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CORPORATE OVERVIEW
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INDUSTRY OVERVIEW
INDUSTRY DESCRIPTION
EXECUTIVE INSIGHT
FINANCIAL INFORMATION
Business Description
Schneider Electric Systems Usa, Inc. is primarily engaged in providing professional engineering services. Establishments primarily providing
and supervising their own engineering sta on temporary contract to other firms are included in this industry.
Source: D&B
Industry
Company Identifiers
Key Contacts
Mark Feasel
President of Smart Grids
Lance Haines
Chief Technology O icer
Geo Williamson
Vice President - Business Development
Sue Redmore
Director Global Channel Strategy & Partner Marketing
Nisa Bradley
Vice President Marketing
HQ SCHNEIDER ELECTRIC SE
35 Rue Joseph Monier, Rueil Malmaison, Ile-De-France, 92500, France
D-U-N-S® Number: 27-513-6398
Has Not Opted Out of Direct Marketing
HQ SE Relays LLC
200 N Martingale Rd Ste 1000, Schaumburg, Illinois, 60173-2035, United States
D-U-N-S® Number: 61-317-2316
Has Not Opted Out of Direct Marketing
S Square D LLC
3003 Lakeland Cv, Flowood, Mississippi, 39232-9504, United States
D-U-N-S® Number: 01-644-7758
Has Not Opted Out of Direct Marketing
HQ Siebe Inc
33 Commercial St B51-2C, Foxboro, Massachusetts, 02035-5309, United States
D-U-N-S® Number: 13-311-6819
Has Not Opted Out of Direct Marketing
HQ FRANCE TRANSFO
Voie Romaine, Maizieres Les Metz, Alsace-Champagne-Ardenne-Lorraine, 57280, France
D-U-N-S® Number: 27-430-4575
Has Not Opted Out of Direct Marketing
S BCV TECHNOLOGIES
Zone Industrielle, Fontenay Le Comte, Pays-De-La-Loire, 85200, France
D-U-N-S® Number: 27-545-8933
Has Not Opted Out of Direct Marketing
S POTENTSIAL, OOO
1 ul. Bystrova, Kozmodemyansk, 425350, Russian Federation
D-U-N-S® Number: 56-544-1784
Has Not Opted Out of Direct Marketing
S Telvent Sweden AB
PO Box 5814, Stockholm, Stockholm, 102 48, Sweden
D-U-N-S® Number: 63-237-0255
Has Not Opted Out of Direct Marketing
HQ ABN GmbH
Daimlerstr. 10-12, Neuenstadt am Kocher, Baden-Württemberg, 74196, Germany
D-U-N-S® Number: 31-406-6779
Has Not Opted Out of Direct Marketing
HQ UNIFLAIR SPA
Via Della Tecnica 2, Conselve, Padova, 35026, Italy
D-U-N-S® Number: 43-662-4936
Has Not Opted Out of Direct Marketing
HQ SHNEIDER ELEKTRIK, AO
d. 12 korp. 1 etazh 6 pom. I kom. 15, ul. Dvintsev, Moscow, 127018, Russian Federation
D-U-N-S® Number: 64-450-7683
Has Not Opted Out of Direct Marketing
S SHEK, OOO
d. 15 ofis 303, prospekt Gvardeiski, Kaliningrad, 236022, Russian Federation
D-U-N-S® Number: 68-283-2549
Has Not Opted Out of Direct Marketing
S FLISR, OOO
d. 1 pom. 1, ul. Malevicha, Moscow, 121205, Russian Federation
D-U-N-S® Number: 53-686-2265
Has Not Opted Out of Direct Marketing
S NEWLOG
Zac Chesnes Nord, St Quentin Fallavier, Auvergne-Rhone-Alpes, 38070, France
D-U-N-S® Number: 39-712-2545
Has Not Opted Out of Direct Marketing
S Schneider Electric Perú S.A.
