Industry Cluster Profile: Engineering Services
Industry Overview
The engineering services cluster includes companies that provide a full spectrum of planning, design,
development, operations, and maintenance of critical structures, machinery, and equipment. These companies
provide engineering services for all types of industries ranging from construction and transportation to
manufacturing and energy. More specifically, the cluster includes companies that implement complex projects
from initial concept to delivery and operation and provide consultancy services, prepare feasibility studies,
prepare preliminary and final plans and designs, provide technical services during the construction or installation
phase, inspection and evaluation of engineering projects, and related services. This industry cluster report includes
companies involved in all aspects of engineering services, as opposed to engineering occupations since engineers
may be employed in a full range of industries.
The Denver South1 region is a world-class hub for engineering services companies and industry activities. The
region is home to one of the highest concentrations of engineering services employment anywhere in the nation.
Additionally, many world-renowned engineering leaders such as CH2M and Merrick & Company are located in
the region. With nearly 6,590 engineering services workers in more than 320 companies, the Denver South region
had the highest employment concentration in 2014 out of the 50 largest metropolitan areas. The Denver South
region was followed by the Houston-The Woodlands-Sugar Land metropolitan statistical area (MSA), the Kansas
City, Mo.-Kan. MSA, the Richmond, Va. MSA, and the Virginia Beach-Norfolk-Newport News Va.-N.C. MSA.
Indeed, roughly 25 percent of all engineering services employment in the nine-county Metro Denver and Northern
Colorado region2 is located in the Denver South region. Notable company announcements in 2014 included:
 ThyssenKrupp Industrial Solutions, a global engineering services and technology company, will expand
its Plaza Town One office in Greenwood Village. The company expects to add nearly 257 new positions
when the expansion is complete.
 URS Corporation was purchased by Los Angeles, Calif.-based AECOM Technology Corporation. The $6
billion deal will diversify and broaden AECOM’s market presence, as URS brings strong expertise in end
markets such as oil and gas, power, and government services. URS also adds to AECOM’s construction
capabilities, deepening a core competency that AECOM can leverage across the globe. The combined
companies have nearly 1,700 Colorado employees and 100,000 worldwide.
 The Colorado Department of Transportation selected Mountain Corridor Constructors LLC, a partnership
led by AECOM Technology Corporation, formerly URS Corporation, and supported by Lawrence
Construction Co., as the construction manager and general contractor to add a peak-period shoulder lane
to Interstate 70. The $47 million project will add a toll lane to the shoulder of the eastbound side existing
highway and will run from the junction of Interstate 70 and U.S. 40 to the western side of the Twin
Tunnels. The project is slated for completion by October 2015.
 Douglas County-based CH2M was named to the 2014 Fortune 500 list and to Forbes’ “America’s
Largest Private Companies 2014” list. The company posted revenue of nearly $5.9 billion in 2014.
Engineering Services Economic Profile
The engineering services cluster includes companies that apply physical laws and principles of engineering in the
design, development, and utilization of machines, materials, instruments, structures, processes, and systems. The
engineering services cluster consists of one, six-digit North American Industry Classification System (NAICS)
code (541330).
1
The Denver South region consists of zip codes 80111, 80112, 80124, 80126, 80129, 80130, 80134, and 80237.
The nine-county Metro Denver and Northern Colorado region consists of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson, Larimer,
and Weld Counties.
2
April 2015 | Page 1
Industry Cluster Profile: Engineering Services
Engineering Services Employment and Company Profile, 2014
Denver South
6,590
United States
1,090,430
320
98,070
One-year direct employment growth, 2013-2014
2.5%
0.5%
Five-year direct employment growth, 2009-2014
15.9%
3.3%
Avg. annual direct employment growth, 2009-2014
3.0%
0.7%
Direct employment concentration
2.8%
0.8%
Direct employment, 2014
Number of direct companies, 2014
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Engineering Services Employment
The Denver South region’s engineering
services employment (6,590 workers) rose
2.5 percent in 2014, compared with the
previous year’s level, adding 160 new jobs
over the same period. National employment
levels increased 0.5 percent over-the-year.
Engineering services companies employed
2.8 percent of the region’s total employment
base, compared with a 0.8 percent
employment concentration nationwide.
Approximately 320 engineering services
companies operated in the Denver South
region in 2014. Nearly 71 percent of the
region’s engineering services companies
employed fewer than 10 people, while 0.9
percent employed 250 or more.
Engineering Services
Number of Employees Growth Rate
15%
10%
5%
0%
-5%
-10%
2009
2010
2011
Denver South
2012
2013
United States
2014
Avg Annual
Growth
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2007-2010; Market Analysis Profile, 2011-2014.
April 2015 | Page 2
Industry Cluster Profile: Engineering Services
Engineering Services Employment by County, 2014
Denver
18.5%
Douglas
41.8%
Arapahoe
39.7%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Engineering Services Employment by Industry Sector, 2014
Sanitary
Petroleum, mining, engineering
services
& chemical
0.4%
engineering services
0.6%
Industrial
engineering
services
2.1%
Construction &
civil engineering
services
4.1%
Engineering
services
71.9%
All other
engineering
services
20.8%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Major Engineering Services Companies





