Architecture, Engineering, and Related Services [NAICS 5413]

The large reliance on the Oil and Gas industry (66% of revenues are generated via Oil and Gas
contracts (IBISWorld)) means unstable demand for the geophysical surveying and mapping industry.
Firms that serve this industry must establish good relationships with their customers in order to
weather the crude oil market volatility. Other sectors for revenue include the mining industry (which
remains fairly steady), government contracting (also steady), and construction engineering, which
due to the housing crisis, took a bit of a dive in recent years (IBISWorld).
The overabundance of small firms and their dependency on volatile downstream markets for
revenue keeps pricing competitive, and has led to consolidation in the last few years.
ENABLING TECHNOLOGIES
Firms in this industry are often selected (or turned away) based on their technical sophistication
(IBISWorld). Those that cannot offer the latest computerized surveying methodology lose contracts
to those that can. This can be a big challenge for smaller firms, as these technical solutions require a
great deal of capital investment. The transformation that Information Systems have spurred in this
industry is will be discussed later in this paper.
REGULATORY CONSTRAINTS
In order for geophysical surveying firms to be successful and avoid penalties, they must keep close
track of a complex regulatory environment. Most regulations are centered on rules of the locality,
safety regulations, and ethical standards.
Due to the location-specific nature of this industry, firms must keep track of a variety of regulations
specific to the jurisdiction in which they operate. Regulations are in place at the municipal, state,
regional, national, and international levels. Many firms who operate in multiple jurisdictions must
know the intricacies of all localities at all levels, and are subject to license revocations and fines if
they fail to comply (ACSM, 2012).
Many of the environments where work is conducted are dangerous sites that require extensive
training and insurance. Safety regulations vary from location, type of work being conducted, and the
type of equipment being operated. Firms must comply to the safety regulations of their insurance
providers, industry associations, and governmental regulations.
There are also ethical regulations and standards in place at the government and association level
with regards to processes and procedures for data collection and intellectual property issues.
It is likely that this industry will see more regulation requirements in the coming years as a result of
increases in offshore drilling, and the safety and environmental concerns that operations of that
nature imply (IBISWorld). Firms will continue to need to navigate a complex and changing regulatory
environment.
INFORMATION SYSTEMS
Despite these challenges, IBISWorld predicted that the industry will grow in the next five years as a
result of an increase in exploratory oil drilling. It seems, however, that the advancement of more data
integration technologies in combination with the downstream market volatility will continue to raise
barriers for small contractors.
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