Industry insights and figures Civil engineering

Operating margin
8.9 %
▲ +0.6pp
2020
Companies
5996
2020

Key insights Civil engineering

Actionable signals from current data
IT
Average operating result: 8.9% of revenue (2020).
Personnel costs: 19.7% of revenue (2020).
Number of companies: 5,996 (2020).

Sector outlook Civil engineering

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Civil engineering sector across Italy comprises approximately 5,996 enterprises employing about 90,259 people and generating €21.8 bn in net turnover in 2020. The average enterprise size is – employees per firm. This is a useful yardstick when assessing whether your own operation sits within the typical scale band of the sector.

Profitability

With a healthy operating margin of 8.9% of revenue in 2020, the sector reports €1.9 bn of gross operating surplus (Eurostat's EBITDA-equivalent, before depreciation). This figure provides the headline benchmark against which an individual operator can sanity-check their own bottom line, values significantly below indicate cost or pricing pressure, those above suggest competitive advantage worth defending.

Cost structure

Cost of revenue dominates the Civil engineering P&L at 77.7% of turnover, reflecting the high material and input content of activities in this sector. Personnel costs account for 19.7%, with energy purchases adding –. Procurement efficiency and contract management are therefore the two strongest profit levers for operators in this segment.

Trend & trajectory

Over the period 2008 to 2020 the operating margin moved from 9.1% to 8.9% (-0.3 percentage points), broadly stable performance. Sectors with stable or improving margins tend to reflect successful pass-through of input costs and disciplined capacity management; declining margins typically point to either over-supply or a structural cost squeeze that warrants strategic review.

Costs by category Civil engineering

Sector average % of revenue
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Cost structure for Civil engineering in IT, 2008 to 2020, expressed as percentage of revenue.
Revenue / costs 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 17.0% 18.2% 18.0% 18.0% 16.7% 16.1% 15.8% 16.9% 17.0% 20.6% 19.5% 19.4% 19.7%
Gross wages 11.7% 12.5% 12.5% 12.5% 11.6% 11.0% 10.9% 11.5% 11.9% 14.5% 13.7% 13.3% 13.7%
Social and pension contributions 5.3% 5.7% 5.5% 5.6% 5.1% 5.1% 4.9% 5.3% 5.0% 6.1% 5.8% 6.1% 6.1%
Other costs 73.9% 74.3% 73.8% 74.3% 76.4% 76.6% 77.7% 74.8% 75.6% 71.9% 73.7% 72.3% 71.4%
Gross operating surplus (EBITDA) 9.1% 7.5% 8.2% 7.7% 7.0% 7.3% 6.5% 8.3% 7.5% 7.6% 6.9% 8.3% 8.9%

Source: Eurostat Structural Business Statistics (latest available year).

Operating result over 13 years

Sector average % of revenue
Average
7.7%
Peak
9.11%
2008
Low
6.49%
2014
Latest
8.86%
2020

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Civil engineering (2020)

Recommended next steps

Based on the latest available data for Civil engineering