Stable Consulting Engineering Markets forecasted by EFCA

Dec 03, 2018

According to the Autumn market report released by the European Federation of Engineering Consultancy Associations (EFCA) stabilised markets are to be expected in Europe. While some markets continue to grow the report also identifies some factors that could challenge profitability.

Kevin Rudden, EFCA President, and Garland CEO echoed the findings of the report, continuing "The markets in southern Europe are still improving while the markets in Northern Europe are staying at a steady level of progress after a period of steady growth".  

Out of the 20 countries profiled the average order stock of the consulting engineering companies has increased in eight, and stayed stable in the remaining twelve. As a result of growing order stocks, the report shows that turnover is also increasing with twelve of the twenty counties expecting the total turnover of the consulting engineering industry to increase. 

Out of the twenty countries the market is good or very good in fourteen, with only Spain showing a weak market.

However, the report does outline some concerns. For example, staff shortage are driving up salary levels. This coupled with low fees is eating into profitability which is expected to level out in 2019 as staff shortages speed up salary increases. Henrik Garver, Chair of EFCA's Barometer task group suggests "BIM and new business models will be key drivers for the next improvement in profitability". 

You can read the full report here.

 

 

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