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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Engineering Firm SWOT Analysis

 

Strengths

 

Engineers are always in demand in today's fast moving world of technology and construction. This is especially true in high tech industries where knowledge is growing on an exponential level. The barriers to entry for starting a new engineering firm are moderate. Usually, a capital investment of $100,000 to $200,000 is required in order to get these operations off the ground. These funds are usually required to purchase software, computers, furniture, fixtures, and equipment. The gross margins generated by engineering firms are substantial (usually in the range of 80% to 95% depending on the type of engineering discipline). Even during times of economic duress, engineering firms are generally able to remain profitable and cash flow positive. This is especially true among firms that have ongoing contracts with federal, state, and municipal agencies. It should be noted that most jurisdictions require specialized licensure in order to work as an engineer.

 

Weaknesses

 

Much like other professions that require specialized licensure, there will always be competitive issues associated with engineering firms. One of the ways that that this issue is remedied is that major engineering firms have a number of specialists on staff including civil engineers, electrical engineers, and mechanical engineers. This allows one firm to develop new technologies for specialized projects, which provides a differentiating factor for these companies. The operating costs related to operating an engineering firm are high.

 

Opportunities

 

Beyond adding specialized engineers to the payroll, the primary way that these companies grow is through the acquisition of ongoing contracts with large corporations and government agencies. This ensures a highly predictable stream of revenue that also boosts the value of the firm. Additionally, some engineering firms patent new technologies (using their own capital for research and development) with the intent to license them for a significant stream of income.

 

Threats

 

The requirements for becoming a licensed engineering firm does not often change, but as technology is expanding at a rapid rate - there may be some issues pertaining to regulatory issues in the future. However, there is only a modest chance of this happening. The only primary threat faced by engineering firms are related to other companies operating within the same industry and market segment.

 


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