Built to last: An increase in public infrastructure investment will help recover industry revenue

The Engineering Services industry in Canada is expected to recover after a couple of significant slumps over the past five years. This industry provides advice, design, feasibility studies and technical services for a variety of projects that require deep understanding of the principals of engineering, such as construction. The rising value of residential and nonresidential construction over the two years to 2014 helped drive investment in new facilities and housing projects that require significant engineering design, planning and study. Revenue experienced strong growth in these years as increased corporate profit precipitated greater investment in nonresidential construction...read more.

Industry Statistics & Market Size
Revenue
$30bn
Annual Growth 13-18
-2.5%
Forecast Growth 18-23
Profit
Employment
122,493
Businesses
29,266

Industry Threats & Opportunities

  • Public investment in infrastructure will bolster engineering spending on new roads and highways
  • Historically, all levels of the Canadian government have underinvested in infrastructure
  • The trend in government spending is shifting back toward supporting public investment projects
  • Industry Report - Industry Investment Chapter

    The Engineering Services industry in Canada 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 43.4% of revenue and depreciation is estimated to represent only 1.8% of revenue. As a result, IBISWorld estimates that industry operators will spend $0.04 on capital for every $1.00 spent on wages in 2018.Capital expenditure primarily includes computer hardware and software technology, which have become a requirement for even the smallest industry operators. Over the past decade, the adoption of new technologies, most notably computer-aided design (CAD) programs, has enhanced labour productivity. Als...purchase to read more.

    Additional Insights for the Engineering Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Engineering Services Industry are

  • Ability to compete on tender
  • Access to a highly skilled workforce
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Value of nonresidential construction and Government expenditure and investment in the Engineering Services industry impact industry performance..

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    What's in this report

    What is the Engineering Services Industry?

    Establishments in this industry apply the physical laws and principles of engineering in the design, development and use of machines, materials, instruments, structures, processes and systems. Industry services involve providing advice; preparing plans, designs and feasibility studies; providing technical services during construction or installation activities; inspecting and evaluating engineering projects; and other related services.

    Industry Products
  • Transportation
  • Power generation
  • Residential, commercial and institutional
  • Energy, mining, metals and chemicals
  • Advisory, project management, environmental and other
  • Industry Activities
  • Designing and managing construction and engineering infrastructure projects
  • Project planning and providing economic assessments
  • Providing design and management services for industrial processes and equipment
  • Providing feasibility studies, including environmental impact assessment and community consultation
  • Design and management for environmental projects
  • Providing chemical and electrical engineering services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of nonresidential construction
  • Government expenditure and investment
  • Demand from building, developing and general contracting
  • Demand from mining
  • Overnight rate

  • Current Performance
  • Weaker investment
  • Government intervention
  • Technology
  • Chart: Revenue Growth

  • Industry Outlook
  • Public infrastructure spending to be restored
  • Profit and enterprises
  • Rising rates increase costs
  • Table: Engineering Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Engineering Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining In Canada
  • Utilities In Canada
  • Construction In Canada
  • Manufacturing In Canada

  • Key Selling Industries
  • Accounting Services in Canada
  • Finance and Insurance In Canada
  • Software Publishing in Canada
  • Surveying & Mapping Services in Canada

  • Products & Services
  • Advisory, project management, environmental and other
  • Energy, mining, metals and chemicals
  • Residential, commercial and institutional
  • Power generation
  • Transportation
  • Chart: Engineering Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private businesses
  • Government bodies and nonprofit organizations
  • Sales outside of Canada
  • Individuals
  • Chart: Major Market Segmentation for the Engineering Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Engineering Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Engineering Services Industry

  • Industry Globalization
    SNC-Lavalin Group Inc., Fluor Canada Ltd.,
  • Table: SNC-Lavalin Group Inc. - financial performance
  • Table: Fluor Canada Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Engineering Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Engineering Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Value of non-residential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cad
  • Short for computer-assisted design; the use of computer technology to aid in creating, modifying, analyzing or optimizing a design.
  • Industrial Engineering
  • Engineering that is focused on optimizing complex processes or systems, including labour, production methods, materials and the inventory of finished products.
  • Nonemployer Establishment
  • A sole proprietorship that is one enterprise, one establishment and one employee.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Engineering Services market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Engineering Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Engineering Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Engineering Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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