AECOM (formerly URS Corp.)
www.aecom.com
ARCADIS
www.arcadis.com
Black & Veatch
http://bv.com
Burns & McDonnell Engineering
www.burnsmcd.com
CH2M
www.ch2m.com





Chicago Bridge & Iron Company
www.cbi.com
Merrick & Company
www.merrick.com
Samuel Engineering
www.samuelengineering.com
Stanley Consultants
www.stanleyconsultants.com
Thyssenkrupp Industrial Solutions
www.thyssenkrupp.com
April 2015 | Page 3
Industry Cluster Profile: Engineering Services
Engineering Services Workforce Profile
Many companies choose locations because of
the available workforce. With nearly half of
the nine-county region’s 3.6 million residents
under the age of 35, employers can draw from
a large, young, highly educated, and
productive workforce. Of the region’s adult
population, 41.2 percent are college graduates
and 90.5 percent have graduated from high
school. The state has the nation’s second-most
highly educated workforce as measured by the
percentage of residents with a bachelor’s
degree or higher.
The attractiveness of the region draws new
residents through migration. The region’s
population is expected to grow 53.3 percent
from 2010 to 2040, driving a 36.3 percent
increase in the region’s labor force over the
same period. It is important to note the
changing composition of the workforce supply
as the baby boomers begin to retire, which will
pose implications for businesses whose
employee pool includes significant numbers of
these workers.
The Denver South region’s engineering
services industry employs nearly 6,590 people
and includes a large pool of talented, welleducated, and highly skilled workers.
Compared with the age distribution across all
industries, the engineering services cluster in
the nine-county region has a larger share of
employees that are between the ages of 25 and
64 years old.
Educational Attainment of Metro Denver and Northern
Colorado's Population Age 25 and Older
3.9%
Less than 9th Grade
5.6%
15.3%
9th to 12th Grade, No
Diploma
20.0%
High School Graduate
(includes equivalency)
Some College, No Degree
25.9%
Associate Degree
Bachelor’s Degree
21.7%
7.7%
Graduate or Professional
Degree
Source: U.S. Census Bureau, 2013 American Community Survey.
3,000,000
Metro Denver and Northern Colorado's Labor Force Projections
by Age
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2010
16-24
25-34
2020
35-44
2030
45-54
55-64
2040
65+
Source: Colorado Division of Local Government, State Demography Office.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
30%
The engineering services workforce supply
25%
consists of four main components: those
currently working in the industry; those doing
20%
a similar type of job in some other industry;
15%
the unemployed; and those currently in the
education pipeline. The Metro Denver and
10%
Northern Colorado Occupation & Salary
5%
Profile below includes the 10 largest
engineering services occupations in the region.
0%
For these 10 largest occupations, the chart
16-24
25-34
35-44
45-54
55-64
65+
Engineering Services
All Industries
details the total number of workers employed
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
in that occupation across all industries, the
Extended Proprietors - EMSI 2014.4 Class of Worker.
