A REPORT FROM THE SWEDISH FEDERATION OF CONSULTING ENGINEERS AND ARCHITECTS DECEMBER 2018 STRONG SECTOR UNDERGOING CHANGE FROM GLOBALISATION AND DIGITALISATION A Swedish, Nordic and International Survey of The Consulting Engineering and Architectural Groups KEY FIGURES 2017 (2016) 86 The sector turnover in Sweden was SEK 86 billion (SEK 73.7 billion) billion 8 The increase in turnover was 8 % compared with 2016¹ percent 17.4 Swedish groups had sales amounting to SEK 17.4 billion billion in subsidiaries abroad (SEK 16.9 billion) 66 200 The sector had a total of 66 200 employees employees in Sweden (60 500) 5 Personnel growth was 5 % compared with 2016² percent 16 000 Swedish groups had 16 000 employees employees in subsidiaries abroad (15 800) 12 000 The sector consisted of some 12 000 companies in Sweden (11 000) companies SEK 1,300k The turnover per employee was SEK 1 300 000 (SEK 1 218 000) 7.4 The average operating margin was 7.4 % (7.2 %) percent 7.1 The average profit margin was 7.1 % (7.2 %) percent 4.7 The average net margin was 4.7 % (5.1 %) percent 1 In this year’s review, companies that together have a turnover of over SEK 6.4 billion have been added to the survey. As a consequence, the real growth rate is 8 % and not 17 %. 2 In his year’s review, companies that together employ 2 700 personnel have been added to the survey. As a consequence, the real growth rate is 5 % and not 9 %. SECTOR REVIEW • THE SWEDISH FEDERATION OF CONSULTING ENGINEERS AND ARCHITECTS • DECEMBER 2018 ABOUT SVENSKA THE SECTOR TEKNIK&DESIGN- CONTENTS REVIEW FÖRETAGEN The Sector Review has been published by the The Swedish Federation of Con- Foreword by Magnus Höij, Swedish Federation of Consulting Engineers sulting Engineers and Architects and Architects (STD-företagen) since 1995. It is (STD-företagen) is an employer and Managing Director, STD-företagen 4 a compilation of the architectural, engineering sector-oriented organisation that Five current trends 4 consultancy and industrial consultancy sectors represents the interests of innovative in Sweden, the Nordic countries and Europe. companies in the knowledge-intensive The Review presents ranking lists of the largest service sector. It is our task to create THE SWEDISH MARKET 6 corporate groups on the respective markets, the preconditions necessary for a interesting key business ratios, news about world-leading architectural and engi- Sector development 2017 and 2018 6 structural transactions and information on the neering sector. Development by sectors 7 development and economy within the sector The Swedish Federation of Consult- over the past year. ing Engineers and Architects was Interview, Gert Wingårdh, Wingårdhs 10 Since 2005, STD-företagen’s counterparts founded in 1910 so we have a long his- A comparison with other consulting industries 12 in the neighbouring Nordic countries have con- tory of driving change through innova- tributed to the Review. The organisations that Interview, Tore Strandgård, Incoord 13 tive design work that is developed into participate in this cooperation are FRI in Den- Key figures for the largest cutting-edge solutions. We represent mark, RIF and Arkitektbedriftene (Architects’ Swedish consulting groups 14 association) in Norway, SKOL in Finland and the interests of 765 member firms that FRV and SAMARK (Architectural association) together have some 37 000 employees, Interview, Johanna Frelin, Tengbom 15 in Iceland. which is two thirds of the sector’s The 50 largest architectural groups 16 total personnel force. We are part of The figures in the Review are based on the The 50 largest industrial consultancies 17 latest available data that we have been able to Almega, which is Sweden’s leading find on the respective firms. For just over half organisation for service firms and the Interview, Mikael Vatn, Etteplan Sweden 18 the firms the review is equivalent to a calendar largest association within Svenskt Swedish structural deals 19 closing for 2017. The remaining firms have split Näringsliv (Confederation of Swed- The 30 largest groups in Sweden 21 financial years. In most cases, we have received ish Enterprise). Almega organises the their annual reports for 2017/18. However, some activities of over 10 700 member firms Sweden’s 300 largest groups 22 annual accounts were not ready when work on in some 60 different sectors. the collection of basic data came to an end, for We offer service and advice in example for those companies whose annual THE NORDIC MARKET 28 employer and sector-related matters. accounts close at the end of August. In these We focus on a number of important key Nordic comparison of key figures 30 cases, we have retained the same figures as for 2016/17. For the sake of simplicity, we refer to areas in order to create the conditions Interview, Mickey Johansson, WSP Sweden 32 necessary for our member firms to the compiled figures that applied for 2017. The 10 largest groups in the Nordic region 33 The corporate information in the Review function both as professional partners has