Industry Report – Engineering Services
Jennifer Nietz - Manager of Operations
July 2013 – We are often asked what type of companies we work with. Our answer is any organization that sales business-to-business. We launched our business in the engineering, construction, and specialty contracting market segment. Thus, we have become particularly familiar with the construction industry and their trends over the last 10 years. For this month’s industry report, we thought it would be interesting to visit the industry of engineering services and what the future will bring to those within the industry.
As we look into the future, there is going to be an increased need for engineering services. The industry definitely experienced a downturn over the last five years as the economy slowed; however, as spending and new construction increases we will see improvements. In 2014, an increase in value of nonresidential construction and revenue are expected to increase +5%, with employment lagging slightly behind that level.
In 2013, industrial and manufacturing projects accounted for over 20% of all construction put in place, with transportation projects following closely at 18.5%.
As we prospect this market, we are finding that organizations are more interested in arranging meetings and engage in conversation around actual project work that will be completed in 2014. We are starting to hear the word ‘funding’ as opposed to ‘budgeting’.