Av. Antonio Miro Quesada 425 Ofic. 1313, Lima, Lima, 17, Peru
D-U-N-S® Number: 93-488-4420
Has Not Opted Out of Direct Marketing
HQ TRANSFO SERVICES
2 Boulevard Laennec, Chateaubourg, Bretagne, 35220, France
D-U-N-S® Number: 26-900-0352
Has Not Opted Out of Direct Marketing
S IGE-XAO TUNISIE
Bloc 13 A01 3Eme Etage Pole El Ghazela Des Technologies Et De La, Ariana Medina(Arr), Tunisia
D-U-N-S® Number: 36-254-7993
Has Not Opted Out of Direct Marketing
HQ PROSYST
Zac De Templemars, Templemars, Nord-Pas-De-Calais-Picardie, 59175, France
D-U-N-S® Number: 39-712-4277
Has Not Opted Out of Direct Marketing
S IGE+XAO B.V.
Beersdalweg 84 A, Heerlen, Limburg, 6412 PE, Netherlands
D-U-N-S® Number: 41-588-7769
Has Not Opted Out of Direct Marketing
S MAYRIDIS VOYAGES
31 Rue Du Languedoc, Toulouse, Languedoc-Roussillon-Midi-Pyrenees, 31000, France
D-U-N-S® Number: 38-059-8136
Has Not Opted Out of Direct Marketing
S SCANELEC
1 Le Village, Épône, Ile-De-France, 78680, France
D-U-N-S® Number: 50-284-4962
Has Not Opted Out of Direct Marketing
HQ INVENSYS LIMITED
2Nd Floor, London, SW1E 5JL, United Kingdom
D-U-N-S® Number: 21-608-7502
Has Not Opted Out of Direct Marketing
HQ Schneider Electric Systems Usa, Inc.
38 Neponset Ave, Foxboro, Massachusetts, 02035-2037, United States
D-U-N-S® Number: 00-101-3994
Has Not Opted Out of Direct Marketing
S S A Foxboro Controles
2 Ave Ponce De Leon Ste 501, San Juan, Puerto Rico, 00918-1609, United States
D-U-N-S® Number: 09-105-3967
Has Not Opted Out of Direct Marketing
S TECALEMIT LIMITED
Saxon House 2 4, Windsor, SL4 1EN, United Kingdom
D-U-N-S® Number: 21-620-9247
Has Not Opted Out of Direct Marketing
S A P V BULGARIA OOD
3 165, Sofia, 1172, Bulgaria
D-U-N-S® Number: 67-351-7322
Has Not Opted Out of Direct Marketing
HQ EUROTHERM LIMITED
Faraday Close, Worthing, BN13 3PL, United Kingdom
D-U-N-S® Number: 21-689-6720
Has Not Opted Out of Direct Marketing
S EUROTHERM POLAND SP Z O O
Ul. Turynska 101, Tychy, Slaskie, 43-100, Poland
D-U-N-S® Number: 52-209-5371
Has Not Opted Out of Direct Marketing
S EUROTHERM LIMITED
Block A Maynooth Business Campus, Ireland
D-U-N-S® Number: 98-546-3244
Has Not Opted Out of Direct Marketing
HQ EUROTHERM SRL
Via Xxiv Maggio 2, Guanzate, Como, 22070, Italy
D-U-N-S® Number: 44-685-6635
Has Not Opted Out of Direct Marketing
S B T R INTERNATIONAL LIMITED
Invensys House, London, SW1P 1BX, United Kingdom
D-U-N-S® Number: 21-164-1428
Has Not Opted Out of Direct Marketing
S nxtControl GmbH
Aumühlweg 3/B14, Leobersdorf, Niederösterreich, 2544, Austria
D-U-N-S® Number: 30-178-8886
Has Not Opted Out of Direct Marketing
HQ Wonderware Scandinavia AB
Hyllie Stationstorg 31, 7tr, Malmö, Skåne, 215 32, Sweden
D-U-N-S® Number: 63-255-3116
Has Not Opted Out of Direct Marketing
S ECKARDT
20 Rue De La Marne, Soultz Haut Rhin, Alsace-Champagne-Ardenne-Lorraine, 68360,…
D-U-N-S® Number: 27-722-6932
Has Not Opted Out of Direct Marketing
HQ EUROTHERM AUTOMATION
Parc D A aires, Dardilly, Auvergne-Rhone-Alpes, 69570, France
D-U-N-S® Number: 27-641-0651
Has Not Opted Out of Direct Marketing
HQ PelcoEurope B.V.