been acquired via the databases Soliditet and as employers. The 50 largest architectural (Sweden) and Factiva Dow Jones Companies & groups in the Nordic region 34 Executives (Europe), from the Nordic organisa- FRI – the Danish market 35 tions, direct from companies or via the com- MAGNUS HÖIJ Interview, Ib Enevoldsen, Ramboll Denmark 38 panies’ home pages. The monitoring covers MANAGING some 2,000 companies in Sweden, the Nordic DIRECTOR Denmark’s 100 largest groups 40 SVENSKA TEKNIK& Area and Europe. Collecting the information is RIF – the Norwegian market 42 an extensive and time-consuming task, and in DESIGNFÖRETAGEN some cases it is impossible to obtain reliable Interview, Øyvind Mork, Asplan Viak AS 43 information. The information on the interna- AB – the Norwegian market 46 tional companies is more difficult to access. In Interview, Siri Bakken, Oslo Works & NTNU 48 Sweden, annual reports are public documents. This is not the case in all countries, and many DAVID CRAMÉR Norway’s 100 largest groups 50 firms are reluctant to disclose their figures. In MARKET ANALYST SVENSKA TEKNIK& FRV – the Icelandic market 52 these cases, we use the most recent material DESIGNFÖRETAGEN we can find. Consequently, all companies that Iceland’s 20 largest groups 54 appear in – or should appear in – the Review Interview, Tryggvi Jónsson, Mannvit 56 are requested to contact STD-företagen and to SKOL – the Finnish market 57 submit their details in order to make sure that the information published on them is correct. MIKAEL VATN Interview, Jyrki Keinänen, AINS Group 58 CEO ETTEPLAN We would like to thank those companies SWEDEN AND Finland’s 100 largest groups 60 that have helped us by submitting their annual CHAIRMAN OF reports or figures! SVENSKA TEKNIK& We would especially like to thank Mikael DESIGNFÖRETAGEN THE INTERNATIONAL MARKET 62 Vatn (Etteplan Sweden), Kaj Möller (Sweco International), Johanna Frelin (Tengbom), International development 64 Mickey Johansson (WSP), Tore Strandgård Cover photo: New Beacons; the winning bid Profit margin development, (Incoord), Gert Wingårdh (Wingårdhs), Tryggvi for the design of stations and towers in the new Europe’s 200 largest groups 64 Jónsson (Mannvit), Siri Bakken (Oslo Works & Gothenburg city-funicular. Produced by UNStudio World’s 10 largest groups 64 NTNU), Øyvind Mork (Asplan Viak), Ib Enevold- and Kjellgren Kaminsky Architecture. sen (Ramboll Denmark) och Jyrki Keinänen Picture: UNStudio. Listed consultancies – a comparison 65 (AInsinöörit) for their contributions to the report Interview, Kaj Möller, Sweco International 66 through the interviews! Swedish Federation of Consulting Engineers and Architects (Svenska Teknik&Designföretagen) in Europe’s 50 largest architectural groups 67 DAVID CRAMÉR cooperation with Pär Ek Grafisk Form (Graphic Europe’s 200 largest groups 68 MARKET ANALYST design). SVENSKA TEKNIK&DESIGNFÖRETAGEN Printing: Brandfactory Stockholm 2018 [email protected] +46 8 762 67 02 Translations: JNG Ainscough HB SECTOR REVIEW • THE SWEDISH FEDERATION OF CONSULTING ENGINEERS AND ARCHITECTS • DECEMBER 2018 3 FOREWORD A DESIRED FIVE CHANGE AT THE RIGHT CURRENT TIME TRENDS At present, our sector is undergoing a long series of changes. Companies are being acquired. The market is being consolidated. Companies are being professionalised. Globalisation is becom- ing increasingly evident. They say that change should preferably be made from a position of strength, and not from one of weakness. Currently, the companies within Svenska Teknik&Designföretagen (the Swedish Federation of Consulting Engineers and Architects) – often advisory engineering and architectural firms – have a very strong position on the market. It has been a very good economic situation for housing construction, for the infrastruc- ture and for the needs of industry for smart services and development support. Therefore, the changes in our sector are taking place at a time when we can go from an already strong position and make INNOVATION ARTIFICIAL INTELLIGENCE companies even stronger in both national and international competition. It is also claimed that changes should There is a growing need for new solu- There is no doubt whatsoever that be made because you want to, and not tions in all areas. This is true with regard artificial intelligence, AI, is becoming because you have to. Frequently, companies or sectors are to building, urban and rural planning increasingly capable and has the ca- forced to make changes as a result of deteriorating markets, shifts in technol- and to the business sector in general. pacity to do more. Things that we once ogy or other developments in the world And to an ever growing extent, com- considered impossible for a machine around us. In our case it is a combination of curiosity, insight and new demands on panies and organisations need help to do are nowadays carried out by the part of clients that have made it pos- with their innovation processes and in IBM’s or Google’s machines without sible for our companies to develop.