A REPORT FROM THE FEDERATION OF SWEDISH INNOVATION COMPANIES DECEMBER 2019 XXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXX A Swedish, Nordic and International Survey of The Consulting Engineering and Architectural Groups KEY FIGURES 2018 (2017) 94.5 The sector turnover in Sweden was SEK 94.5 billion (SEK 86 billion) billion 8 The increase in turnover was 8 % compared to 2017¹ percent 26.5 Swedish groups generated revenues of SEK 26.5 billion billion in subsidiaries abroad (SEK 17.4 billion) 72 700 The industry had a total of 72700 employees employees in Sweden (66 200) 7 Personnel growth was 7 % compared to 2017² percent 22 400 Swedish groups employed 22400 persons employees in subsidiaries abroad (16000) 11 200 The industry consisted of some 11200 companies in Sweden companies SEK 1 324k Turnover per employee was SEK 1324k (1218k) * 7.1 The average operating margin (EBITA) was 7.1% (7.4%) * percent 6.9 The average profit margin (EBT) was 6.9% (7.1%) percent 5.1 The average net margin was 5.1% (4.7 %) percent 34 The share of women within the industry was 34% (35%) percent 1 In this year’s review, companies with a collective turnover of SEK 1.3 billion have been added to the survey. Therefore, the real growth rate is 8% and not 10%. 2 In this year’s review, companies that collectively employ 1800 persons have been added to the survey. Therefore, the real growth rate is 7% and not 10%. * The key figures are calculated from the figures of the 300 largest firms, that jointly represent 79% of the industry’s total turnover and 77% of all personnel within the industry. THE SECTOR CONTENTS REVIEW The Sector Review has been published by About Innovationsföretagen 4 Innovationsföretagen (Federation of Swedish Foreword by Magnus Höij, Innovation Companies), formerly Svenska Director General Innovationsföretagen, 5 Teknik&Desigföretagen (the Swedish Federation of Consulting Engineers and Architects) since 1995. Member company activities 6 It is a compilation of the architectural, engineering consultancy and industrial consultancy sectors in THE SWEDISH MARKET 8 Sweden, the Nordic region and Europe. The Review presents ranking lists of the largest corporate Sector development 2018 and 2019 8 groups on the respective markets, interesting key Development by sectors 9 business ratios, news about structural transactions Interview, Erik Landgren, Kiwa Inspecta 13 and information on the development and economy within the sector over the past year. A comparison with other consulting industries 14 Since 2005, Innovationsföretagen’s counterparts Interview, Sara Lindmark, i3tex 15 in the neighbouring Nordic countries have contribu- Key figures for the largest ted to the Review. The organisations that participate Swedish consulting groups 16 in this report are FRI in Denmark, RIF & Arkitektbe- Interview, Charlotte Bergman, ELU Konsult 17 driftene (the architectural association) in Norway, SKOL & ATL (the architectural association) in Finland The 50 largest architectural groups 18 and FRV & Samark (the architectural association) on The 50 largest industrial consultancies 19 Iceland. Interview, Per-Henrik Johansson, Liljewall 20 The figures in the Review are based on the latest available data that we have been able to find on the Swedish structural deals 25 respective firms. For more than half the firms, figures Interview, Viktor Svensson, Rejlers 26 presented correspond to annual reports for 2018. The 30 largest groups in Sweden 27 The remaining firms have split financial years. In most cases, we have received their annual reports Sweden’s 300 largest groups 28 for 2018/19. We report figures from last available annual report. In some cases those are 2017/2018. THE NORDIC MARKET 34 For the sake of simplicity, we refer to the compiled Nordic comparison of key figures 36 figures as for 2018. The corporate information in the Review has been The 10 largest groups in the Nordic region 37 acquired via the databases Soliditet (Sweden) and The 50 largest architectural Factiva Dow Jones Companies & Executives (Eu- groups in the Nordic region 38 rope), from the Nordic organisations, directly from FRI – the Danish market 39 companies or via the companies’ home pages. The survey covers some 2,000 companies in Sweden, Interview, Søren Adamsen, COWI 42 the Nordic region and Europe. Collecting the infor- Denmark’s 100 largest groups 44 mation is an extensive and time-consuming task, RIF – the Norwegian market 46 and in some cases it is impossible to obtain reliable information. The information on the international Interview, Geir Syrtveit, ViaNova 47 companies is more difficult to access. In Sweden, Interview, Grete Bergly, Multiconsult 48 annual reports are public documents. This is not the AB – the Norwegian architectural market 51 case in all