Architecture, Engineering, and Related Services [NAICS 5413]

UNESCO (2010). Engineering: Issues, Challenges and Opportunities for Development. Available from:
http://unesdoc.unesco.org/images/0018/001897/189753e.pdf
NAICS 541360 – GEOPHYSICAL SURVEYING AND MAPPING
NAICS Description:
“This industry comprises establishments primarily engaged in gathering, interpreting, and mapping
geophysical data. Establishments in this industry often specialize in locating and measuring the
extent of subsurface resources, such as oil, gas, and minerals, but they may also conduct surveys for
engineering purposes. Establishments in this industry use a variety of surveying techniques
depending on the purpose of the survey, including magnetic surveys, gravity surveys, seismic
surveys, or electrical and electromagnetic surveys.”
From the US Commercial Census
SMALL BUSINESS MARKETPLACE
Firms in the Geospatial Surveying and Mapping Industry face a variety of factors that make this
industry volatile. The industry is highly competitive, subject to the demand of down-stream
industries, is deeply affected by changes in technology, and is subject to strict regulatory
requirements. These factors contribute to high barriers for entry into the market and increasing
levels of consolidation in the coming years.
COMPETITION
This industry is characterized by many small establishments that are often in territorial competition
with each other. A 2011 report estimates that the four largest firms in this industry generate 51% of
the total industry revenue (IBISWORLD), but 67% of firms operating in this space have fewer than 5
employees. A different report from 2011 analyzed a population of approximately 5000 firms, 4,700
of which are classified as small businesses, or under 25 employees (BizMiner).
The larger firms and smaller firms have very different strategy models, where often the larger firms
establish contracts with the companies they survey for that allow for them to keep the data after
commissioned. The smaller firms must usually enter into agreements that give the client exclusive
rights to the data of the territory in question. Thus, while larger firms can leverage their special
contract and create data packaging services, smaller firms must differentiate themselves through
professional reputation and technical sophistication, and operate at a territorial service level
(IBISWORLD).
Firms in the Geophysical Surveying and Mapping industry must also face competition from outside of
the industry. Many energy and mining companies have their own internal teams who perform the
same function as independent contractors, and this is projected to increase by 2016.
DOWNSTREAM VOLATILITY
9