Industry insights and figures Architectural and engineering activities; technical testing and analysis

Operating margin
35.4 %
▲ +1.8pp
2020
Companies
206148
2020

Key insights Architectural and engineering activities; technical testing and analysis

Actionable signals from current data
IT
Average operating result: 35.4% of revenue (2020).
Personnel costs: 17.9% of revenue (2020).
Number of companies: 206,148 (2020).

Sector outlook Architectural and engineering activities; technical testing and analysis

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Architectural and engineering activities; technical testing and analysis sector across Italy comprises approximately 206,148 enterprises employing about 86,479 people and generating €22.6 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 robust operating margin of 35.4% of revenue in 2020, the sector reports €8.0 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

The Architectural and engineering activities; technical testing and analysis cost mix is reasonably balanced: cost of revenue at 56.0%, personnel at 17.9% and energy at – of turnover. Without a single dominant cost driver, margin management requires attention across the full operating envelope rather than focus on any one line.

Trend & trajectory

Over the period 2008 to 2020 the operating margin moved from 42.0% to 35.4% (-6.6 percentage points), a deteriorating trajectory that warrants attention. 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 Architectural and engineering activities; technical testing and analysis

Sector average % of revenue
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Cost structure for Architectural and engineering activities; technical testing and analysis 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) 13.0% 13.7% 14.1% 18.4% 14.9% 16.0% 17.4% 15.5% 16.4% 17.7% 18.0% 17.4% 17.9%
Gross wages 9.4% 9.9% 10.2% 13.3% 10.9% 11.7% 12.6% 11.4% 12.1% 13.1% 13.2% 12.8% 13.1%
Social and pension contributions 3.6% 3.8% 3.9% 5.1% 4.1% 4.3% 4.8% 4.1% 4.3% 4.6% 4.8% 4.6% 4.8%
Other costs 45.0% 50.2% 45.7% 43.4% 51.2% 46.7% 44.6% 51.8% 50.3% 44.8% 46.5% 49.0% 46.7%
Gross operating surplus (EBITDA) 42.0% 36.1% 40.2% 38.2% 33.8% 37.3% 38.0% 32.7% 33.3% 37.5% 35.5% 33.6% 35.4%
Depreciation 3.2% 3.5% 3.4% 4.2% 3.9% 4.1% 4.4% 3.8% 3.8% 4.7% 4.1% 4.0% 4.2%
Operating result (EBIT) 38.9% 32.6% 36.7% 34.0% 30.0% 33.2% 33.6% 28.9% 29.4% 32.8% 31.4% 29.6% 31.1%

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

Operating result over 13 years

Sector average % of revenue
Average
36.4%
Peak
42.02%
2008
Low
32.69%
2015
Latest
35.37%
2020

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Architectural and engineering activities; technical testing and analysis (2020)

Recommended next steps

Based on the latest available data for Architectural and engineering activities; technical testing and analysis