countries, and many firms are reluctant Norway’s 100 largest groups 54 to disclose their figures. In these cases, we use the most recent material we can find. Consequently, all FRV & SAMARK – the Icelandic market 56 companies that appear in – or should appear in – the Interview, Sveinn Ingi Ólafsson, Verkis 57 Review are requested to contact Innovationsföreta- Iceland’s 25 largest groups 58 gen and to submit their details in order to make sure that the information published on them is correct. SKOL – the Finnish market 59 We would like to thank those companies that Interview, Jyrki Keinänen, AINS Group 60 have helped us by submitting their annual reports or ATL – the Finnish architectural market 62 figures! We would especially like to thank Charlotte Interview, Kalle Euro, ATL 62 Bergman (ELU Konsult), Sara Lindmark (i3tex), Erik Finland’s 100 largest groups 64 Landgren (KIWA Inspecta), Per-Henrik Johansson (Liljewall), Viktor Svensson (Rejlers), Søren Adamsen (Cowi), Grethe Bergly (Multiconsult), Geir Syrtveit (Vi- THE INTERNATIONAL MARKET 66 aNova Plan og Trafikk), Sveinn Ingi Ólafsson (Verkis), Cover photo: The reconstruction of the International development 68 Jyrki Keinänen (A-Insinöörit) for their contributions to National mueseum in Stockholm won the Profit margin development, the report through the interviews! ROT-prize (for reconstruction projects) Europe’s 200 largest groups 68 and the Steel building prize. Designed by Wingårdhs and Tengbom architects World’s 10 largest groups 68 Photo: Linn Ahlgren, Nationalmuseum. Listed consultancies – a comparison 69 DAVID CRAMÉR Europe’s 50 largest architectural groups 70 CHIEF ANALYST AND RESPONSIBLE FOR THE Innovationsföretagen in cooperation with SECTOR REVIEW AT INNOVATIONSFÖRETAGEN Pär Ek Grafisk Form (Graphic design). Europe’s 200 largest groups 71 david.cramer@innovations fore tagen.se +46 8 762 67 02 Printing: Brandfactory Stockholm 2019 SECTOR REVIEW • FEDERATION OF SWEDISH INNOVATION COMPANIES • DECEMBER 2019 3 THE FEDERATION OF SWEDISH INNOVATION COMPANIES The Federation of Swedish Innovation a need for a new narrative on the sector. Companies (Innovationsföretagen) is an Since 1 January 2019, the Federation of employer and sector-oriented organi- Swedish Innovation Companies has been 1 sation that represents the interests of a separate association within Almega innovative companies in the knowledge- and Svenskt Näringsliv (Confederation of intensive service sector. We represent the Swedish Enterprise), which clarifies our interests of some 720 member firms that role as an employer organisation and our together have some 39 000 employees. involvement in supporting the member It is our task to create the preconditions companies in agreement developments necessary for a world-leading architec- and ongoing labour law issues. tural and engineering sector. The Federation of Swedish Innova- Business operations tion Companies is part of Almega, which As a sector and employer organisation, we is Sweden’s foremost organisation for work for greater visibility and competitive- service firms and the largest association ness for the sector with the aim of creat- within Svenskt Näringsliv, (Confederation ing the best possible preconditions for of Swedish Enterprise) which both deals innovation and for our member companies. with the preconditions for the service We serve as a mouthpiece for our mem- sector and the business community in bers and drive questions relating to sector general as well as Sweden’s competitive development through information, debate 3 standing in the world. and dialogue with politicians and other We are members of several interna- decision-makers. Among the important is- tional sector organisations: FIDIC and sues facing us are research and innovation, EFCA, the respective global organisa- competence provision, balanced terms and tions for engineering consultants, and conditions, skilled public procurement, ACE – the European sector organisation sustainability and continued digitalisa- for architectural organisations. We also tion. We support our members in employer participate in the Nordic networks for in- questions, offer competitive collective dustry associations RiNord, for consulting agreements, attractive insurance schemes, engineers, and Nordiskt Praktikermöte, relevant forms of training and seminars, for architectural organisations. and publish practical handbooks. Through us, member companies also acquire a valu- Name change and federation able network of sector colleagues, experts 5 establishment and leading labour law specialists. Innovationsföretagen (The Federa- tion of Swedish Innovation Companies) Focus areas for 2020 is the new name for the organisation During 2020 we will prioritise the following that was previously known as Svenska areas: