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The Market Analysis of Engineering Service in China

Publish:2017-03-27

The engineering consultancy is a technology- and knowledge-demanding and interdisciplinary/ multi-subjects service, which includes many services such as planning and advisory, project design and prospection, project management. It aims to provide professional assistance to the policy-making and execution of engineering projects. 


An Overview of the Global Market of Engineering Service

    As one of the technology- and knowledge-demanding industries, engineering service is closely related to economic, technological and social developments in a given country or region. Typically, it has a positive correlativity with the economic and technological environment. Developed countries and regions, like America, England, France, Germany and other European countries are relatively powerful in this field and have occupied the primary shares in the global market of engineering service. Nevertheless, with global economic integration, more and more developing countries, such as India, Malaysia and China, are starting to launch supportive policies to encourage the development of its engineering service. Despite of its maturity in western countries, the engineering service is at its incipient stage in China. In Guangdong area, there are few companies that can provide this type of service. 

An Overview of the Development of Engineering Service in China 
    Engineering service mainly provides preliminary consultancy, design, detection and management for construction projects. It is tightly linked to the scale of investment in fixed assets. In the past few years, the volume of fixed assets investment have increased rapidly, laying a solid foundation for the growth of engineering service. 

                              The Gross Income of China’s Engineering Service (Unit: 100 Million)

  

中国工程技术服务行业收入规模(单位:亿元)



The Investment Case of European Buyers Council 

     Based on the current market situations, European Buyers Council has launched a localized project of engineering service. It integrates multiple services like temporary employment, technical support, project management and consultancy. 
    This project is co-carried out in China by a leading European high-tech engineering service provider and European Buyers Council. This engineering provider has four main offices including the headquarter in the German-speaking countries, and five branch offices in Eastern Europe. Its 700+ highly qualified technicians, from the areas of engineering and computer science, are capable to create innovative products, lean production processes or smart services for company upgrading. Judging from a company’s operation status and developing plan, the engineering service provider can dispatch perfectly-matching experts to that company. During the past years, it has built up lasting relationships with numerous well-known clients all over Europe, like DSM Fine Chemicals, SML Maschinengesellschaft, Austro Engine, A TEC GRECO National, CNH Instruments or Bundesrechenzentrum GmbH. Its turnover in 2016 reaches 50 million Euros ( about 360 million rmb). Currently, the owner of this company is ready for retirement and decides to sell 49% of company shares, which is around 30 million Euros (about 220 million rmb). This decision also concerns to this company’s expansion strategy in China to establish its own legal unit. 


     

    Recently, there has been a growing trend in China to develop high-technology, qualified products and automated production. However, there is no company offering the service of providing European experts directly to Chinese companies. The potential of China’s engineering service market is considerably powerful. With a legal entity in China by the abovementioned service provider, the European Buyers Council will actively search for strategic investors while participating in the sales and marketing of this project. Both parties would like to invite Chinese investors to be part of the project, providing local knowledge and network. In next five years, the newly-founded Chinese entity would expand its business from the Pearl River Delta to the whole Guangdong and other new provinces. Its turnover, hopefully, will reach a ten-time increase, reaching 77,857,142.86 by the year of 2022. 


    Based in Stuttgart, Germany, European Buyers Council is a professional service provider for suppliers and buyers. Our goal is to strengthen the cooperative relations between different countries and regions, especially between Chinese and European associations and enterprises, and to establish long-lasting trading ties.





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