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Introduction 11
Each business considers its strategy
for addressing its market taking into
consideration various factors:
• Competitive advantage – the ability of
the business to differentiate itself from
the local competition
• Resource-based advantage – the skills
and capabilities that the Group has that
may confer a unique advantage
• Operational advantage – ways in which
we may understand our business models
better and improve our products.
Atkins’ position in each of its home markets
is strong and, increasingly, multiple business
units are being brought together to deliver
complex projects in various parts of the world.
Strategic position
The environment
In the medium term, global drivers will
bring unprecedented change to the world’s
infrastructure, not least growing urban
populations and all the issues connected
with sustainability and climate change.
Quality, local understanding and breadth
of skills will therefore continue to be
in demand.
In the UK alone the market size for
engineering and design has been estimated
at nearly £14 billion 1 . The top 150 design
firms in the world generate revenue of
more than £40 billion 2 . While growth and
consolidation continues at the top end,
there remains an endless tail of small
consultancies capable of competing
for significant percentages of most
market sectors.
In the UK, the New Civil Engineer (NCE)
survey regularly puts Atkins in the top four
across a wide range of sectors. The UK
market continues to grow and Atkins is
increasing its market share. The Group has
also been successful in building meaningful
domestic businesses in the Middle East,
the US and some European markets.
Acquisitions and organic investment will
continue to be considered which deepen
the Group’s skill base and strengthen our
market position, usefully accelerating our
multi-local, multi-skill business model.
Conditions in 2008
The requirement for new and upgraded
infrastructure remains and many of our
important markets are buoyant. Competition
for resources to deliver projects is strong,
which also provides a healthy indicator of
the markets in which we work. However,
whilst we have been successful in improving
the attractiveness of Atkins as an employer
in recent years, we are also experiencing
increased upward pressure on remuneration.
Our direct exposure to the commercial
property market in the UK is limited, but
we are mindful of indirect consequences
of a prolonged downturn and the timing
of projects may be subject to some
variability in the short term.
Keith Clarke
Chief Executive
25 June 2008
1 Survey of UK Construction Professionals 2005/06 –
Davis Langdon Management Consulting, July 2007.
2 Engineering News Record, 23 July 2007.
UK Rank Company
1(1) Atkins 3 3 1 4 2 2 1 1 2 7 3 1 1 1 1 2 3 1 5
2(2) Mott MacDonald 7 2 3 9 7 4 16 5 1 1 3 2 4 3 8 2 5 2
3(3) Arup 1 10 9 13 9 10 2 3 3 3 5 13 3 10 4 5 1 12 10
4(4) WSP 2 13 2 6 5 4 4 4 9 9 6 7 2 1 7 4 19
5(5) Mouchel 6 20 1 2 5 2 18 11 3
6(6) Jacobs 14 8 2 6 3 3 7 9 1 10 4 4 9 3 9 4 2 9
7(7) RPS 1 14
8(9) Halcrow 16 15 10 16 14 1 6 2 8 8 8 5 10 5 8 6
9(8) Scott Wilson 13 12 11 10 13 3 15 7 5 6 6 4 6 17 3 14
10(10) Capita Symonds 9 7 7 14 4 9 10 2 13 14 17 7 13 9 6 13 6 12 25
Note
NCE Consultants File 2008 market rankings.
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WS Atkins plc Annual Report 2008