement for even the smallest industry operators. Ove.. purchase to read more