Maisdijk 6, Helmond, Noord-Brabant, 5704 RM, Netherlands
D-U-N-S® Number: 40-318-5601
Has Not Opted Out of Direct Marketing
S PELCOEUROPE B V
Calle De La Calendula, 95 - Minip Ii Ed M Of 6, Alcobendas, Madrid, 28109, Spain
D-U-N-S® Number: 46-019-0786
Has Not Opted Out of Direct Marketing
HQ Elko AS
Sandstuveien 68, Oslo, 0680, Norway
D-U-N-S® Number: 51-502-2309
Has Not Opted Out of Direct Marketing
S Elko AB
Glasfibergatan 8, Älvsjö, Stockholm, 125 45, Sweden
D-U-N-S® Number: 35-409-9145
Has Not Opted Out of Direct Marketing
HQ Lexel AB
Frösundaviks Allé 1, Solna, Stockholm, 169 70, Sweden
D-U-N-S® Number: 50-875-6723
Has Not Opted Out of Direct Marketing
S AB Wibe
Wibevägen 1, Mora, Dalarna, 792 36, Sweden
D-U-N-S® Number: 35-399-6499
Has Not Opted Out of Direct Marketing
S BOISSIERE FINANCE
35 Rue Joseph Monier, Rueil-Malmaison, Ile-De-France, 92500, France
D-U-N-S® Number: 76-458-0064
Has Not Opted Out of Direct Marketing
S Schneider Panama SA
Bethania, Urbanizacion Los Angeles, Calle 63 A, No. 24, Panama City, Panama
D-U-N-S® Number: 81-680-5912
Has Not Opted Out of Direct Marketing
HQ GET LIMITED
Sta ord Park 5, Telford, TF3 3BL, United Kingdom
D-U-N-S® Number: 21-045-3676
Has Not Opted Out of Direct Marketing
S M&C Energy AG
Centro Nord-Sud 2E, Bioggio, Ticino, 6934, Switzerland
D-U-N-S® Number: 48-091-8713
Has Not Opted Out of Direct Marketing
S SCHNEIDER LIMITED
Sta ord Park 5, Telford, TF3 3BL, United Kingdom
D-U-N-S® Number: 57-844-9308
Has Not Opted Out of Direct Marketing
S FED-SUPREMETECH LIMITED
Rm 1001-2 10/F YAN HING CTR, Sha Tin, Hong Kong SAR
D-U-N-S® Number: 68-662-3695
Has Not Opted Out of Direct Marketing
HQ RIB So ware SE
Vaihinger Str. 151, Stuttgart, Baden-Württemberg, 70567, Germany
D-U-N-S® Number: 32-903-5468
Has Not Opted Out of Direct Marketing
HQ Rib A/S
Ryesgade 19C, sal 3, København N, Hovedstaden, 2200, Denmark
D-U-N-S® Number: 30-605-9234
Has Not Opted Out of Direct Marketing
S DOCIA LIMITED
3Rd Floor Abbey House, London, EC1M 4DZ, United Kingdom
D-U-N-S® Number: 21-722-7004
Has Not Opted Out of Direct Marketing
S xTWO GmbH
Gießener Str. 42, Hungen, Hessen, 35410, Germany
D-U-N-S® Number: 31-356-7114
Has Not Opted Out of Direct Marketing
S CEC CAMEROUN
Immeuble Jean Vespa, Yaounde, Cameroon
D-U-N-S® Number: 55-250-1074
Has Not Opted Out of Direct Marketing
S CAFTEL
-, Abidjan, Cote d'Ivoire
D-U-N-S® Number: 55-250-3062
Has Not Opted Out of Direct Marketing
HQ Feller AG
Bergstrasse 70, Horgen, Zürich, 8810, Switzerland
D-U-N-S® Number: 48-000-2492
Has Not Opted Out of Direct Marketing
S Elektriska AB Delta
Hammarvägen 10, Arlöv, Skåne, 232 37, Sweden
D-U-N-S® Number: 35-407-2134
Has Not Opted Out of Direct Marketing
S Marisio S.A.