number of available applicants that would like
to be working in that occupation, the number of recent graduates that are qualified for that occupation, and the
median and sample percentile annual salaries.
April 2015 | Page 4
Industry Cluster Profile: Engineering Services
Wages
The 2013 average annual salary for an engineering services worker in the nine-county region was $97,800,
compared with the national average of $88,440. Total payroll for the engineering services cluster in the ninecounty region reached nearly $2.6 billion in 2013.
Metro Denver and Northern Colorado Engineering Services Occupation & Salary Profile, 2014
10 Largest Engineering Services
Occupations
in Metro Denver and Northern
Colorado
1. Civil engineers
Total
Working Number of
Across All Available Number of
Industries Applicants Graduates
(2014)
(2014)
(2013)
6,071
163
408
Median
Salary
$78,374
10th
Percentile
Salary
$52,458
25th
Percentile
Salary
$63,835
75th
90th
Percentile Percentile
Salary
Salary
$96,429 $112,299
2. Mechanical engineers
4,977
254
454
$82,202
$51,418
$64,605
$105,539
$132,538
3. Electrical engineers
3,146
187
307
$85,405
$53,061
$66,726
$106,496
$125,029
2,292
127
109
$81,203
$53,165
$63,107
$102,710
$117,686
49,442
687
71
$36,005
$23,566
$29,037
$43,992
$51,938
3,225
208
3,296 $141,232
$101,858
$120,786
$171,371
$278,554
33,116
777
77
$70,117
$36,171
$50,170
$92,872
$120,411
3,662
88
274
$64,542
$43,659
$51,917
$77,688
$94,453
4,282
95
356
$93,080
$59,717
$72,842
$119,392
$144,518
1,754
30
139
$54,891
$40,685
$46,301
$67,496
$83,949
4. Environmental engineers
5. Secretaries & administrative
assistants, except legal, medical,
& executive
6. Architectural & engineering
managers
7. Business operations specialists,
all other
8. Architects, except landscape &
naval
9. Electronics engineers, except
computer
10. Architectural & civil drafters
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s workforce development system’s statewide
database, Connecting Colorado, as being able and available to work in a particular occupation. Results should be interpreted with caution since registration in Connecting Colorado
is self-reported. In addition, the skills rubric may assign up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source:
Provided by Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.4 Class of Worker.
Education & Training
Colorado’s higher education system provides an excellent support system for businesses in the region. There are
28 public higher education institutions in Colorado, of which seven four‐year and six two‐year public institutions
offering comprehensive curricula are located in the nine‐county region. In addition, there are more than 100
private and religious accredited institutions and nearly 340 private occupational and technical schools offering
courses in dozens of program areas throughout the state. Although not exhaustive, a list of the major, accredited
educational institutions with the greatest number of graduates for each of the 10 largest engineering services
occupations in the nine-county region are included below. A directory of all higher education institutions with
corresponding websites may be accessed via http://highered.colorado.gov.

