Engineering consultancies relying on infrastructure

By Desi Corbett, Engineers Australia

Engineering consulting as an industry is third in line in growth behind property operators and real estate services, a new list of top 1000 companies reveals.

IBISWorld has released its 2015 top 1000 list of Australian companies measured by total revenue following up last year’s list that highlighted the breakout growth of the $41.2 billion engineering consulting industry.

BHP Billiton is the top earner with $73 billion in revenue and Rio Tinto is in third place with $59 billion. Leighton Holdings sits at number 20 with $17 billion and WorleyParsons moved up two spots to 36 due to an increase in revenue after it restructured to consolidate a number of divisions, shedding 4200 jobs in 2013-14.

Many of the energy companies are in the first 500 along with car manufacturers, mining companies and oil and gas producers. BlueScope Steel is at 49 while chemical giant Orica rates 54 with revenue of $7 billion. LNG, mining and metals firm Bechtel Australia wasn’t far behind with $5 billion.

Calibre Group at 537 was cited by IBISWorld as an example of engineering consultancies shifting into the infrastructure sector, relying on gains in that segment to offset falls from resources.

“This shift by engineering consulting companies into the infrastructure sector could result in increased competition for building and construction firms, such as Lend Lease Group (24), that also provide engineering and construction services in the infrastructure space,” IBISWorld’s report stated.

IBISWorld forecast that increased government spending on public infrastructure such as roads and rail, increasing technological complexity and continued industry consolidation should result in stable growth for the engineering consultancies over the next five years.