Lautaro 3005, Quilicura, Santiago, 8700000, Chile
D-U-N-S® Number: 98-111-6833
Has Not Opted Out of Direct Marketing
S HIMEL ALGERIE
Cooperative S A S 3 Lot N12, Ouled Fayet, 16059, Algeria
D-U-N-S® Number: 36-274-8863
Has Not Opted Out of Direct Marketing
S Elcase AG
Alti Ruedelfingerstrasse 24, Marthalen, Zürich, 8460, Switzerland
D-U-N-S® Number: 48-572-1497
Has Not Opted Out of Direct Marketing
S SCHNEIDER ELECTRIC RAK FZE
Po Box 17192, Dubai, United Arab Emirates
D-U-N-S® Number: 85-121-0155
Has Not Opted Out of Direct Marketing
S Schneider-Electric s.a.l
Al-Mannawi Basha, 313, Basra, Iraq
D-U-N-S® Number: 53-460-0805
Has Not Opted Out of Direct Marketing
S AVELTYS
43 Rue Camille Desmoulins, Issy Les Moulineaux, Ile-De-France, 92130, France
D-U-N-S® Number: 26-438-2994
Has Not Opted Out of Direct Marketing
S STECK ELECTRIC S.A.
Pasajo Belisario Hueyo 165, Avellaneda, Buenos Aires, B1870BNA, Argentina
D-U-N-S® Number: 97-793-2362
Has Not Opted Out of Direct Marketing
S BEHAR-SECURITE
55 Avenue De L Europe, Courbevoie, Ile-De-France, 92400, France
D-U-N-S® Number: 50-034-5108
Has Not Opted Out of Direct Marketing
S Schneider Electric
Adresse inconnue belge 0, Inconnu, 0000, Belgium
D-U-N-S® Number: 37-059-8371
Opts Out of Direct Marketing
S SCHNEIDER ELECTRONIC
'302, Cli on Centre', Karachi, Pakistan
D-U-N-S® Number: 64-544-1833
Has Not Opted Out of Direct Marketing
S Ige+Xao Belgium
Chaussée de La Hulpe 181 BP 21, Bruxelles, 1170, Belgium
D-U-N-S® Number: 37-098-1814
Has Not Opted Out of Direct Marketing
Citibank N.A., U.S. Bank Equipment Finance A Division Of U.S. Bank N.A., Banc Of America Leasing & Capital Llc, Chesapeake Funding
Bank:
Llc
Industry Codes
NAICS 2017:
541330 - Engineering Services (Primary)
334513 - Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
561110 - O ice Administrative Services
ANZSIC 2006:
6923 - Engineering Design and Engineering Consulting Services (Primary)
2419 - Other Professional and Scientific Equipment Manufacturing
696 - Management and Related Consulting Services
ISIC Rev 4:
7110 - Architectural and engineering activities and related technical consultancy (Primary)
2651 - Manufacture of measuring, testing, navigating and control equipment
7020 - Management consultancy activities
NACE Rev 2:
7112 - Engineering activities and related technical consultancy (Primary)
2651 - Manufacture of instruments and appliances for measuring, testing and navigation
7022 - Business and other management consultancy activities
UK SIC 2007:
71121 - Engineering design activities for industrial process and production (Primary)
2651 - Manufacture of instruments and appliances for measuring, testing and navigation
7022 - Business and other management consultancy activities
UK SIC 2003:
74204 - Engineering consultative and design activities (Primary)
Manufacture of instruments and appliances for measuring, checking, testing, navigating and other purposes, except industrial process
3320 -
control equipment
7414 - Business and management consultancy activities
US SIC 1987:
8711 - Engineering Services (Primary)
3823 - Industrial Instruments for Measurement, Display, and Control of Process Variables; and Related Products
8741 - Management Services
US 8-Digit SIC:
87110200 - Industrial engineers (Primary)
38230301 - Flow instruments, industrial process type
87410000 - Management services
Business Description
Schneider Electric Systems Usa, Inc. is primarily engaged in providing professional engineering services. Establishments primarily providing
and supervising their own engineering sta on temporary contract to other firms are included in this industry.
