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The Market for Consulting Engineers and Architects in Europe Has Stabilised

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The Market for Consulting Engineers and Architects in Europe Has Stabilised A REPORT FROM THE SWEDISH FEDERATION OF CONSULTING ENGINEERS AND ARCHITECTS DECEMBER 20162017 SECTOR REVIEW THE MARKET FOR CONSULTING ENGINEERS AND ARCHITECTS IN EUROPE HAS STABILISED A Swedish, Nordic and International Survey of The Consulting Engineering and Architectural Groups 1 KEY FIGURES 2016 (2015) SEK The sector had a turnover in Sweden of SEK 73.7 billion 73.7 (65 billion in 2015) billion 8 Revenue growth was 8% compared with 2015 ¹ % SEK 16.9 Swedish groups turned over SEK 16.9 billion in billion subsidiaries abroad (15.6) 60,500 The sector employed 60,500 personnel in Sweden employees (55,000) 6 Growth in personnel was 6% compared with 2015 ² % 15,800 Swedish groups employed 15,800 personnel in employees subsidiaries abroad (14,800) 11,000 The sector consisted of some 11,000 companies in Sweden companies SEK Turnover per employee was SEK 1,218,000 1,218k (1,186,000) 7.2 Average operating margin was 7.2 % (6.0 %) % 7.2 Average profit margin was 7.2 % (5.8 %) % 5.1 Average net margin was 5.1 % (3.9 %) % 1 Companies which together turn over around SEK 2.5 billion have been added in this year’s review. The actual growth is consequently 8% and not 13%. 2 Companies which together employ 2,000 personnel have been added in this year’s review. The actual growth is consequently 6% and not 10%. THE SECTOR CONTENTS REVIEW The Sector Review has been published by the Foreword by Magnus Höij, Swedish Federation of Consulting Engineers Association’s Managing Director 4 and Architects (STD-företagen) since 1995. It is a compilation of the architectural, engineering Five current trends 4 consultancy and industrial consultancy sectors Introduction, Lena Hagman, in Sweden, the Nordic countries and Europe. The Chief Economist Almega 6 Review presents ranking lists of the largest corpo- rate groups on the respective markets, interesting key business ratios, news about structural trans- THE SWEDISH MARKET 8 actions and information on the development and Sector development 2016 and 2017 8 economy within the sector over the past year. Since 2005, STD-företagen’s counterparts Development by sectors 9 in the neighbouring Nordic countries have Interview, Anders Wärefors, CEO Bjerking 11 contributed to the Review. The organisations Interview, Johan von Wachenfeldt, that participate in this cooperation are FRI and CEO Krook&Tjäder 12 Danske Ark (Danish Architects) in Denmark, RIF and Arkitektbedriftene (Architects’ association) in A comparison with other Norway, SKOL in Finland and FRV and SAMARK knowledge-intensive industries 14 (Architectural association) in Iceland. Interview, Åsa Bergman, The figures in the Review are based on the Managing Director Sweco Sweden 15 latest available data that we have been able to Key figures for the largest find on the respective firms. For just over half Swedish consulting firms 16 the firms the review is equivalent to a calendar closing for 2016. The remaining firms have split Interview, Maria Lindfelt, financial years. In most cases, we have received HR-& Communications Manager, WSP 17 their annual reports for 2016/17. However, some The 50 largest architectural groups 18 annual accounts were not ready when work on The 50 largest industrial consultancies 19 the collection of basic data came to an end, for Interview, John Lydholm, CEO LINK arkitektur 20 example for those companies whose annual ac- counts close at the end of August. In these cases, Swedish structural deals 21 we have retained the same figures as for 2015/16. Interview, Dimitris Gioulekas, CEO Knightec 22 For the sake of simplicity, we refer to the compiled The 30 largest groups in Sweden 25 figures that applied for 2016. The corporate information in the Review Sweden’s 300 largest groups 26 has been acquired via the databases Soliditet (Sweden) and Factiva Dow Jones Companies & Executives (Europe), from the Nordic organisa- THE NORDIC MARKET 32 tions, direct from companies or via the compa- Introduction 34 nies’ home pages. The monitoring covers some Nordic comparison of key figures 34 2,000 companies in Sweden, the Nordic Area and Europe. Collecting the information is an extensive The 100 largest architectural and time-consuming task, and in some cases groups in the Nordic region 35 it is impossible to obtain reliable information. FRI – the Danish market 37 The information on the international companies DA – the Danish market 40 is more difficult to access. In Sweden, annual reports are public documents. This is not the case Denmark’s 100 largest groups 44 in all countries, and many firms are reluctant to RIF – the Norwegian market 46 disclose their figures. In these cases, we use the AB – the Norwegian market 50 most recent material we can find. Consequently, all companies that appear in – or should appear Norway’s 100 largest groups 52 in – the Review are requested to contact STD- FRV/SAMARK – the Icelandic market 