An exploratory empirical study of the international consulting engineering design services industry: A United States perspective

The thesis of this dissertation is that U.S. Consulting Engineering Design Services Firms appear to be losing their competitiveness in the International Consulting Engineering Design Services Market, a process that has apparently taken place in the last thirteen years. The general objective of this research was to learn more about U.S. CEDSF's and their activities in the International Markets. Specifically, the study attempted to determine the actual size of both the domestic and international markets for International Design Services, the dimensions that may be used to describe its demand structure, and the nature and extent of competition, and the influence of other macro variables in this industry. This research employed a two stage methodology. The first stage was archival and incorporated the use of the Engineering News Record (ENR) data base which was derived from published annual surveys describing this industry. The second phase involved attempts to obtain additional data through the use of written requests to ENR and other data sources. The results of the study were somewhat inconclusive. This is because accurate, meaningful measurements of market size and other key variables could not be determined from the available data. The inquiry determined that other types of firms such as Engineer-Constructors (EC's), Manufacturers, and Non Engineering Consultants have not been included in the ENR surveys. The activities of EC's, were added from 1988, and have gradually increased their significant role in this market. Data from Eximbank and the Office of the Trade and Development Program (TDP) revealed that Manufacturers are also active to a much greater degree than was originally thought. In addition, the inquiry determined that projects may be delivered using at least five different methods. These are "The Traditional Client-Consultant", "The In-House", "The PPM/CM for a Fee, and at Risk", and "The Design-Construct (aka Engineer-Construct, or Turnkey)" methods. The contribution of the latter two methods were not accounted for in any of the surveys. Finally, examination of data provided by the World Bank and Asian Development Bank (ADB) revealed that U.S. firms' share of both markets had declined significantly in the last decade, though each is considered as a growth opportunity.