Source: D&B
Financial Data
Fast Facts
Companies in this industry apply engineering principles to design and develop structures, systems, and processes. Major companies include
AECOM, Bechtel Group, and Jacobs Engineering (all based in the US), along with Abengoa (Spain), Babcock International (UK), SNC-Lavalin
Group (Canada), Wood Group (UK), and Worley (Australia).
Construction spending, particularly in emerging markets, drives global demand for engineering services. Annual worldwide spending for
engineering services reached $840 billion in 2016 and will exceed $1 trillion by 2021, according to Technavio.
The US engineering services industry includes about 65,000 establishments (single-location companies and units of multi-location companies)
with combined annual revenue of about $240 billion.
Reflects snapshot of industry performance vs. industry risk over Total US manufacturers' shipments, an indicator of demand for
the next 12 to 24 months relative to other U.S. industries, along engineering services used in the manufacturing process, fell 8.3
with short descriptions of vital demand and risk factors influencing percent year-to-date in July 2020 compared to the same period in
the industry. Use to quickly determine the overall projected health 2019.
of an industry.
The value of US nonresidential construction spending, a demand
indicator for engineering services used in construction, rose 2.7
Demand: Depends on construction and industrial activity percent year-to-date in July 2020 compared to the same period in
Requires accurate project cost estimating 2019.
Risk: Housing slumps and liability lawsuits
Total US revenue for engineering services fell 11.7 percent in the
second quarter of 2020 compared to the same period in 2019.
Industry Forecast
Revenue (in current dollars) for US engineering and R&D services is forecast to grow at an annual compounded rate of 5% between 2020 and
2024.
Data Published: July 2020
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College
Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate
economy.
Top Challenges & Talking Points Top Opportunities & Talking Points
Project cost overruns are a primary cause of financial distress for To diversify, firms are focusing on a "one-stop shopping"
engineering companies. marketing approach.
How accurately does the firm estimate costs? What additional complementary services does the firm o er for "one-stop
shopping"?
Vulnerability to Litigation
Electricity Infrastructure Investments
The nature of engineering work leaves firms open to liability
lawsuits, both for poor work and inattention to regulations, as Civil engineering firms may benefit from an increase in electricity
poor engineering work can result in injury and death. infrastructure investments.
How does the firm protect itself from litigation? What types of energy-related projects does the firm typically bid on?
VP Sales/Marketing - Sales
Forming Alliances with Architects and Construction
Companies
How critical are alliances with other firms?
Industry Description
Companies in this industry apply engineering principles to design and develop structures, systems, and processes. Major companies include
AECOM, Bechtel Group, and Jacobs Engineering (all based in the US), along with Abengoa (Spain), Babcock International (UK), SNC-Lavalin
Group (Canada), Wood Group (UK), and Worley (Australia).
Construction spending, particularly in emerging markets, drives global demand for engineering services. Annual worldwide spending for
engineering services reached $840 billion in 2016 and will exceed $1 trillion by 2021, according to Technavio.
The US engineering services industry includes about 65,000 establishments (single-location companies and units of multi-location companies)
with combined annual revenue of about $240 billion.
Competitive Landscape
Success in the engineering services industry requires e icient bidding and cost controls. Customers are more knowledgeable about costs and
are breaking up projects into smaller elements -- potentially reducing e iciencies of scale -- and are expecting contractors to take on the bulk of
cost risk, according to PricewaterhouseCoopers. Reduced government and commercial spending on infrastructure and construction projects
during times of economic or political discord can diminish bidding opportunities.