54 företagen and to submit their details in order to Iceland’s 17 largest groups 56 make sure that the information published on them is correct. SKOL – the Finnish market 57 We would like to thank those companies that Finland’s 100 largest groups 60 have helped us by submitting their annual reports or figures. Cover photo: We would especially like to thank Lena Hag- Citybanan train station at Odenplan THE INTERNATIONAL MARKET 62 man (Almega), Åsa Bergman (Sweco), Dimitris (Stockholm). Architects responsible: Ahlqvist&Almqvist. International development 64 Giou lekas (Knightec), Maria Lindfelt (WSP), John Lydholm (LINK Arkitektur), Johan von Wachen- Photo: Shutterstock/Stefan Holm Profit margin development, feldt (Krook & Tjäder Arkitekter) and Anders Europe’s 300 largest groups 64 Wärefors (Bjerking) for their contributions to the Swedish Federation of Consulting Engineers and Architects World’s 10 largest groups 64 report in interviews and introduction. Graphic design: Pär Ek Grafisk Form Listed consultancies in the West – a comparison 65 Printing: Ineko Stockholm 2017 Europe’s 50 largest architectural groups 66 DAVID CRAMÉR SWEDISH FEDERATION OF CONSULTING Translations: JNG Ainscough HB Europe’s 300 largest groups 67 ENGINEERS AND ARCHITECTS & Global Text AB SECTOR REVIEW • THE SWEDISH FEDERATION OF CONSULTING ENGINEERS AND ARCHITECTS • DECEMBER 2017 3 FOREWORD MAGNUS HÖIJ, MANAGING DIRECTOR OF THE SWEDISH FEDERATION OF CONSULTING ENGINEERS AND ARCHITECTS FIVE CURRENT TRENDS IN AN INCREASINGLY STRONG SECTOR THE SECTOR The need for engineering and archi- tectural expertise is greater than ever. This could be a summary of both 2015 and 2016, but in 2017 it is truer than ever. Our services are in de- mand from numerous directions, and demand is frequently greater than supply. In many cases, companies are having to turn down commissions. There is some concern that the market, in particular the housing market, will cool down during 2018. It is possible, even though there is still a shortage of homes in many Swedish cities and municipalities. But that this could in some dramatic way reduce the need for qualified MORE COMPLEX SERVICES NEW ROUTES TO FIND services within both urban planning NEW EMPLOYEES and development, infrastructure, schools and hospitals and so forth – I AS SOCIETY DEVELOPS and becomes in- THE SHORTAGE OF RESOURCES, both ar- quite simply do not think this is the creasingly driven by technology, it is be- chitects and engineers, has been acute case. The housing market will remain, coming increasingly important to be able for some time. It has created concerns for even though it might possibly change its character. to manage complex issues. It can con- both the sector’s development but also Our society, and trade and indus- cern solutions linked to industrial devel- for clients in different roles and for soci- try, will have an equally substantial opment, to cities’ growth, to major infra- ety in general. requirement, possibly greater, for structure projects or to political deliber- The university system is lagging be- continued innovation, creativity, ations. hind and is not able to increase capacity development and design as ever. An investment in our services and our There are few sectors that are cop- at short notice, even though immediate knowledge is quickly paid back in ing with such challenges better than action is required. While waiting for the increased value, in more effective our member companies. The in-depth universities to educate a sufficient num- solutions, in smarter production. This knowledge and experience that archi- ber of graduates, trade and industry is is true regardless of whether the de- mand for homes is high or low. tectural and engineering firms can offer obviously looking for other routes to find In a time of rapid transition, driven links knowledge of modern technology solutions. by technological development and with society’s major challenges. It also re- Offering opportunities for labour from internationalisation, the need for early quires cooperation between different ar- other countries is an obvious measure. and well thought out planning is simply increasing. eas of expertise. Many of our companies Many companies are actively looking for This makes me convinced that our have great breadth internally. Others are trained engineers and architects, others sector, with its engineering and archi- electing to work with partners in order to are establishing partnerships with inter- tectural expertise, is very strong and create alliances and networks. national actors. ready for an exciting new year. This is an area where insights and per- In some cases the companies are pro- MAGNUS HÖIJ spectives outside the country’s borders viding training themselves within pro- MANAGING DIRECTOR OF THE SWEDISH FEDERATION OF CONSULTING are of great importance. Demand for per- fessions with a shortage of skilled labour ENGINEERS AND ARCHITECTS spectives from other countries is going to in order to be able meet the market’s re- increase. And our know-how will also be quirements.
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