AMA Research has recently published the 2nd Edition of the
Consulting Engineers Market report. The report should be of
particular interest to engineering consultancy firms, contractors,
material suppliers and construction professionals, and provides a
comprehensive review of the engineering consultancy sector.
Over the past five years, there has been substantial growth in
size of the consulting engineers market and in 2008 the sector
grew by around 20% to reach revenues of around £10 billion,
boosted by a strong performance in infrastructure, utilities and
public sector construction.
The table above illustrates the growth of both UK and overseas
fees generated by UK consulting engineers in recent years, with
estimated forecasts for 2009-11.
The sector, especially civil engineering, is generally thought to
be more robust than the contracting industry in the face of the
current economic crisis and, while 2009-11 will be a difficult
period, activity is not expected to decline across all end use
sectors. Top growth sectors for 2009-2013 are expected to include
transport, energy, water and waste management sectors, which are
forecast to generate steady growth in demand over the mid-term.
Building fees currently represents the largest sector at around
25%, but this share is set to fall rapidly. Roads, rail, water and
environmental sectors account for a combined share of around 40%
of fee generation, with the rest of the market spread across other
sectors.
This 2nd edition of our report reviews the structure and size of
the overall consultancy sector, highlighting the fragmented
structure – though the top 4 players have a combined share of over
30%. The report also provides an analyses of market shares of
leading firms in various sectors, together with a review of key
market trends and the impact of the economic downturn on the
engineering consultancy market.
The report also reviews future public sector investment, the
Government’s targets for capital spending and the implications for
the engineering consultancy sector of a change in government
including likely public sector spending levels and the future of
planned infrastructure projects.
In addition, the report discusses the key factors affecting the
engineering consultancy sector including the impact of the
economic downturn on consultant workloads in 2008 and prospects
for the sector in 2009-2010 and beyond. We also review recent
merger & acquisition activity in the sector and discuss those
consultancies that are realigning market strengths in response to
the ‘credit crunch’.