Small firms, which can e ectively compete with larger ones by having expertise in a particular field or region, are o en hired as consultants on
larger projects if they have applicable expertise. Large firms are advantaged in designing and managing large projects, but may face challenges
on smaller projects in fields where they lack specialization. Consolidation among smaller players is common under flat market conditions. The
US industry is fragmented: the 50 largest firms account for about 40% of revenue. Large global players have tended to originate in the US and
Europe, but engineering and construction firms in China, India, and Korea are working to establish an international presence.
Competitive Advantages:
E icient Cost Management -- Under fixed-cost contracts, companies bear the burden of cost overruns if estimates are inaccurate. Engineering
firms must direct resources toward improved estimation and procurement processes.
Adopting New Technologies -- Emerging design and data tools are allowing companies to increase process e iciencies. The increased use of
mobile technology and cloud computing allow large amounts of data to be shared, stored, and accessed from more places.
Identifying Specialization Opportunities -- The ability to successfully win contracts in highly competitive and lucrative market sectors is
essential. Companies must target the most profitable market sectors and avoid less cost-e ective areas of operation. Specializing in growing
fields such as environmental, telecom, or infrastructure engineering can gain companies competitive advantages in winning bids.
Companies to Watch:
AECOM specializes in commercial facilities such as sports centers but also designs for energy, transportation, government, and water projects.
The company provides a range of engineering, construction, and management services.
Bechtel Group has o ices in about 25 countries around the globe. The company focuses on large energy and mining projects.
Wood Group provides design, consulting, and project management for oil and gas, clean energy, mining, and environmental sectors.
Major engineering services include construction design and management, industrial process design, systems engineering, and maintenance
and operations. Industrial and manufacturing projects account for about a quarter of industry revenue, followed by transportation, power
generation, and commercial building projects (each around 10% revenue). Other fields include municipal utility, residential building,
telecommunications, waste management, and power transmission projects.
Engineering projects require skills in analysis, planning, design, development, project management, and operations. Most firms specialize in a
particular field of engineering; companies that provide engineering services to the construction industry tend to be among the biggest in terms
of revenue. Larger firms serve a range of industries and may also provide architectural, construction, and maintenance services. Most
engineering work is per project, such as designing and constructing a highway or formulating an environmental plan for a wetlands area.
Engineering firms sell the knowledge and skills of their employees, so attracting and retaining qualified engineers is an ongoing concern. Due
to the complexity of many jobs, engineering firms o en hire subcontractors and consultants to perform specialized work. Material inputs are
provided by subcontractors.
Technology
Technology trends influence how engineers work. The increased use of mobile technology and cloud computing allow large amounts of data
to be shared, stored, and accessed from more places. 3D printing technology has transformed the way new products are modeled and
developed, allowing engineers to transform plans into tangible objects more quickly and a ordably. The growing ubiquity of the internet of
things (IoT) and proliferation of machine-generated data are increasing demand for analytics and storage.
Emerging technologies also create new demand for engineering services. Examples include e orts to improve energy e iciency using "smart
grids," electricity delivery systems that better utilize computer networking and automation technologies; investments by manufacturers in
robotics and other automation technologies; and integration of composites and other new materials into transportation equipment.
Typical customers include governments; industrial, manufacturing, and commercial enterprises; real estate developers; and construction firms.
Some companies rely on government entities for the majority of their business.
Many firms depend on large customers for repeat business. Because referrals are an important source of new customers, firms cultivate
relationships with past customers, other engineering firms, architects, and construction companies. Firms may advertise their expertise in trade
magazines. Many engineering contracts are obtained a er a bidding process. In the private sector, a customer typically invites several firms to
bid on a particular project. Public sector bids are usually open to all bidders who meet certain basic technical and financial qualifications. The
bidding process usually involves preparing a detailed plan of action for a project and a cost estimate. Firms o en collaborate to bid on large
projects that require a range of expertise.
