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January 2018
Industrial Engineering and Automation Services
Sectorwatch
The market for industrial engineering & automation services continues to evolve, as technological advancements are driving industry firms to adapt services and solutions. Firms that have traditionally offered process engineering solutions have expanded to software, controls, and integration solutions, while firms that had historically focused on software and IT services, have moved to offer more comprehensive automation solutions to their customers. Expect M&A activity to continue in the sector as firms look to enhance their service offerings and market reach.
Industry Trends:
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants
