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Engineering: issues, challenges and opportunities for development ...

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AN OVERVIEW OF ENGINEERINGengineering services in the broadest sense, as well as industrialconsultancy. Given this perspective, <strong>and</strong> faced with the needto quantify in detail industry activity at the national level tosum up the global dem<strong>and</strong> <strong>for</strong> consulting engineering services,FIDIC has developed a top-down macroeconomic approachbased on investments to estimate the global dem<strong>and</strong>. This isof sufficient importance to discuss in more detail.FIDIC’s role in quantifying the consultancy industryThe WTO GATS classification: Bottom-up industry dataConsulting engineers are generally recognized as supplying technologybased intellectual services <strong>for</strong> two broad market sectors:the built environment (comprising buildings, infrastructure<strong>and</strong> the environment), <strong>and</strong> industry (involving manufacturing,equipment <strong>and</strong> process plant). Since industry also involvesthe built environment it is convenient to distinguish consultingengineering in terms of architectural <strong>and</strong> engineering (A&E)services <strong>and</strong> product engineering (or industrial consultancy).These services may be supplied a) internally by organizationsresponsible <strong>for</strong> a project or <strong>for</strong> supplying plant <strong>and</strong> equipmentto a project, or b) externally by both specialized <strong>and</strong> multidisciplinaryfirms coming from consulting engineering <strong>and</strong> otherindustries. The General Agreement on Trade in Services (GATS)is a treaty of the World Trade Organization (WTO) that hasbeen the focus of most recent discussion on quantifying theindustry’s importance. The GATS Services Sectoral ClassificationList MTN.GNS/W/120 spreads engineering services overonly two categories:■■Professional Services, namely Architectural, <strong>Engineering</strong>,Integrated <strong>Engineering</strong> <strong>and</strong> Urban <strong>and</strong> L<strong>and</strong>scaping Services(collectively called ‘A&E Services’) provided by qualifiedarchitects <strong>and</strong> engineers.Construction <strong>and</strong> Related <strong>Engineering</strong> Services, which referto physical construction <strong>and</strong> related engineering works <strong>and</strong>are classified as Construction Services.Numerous commentators have pointed out that:a)Construction Services involve Professional Services, <strong>and</strong>vice versa.b) Some A&E Services are not included, such as services pro-vided by surveyors, topographical engineers, constructioneconomists <strong>and</strong> quantity surveyors.c) <strong>Engineering</strong> services are required in other services sec-tors – including under the W/120 Environmental Servicescategory <strong>and</strong> Professional Services classified underthe Computer <strong>and</strong> Related Services category as well asunder Other Business Services (mining, manufacturing,fisheries, agriculture, testing, energy distribution, securityequipment maintenance, building services; managementconsulting) – all of which are very much the domain ofconsulting engineers.d) Industrial consultancy services <strong>for</strong> engineered machinery(St<strong>and</strong>ard Industrial Classification SIC 353-9; SIC 361-6)are a major category in some countries’ national statisticsbut have no W/120 equivalent here.Given the evident confusion, the question there<strong>for</strong>e is whetherexisting statistical databases can give a reasonably accuratepicture of consulting engineering that does justice to theindustry’s importance.National sector statistics: A&E Professional ServicesRegarding W/120 A&E Professional Services, it has been notedthat International St<strong>and</strong>ard Industrial Classification of all EconomicActivities (ISIC) categories <strong>for</strong> Professional <strong>and</strong> OtherBusiness Services (ISIC 882 Architectural, engineering <strong>and</strong>other technical activities), upon which many national statisticsare based, correspond to the W/120 A&E Services (CPCCodes 8671-4). In turn, the W/120 A&E Professional Services(CPC Codes 8671-4) correspond to the International LabourOrganization’s International St<strong>and</strong>ard Classification of OccupationISCO-88: 214. Thus, there is a possibility that nationalstatistics based on engineering disciplines are in some casessufficiently disaggregated to be able to measure W/120 A&EProfessional Services.National sector statistics: Construction <strong>and</strong> relatedengineering servicesRegarding W/120 Construction <strong>and</strong> Related <strong>Engineering</strong>Services (CPC 512-7), it is also noted that they correspondto ISIC Construction <strong>and</strong> <strong>Engineering</strong>-Related Services (ISIC501-5), which <strong>for</strong>m the basis <strong>for</strong> many national statistics.UNCTAD has separated Construction <strong>and</strong> Related <strong>Engineering</strong>Services into ‘Construction <strong>and</strong> Related <strong>Engineering</strong>Services <strong>for</strong> A&E Design’ <strong>and</strong> ‘Construction <strong>and</strong> Related<strong>Engineering</strong> Service <strong>for</strong> Physical Construction’. The latter isaccurately reflected in:■■ISIC Revision 3 Construction (ISIC 451-5) covering allaspects of physical construction of a building (site preparation;building of complete constructions or parts thereof;civil engineering; building installation; building completion;renting of construction or demolition equipment withoperator).Extended Balance of Payments Services (EBOPS) 249 coveringsite preparation <strong>and</strong> general construction <strong>for</strong> buildings<strong>and</strong> other structures, construction work <strong>for</strong> civil engineering,as well as installation <strong>and</strong> assembly work. It alsoincludes repairs, renting services of construction or demoli-141

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