Contracts are awarded to an engineering firm under a variety of pricing schemes that assign the risk of cost overruns. Under a fixed-cost (or
lump sum) contract, an engineering firm is responsible for any costs incurred in excess of those forecast, but can also make a bigger profit if
costs are less. Under a cost reimbursable (or cost plus) contract, the customer pays for all costs, plus a fee that may be a lump sum or a markup
on labor costs. Under a guaranteed maximum price contract, the customer pays a fee plus all costs up to a maximum amount. Additional terms
may be negotiated in any of these contracts to address how costs are handled if the customer changes the project's scope.
Engineering firms typically receive progress payments as they work on a project, but cash flow can be highly uneven, especially for smaller
firms that work on just a few projects at a time. Final payments are o en delayed until well a er a project is finished ("retainage").
For the industry in the US, the working capital to sales ratio averages about 14%. Accounts receivable are o en high -- about 55 days' sales, on
average -- and disputes with customers about payments and reimbursable costs are common. Some small and mid-sized companies use
factoring, asset-based lending, bank financing or online receivables financing to help fund their businesses.
Typical gross margins for engineering firms in the US are about 60% of net sales. Labor is the major cost for most firms, and is divided between
direct (project-related) and indirect (general overhead, marketing, and personal leave) expenses. Costs for liability insurance can be high
because poor engineering can have catastrophic consequences.
Regulation
Engineering firms must comply with numerous federal, state, and local building codes, safety regulations, hiring practices, and environmental
rules. Public projects o en entail even more detailed regulations. Companies generally have to maintain detailed records of many activities
associated with a project. Certain engineering specialties may require licensing to practice in a state. Companies working for government
agencies must comply with procurement laws and anti-bribery laws.
Working Capital Turnover by Company Size
The working capital turnover ratio, also known as working capital to sales, is a measure of how e iciently a company uses its capital to
generate sales. Companies should be compared to others in their industry.
Financial industry data provided by MicroBilt Corporation collected from 32 di erent data sources and represents financial performance of
over 4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS).
More data available at www.microbilt.com.
Annual global spending for engineering services reached $840 billion in 2016 and will exceed $1 trillion by 2021, according to Technavio. Top
engineering companies based outside the US include Abengoa (Spain), Babcock International (UK), SNC-Lavalin Group (Canada), Wood Group
(UK), and WorleyParsons (Australia). Global engineering consultancies o en are managed regionally, which increases understanding of clients
in di erent markets.
A construction boom in developing countries and tough competition at home have prompted many European engineering firms to expand to
emerging markets. Despite some significant political and financial risks, most large firms see advantages in overseas markets with strong urban
and consumer growth trends. The global construction market is valued at about $8 trillion, and will be worth $15.5 trillion by 2030, according to
Global Construction Perspectives and Oxford Economics. Over the next decade, growth in emerging markets such as India, China, Indonesia,
and Mexico is expected to outpace that in developed countries.
Qualified workers are a critical need for global engineering service firms. Although developing countries such as India produce plenty of
engineers, only half of engineering graduates have employable skills. Engineers that are trained to follow set processes only are not as sought-
a er as are engineers who have been exposed to global best practices and innovative approaches to engineering, according to Global Services
Media.
Engineering services firms are subject to numerous environmental regulations worldwide, which vary by country. Firms that create
environmental damage from construction and maintenance projects may be liable for remediation costs, which can total millions of dollars.
In the US, about 30% of engineering services establishments are located in California, Florida, and Texas -- populous states with many
construction projects. California, Texas, Florida, New York, Washington, and Illinois typically are the states with the highest-valued commercial
construction activity. Smaller companies o en work locally. However, large companies prefer to work in a range of markets to reduce exposure
to risks that may a ect a particular geographic region. Small US firms close to the Canadian border may partner with Canadian engineering
firms to bid on projects.
Human Resources
Most employees in engineering services have special technical or engineering skills and are accordingly well paid. Average hourly industry
wages are significantly higher than the national average. Starting salaries for engineering graduates (most fields require a bachelor's degree)
are among the highest in the US, at about $69,000, according to the National Association of Colleges and Employers. The industry's injury rate
in the US is significantly less than the national average for all industries.
