Crumbling foundations: A shaky economic environment has limited project spending and industry demand
The Engineering Consulting industry has enjoyed beneficial operating conditions for most of the past five years. Construction activity has grown strongly leading up to 2022-23, lifting demand for consulting services. Even so, economic uncertainty surrounding the pandemic has discouraged private sector companies from undertaking large-scale construction projects, reducing demand. Overall, industry revenue is expected to climb at an annualised 2.9% over the five years through 2022-23, to $7.7 billion. Interest rate hikes in the face of inflationary pressures and negative business confidence have dampened downstream demand as clients are reluctant to invest in large-scale projects, triggering revenue to drop by an anticipated 3.9% in 2022-23. This trend encouraged smaller firms to sacrifice profit margins to secure the limited projects available.
Industry firms provide engineering consulting services across a range of disciplines, including civil, mechanical, electrical, marine, mining and hydraulics. Engineering services include designing, developing and utilising machines, materials, instruments, structures, processes and systems. Industry firms provide advice, prepare feasibility studies, prepare preliminary and final plans and designs, provide technical services, and inspect and evaluate engineering projects.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.
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