A Review on Engineering and Design Businesses in Australia

According to IBISWORLD, the total revenue of engineering businesses in Australia was calculated to be about $50 billion, which is significantly lower than that of construction businesses. The Australian Bureau of Statistics (ABS) reported that the total revenue of construction businesses in 2023–2024 was approximately $633.6 billion, created about 1.3 million jobs and responsible for 7% of Australia's GPD. Overall, the number of engineering businesses in 2024 was 46848 compared to 31270 in 2014.

The structure of construction engineering businesses in Australia is like that in the UK: the number of large companies is exceedingly small, while the number of small companies is remarkably high. Large companies are typically long-established, international, and often foreign owned. They are well-funded, equipped with advanced technology, and have access to accurate and comprehensive information, which makes them industry leaders. Competing with these companies for large-scale projects is extremely difficult, if not impossible. Permanent positions in such firms are also highly competitive, leaving limited opportunities for engineers to pursue work that genuinely interests them. On the other hand, there are numerous opportunities for investors to establish private businesses. However, for new and inexperienced engineers, obtaining a license is challenging. It requires persistence and effort, strong networking and experience.

In practice, large companies often secure major contracts and subcontract portions of the work to smaller firms. They divide projects into smaller packages, provide financing, and manage overall resources to maximize profits. By contrast, small companies primarily function as project implementers and receive fewer benefits. Many of them also collaborate with overseas firms that offer cheaper labour, enabling them to manage large projects with small workforces. The number of multidisciplinary firms that both design and build are very limited, smaller businesses often enjoy greater flexibility, allowing them to operate according to their own capacities and goals, while maintaining efficiency. Their ability to deliver large projects quickly with minimal labour is due to this operational freedom and their use of skilled, cost-effective external workforce.