Construction growth and the demand for workers with advanced technical skills are improving job prospects for all types of engineers.
Demand for engineers is also being driven by older engineers reaching retirement age. In addition, the increase in construction around the
world is creating new opportunities for engineers. Civil, mechanical, industrial, electrical, and electronics engineers make up two-thirds of the
US engineering workforce; growing specialties include petroleum, geological, and industrial engineers.
Average Hourly Earnings & Annual Wage Increase - Bureau of Labor Statistics
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Executive Insight Powered by
Engineering Services
How does the firm manage cash flow to avoid layo s during periods of weak
Because skilled sta is hard to replace, firms avoid cutting sta
demand?
during periods of low activity.
Human Resources - HR
What challenges does the company face meeting special sta ing needs of
For particular projects, workers with special expertise or skills may
new projects?
be needed, and may be hard to find.
VP Sales/Marketing - Sales
How does the company build and maintain relationships with prospective
Firms must maintain contact with a large number of potential
customers?
customers to have steady work.
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Financial Information Powered by
Engineering Services
The quick ratio, also known as the acid test ratio, measures a company's ability to meet short-term obligations with liquid assets. The higher
the ratio, the better; a number below 1 signals financial distress. Use the quick ratio to determine if companies in an industry are typically able
to pay o their current liabilities.
Financial industry data provided by MicroBilt Corporation collected from 32 di erent data sources and represents financial performance of
over 4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS).
More data available at www.microbilt.com.
The working capital turnover ratio, also known as working capital to sales, is a measure of how e iciently a company uses its capital to
generate sales. Companies should be compared to others in their industry.
Financial industry data provided by MicroBilt Corporation collected from 32 di erent data sources and represents financial performance of
over 4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS).
More data available at www.microbilt.com.
The ratio of current liabilities to net worth, also called current liabilities to equity, indicates the amount due creditors within a year as a
percentage of stockholders' equity in a company. A high ratio (above 80 percent) can indicate trouble.
Financial industry data provided by MicroBilt Corporation collected from 32 di erent data sources and represents financial performance of
over 4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS).
More data available at www.microbilt.com.
Engineering Services
Acquisition multiples below are calculated medians using at least 3 US private industry transactions completed between 1/2008 and
12/2019 and are based on middle-market transactions where the market value of invested capital (the selling price) was less than $1B. Data
updated annually. Last updated: December 2019.
MVIC (Market Value of Invested Capital) = Also known as the selling price, the MVIC is the total consideration paid to the seller and includes
any cash, notes and/or securities that were used as a form of payment plus any interest-bearing liabilities assumed by the buyer.
Net Sales = Annual Gross Sales, net of returns and discounts allowed, if any.
Gross Profit = Net Sales - Cost of Goods Sold
EBIT = Operating Profit
EBITDA = Operating Profit + Noncash Charges
SOURCE: DealStats (formerly Pratt's Stats), 2019 (Portland, OR: Business Valuation Resources, LLC). Used with permission. DealStats is
available at https://www.bvresources.com/learn/dealstats
Business Challenges
Vulnerability to Litigation
The nature of engineering work leaves firms open to liability lawsuits, both for poor work and inattention to regulations, as poor engineering
work can result in injury and death. The increasing complexity of many engineering projects increases the likelihood of errors. Engineering
service firms must comply with a large number of regulations, the improper handling of which can result in criminal fines and penalties.
Business Trends
Consolidation
To broaden the types of services they provide and enhance geographic coverage, engineering firms have grown through acquisitions. The
largest firms are the most likely to be involved in M&A activity. Consolidation in customer industries, among construction and chemical
companies, for example, is encouraging consolidation among the engineering firms that serve them.
Industry Opportunities
3D Printing Technology
Smaller-scale 3D printers are changing the way products are designed and manufactured. The printers allow items to be created instantly from
a digital model. The process, which is also called additive manufacturing, can speed up the product development process and create
substantial cost savings.