Colorado State University
www.colostate.edu

Metropolitan State University of Denver
www.msudenver.edu

University of Denver
www.du.edu

Colorado State University Global Campus
www.colostate.edu

Regis University
www.regis.edu

University of Northern
Colorado
www.unco.edu

Colorado School of Mines
www.mines.edu

University of Colorado Boulder
www.colorado.edu

Jones International University
www.jiu.edu

University of Colorado Denver
www.ucdenver.edu
April 2015 | Page 5
Industry Cluster Profile: Engineering Services
Key Reasons for Engineering Services Companies to Locate in the Denver South Region
and the Surrounding Nine-County Region
1. Access to a large, technical and scientific workforce
 Of Colorado’s adult population, nearly 38 percent has completed a bachelor’s or higher-level degree,
making Colorado the second-most highly educated state in the nation behind Massachusetts. (U.S. Census
Bureau, 2013 American Community Survey)
 Colorado ranked ninth in the number of science and engineering graduate students per 1,000 individuals
ages 25 to 34 years old in 2011. (National Science Foundation, 2014)
 Colorado ranked fourth in the number of scientists and engineers as a share of all occupations in 2012.
(National Science Foundation, 2014)
 Denver South’s surrounding counties (Arapahoe, Denver, and Douglas) issued 339 patents per 1 million
people in 2013, slightly below the 423 patents issued per 1 million people in the U.S. (U.S. Patent and
Trademark Office, 2014; U.S. Bureau of Economic Analysis, 2014)
 Two of the 10 best places in Colorado for job seekers were in Denver South—Centennial and Parker. The
study examined the cost of living, the unemployment rate, and the growth in the number of working-age
people in each city. (NerdWallet, 2013)
 Metro Denver ranked as the ninth‐best metro area for science, technology, engineering, and mathematics
(STEM) graduates in 2014. STEM jobs in Metro Denver represented 8.2 percent of all occupations and
the area’s annual mean wage for STEM jobs was $84,380. (NerdWallet, 2014)
 The Summer Engineering Experience for Kids, SEEK Denver, is a collaborative effort between Denver
Mayor Michael B. Hancock and his Office of Children’s Affairs, CH2M, Denver Public Schools, the
National Society of Black Engineers, and local businesses. The three-week program provides elementary
students in grades 3-5 the ability to solve problems and create products while discovering the underlying
math and science principles involved in these processes. (SEEK, 2014)
 CH2M supports a variety of STEM programs, including introducing elementary students to basic science
and math concepts, sponsoring secondary student science and engineering competitions, and providing
financial support and hands-on engineering experiences to keep university students engaged. The
company’s DiscoverE program places professional engineers in classrooms, enabling them to share their
passion for making a difference through challenging and rewarding careers. (CH2M, 2014)
 The University of Colorado and The Wildlife Experience collaborated to offer new classes and
certificates in engineering, business, education, and healthcare in the Denver South region. Engineering
certificates such as computer forensics, integrated construction, management, and leadership, and
software engineering are offered. (The University of Colorado, 2014)
2. A central location and easy global access
 Denver South boasts a close proximity to Denver International Airport (DIA) and Centennial Airport, the
premier business and general aviation airport in the Rocky Mountain Region.
o DIA was the fifth-busiest airport in the nation and 15th-busiest worldwide in terms of passenger
traffic in 2013. (U.S. Bureau of Transportation Statistics, 2014; Airports Council International
2014; and Denver International Airport, 2014)
o Located near the Denver Tech Center and 23 other business parks, Centennial Airport is the
major local reliever airport for DIA and generates more than $1.3 billion for the region annually,
the highest among the state’s general aviation airports. (Centennial Airport, 2014; Colorado
Department of Transportation, Division of Aeronautics, 2014)
 Metro Denver's unique geographic location in the Mountain time zone makes it the largest region in the
U.S. to offer one-bounce satellite uplinks. This capability provides companies with real-time connections
to six of seven continents in one business day. (Metro Denver Economic Development Corporation)
 Located on the 105th meridian, the nine-county region’s central location at the exact midpoint between
Tokyo and Frankfurt positions the region favorably to serve growing world markets. The region is an
April 2015 | Page 6
Industry Cluster Profile: Engineering Services

excellent location for doing business with the entire nation and is within four hours flying time of every
North American city with a population of 1 million or more. (Metro Denver Economic Development
Corporation)
The Denver-Aurora-Broomfield MSA is a key distribution hub, making fast Internet connections a
necessity in the region. More than 92 percent of the population in the Denver-Aurora-Broomfield MSA
reported access to download speeds greater than 100-megabyes per second, compared with 59.8 percent
nationwide in 2014. (The Federal Communications Commission, 2014; National Telecommunications
and Information Administration, 2014)
3. Proximity to colleges/universities
 Three Metro Denver universities ranked among the nation’s top 100 graduate engineering programs in
2015. The College of Engineering and Applied Science at the University of Colorado Boulder (CUBoulder) ranked 34th, Colorado School of Mines (CSM) ranked 56th, and the College of Engineering at
Colorado State University (CSU) ranked 71st. (U.S. News & World Report, 2015)
 Five Metro Denver universities ranked among the nation’s “Best Undergraduate Engineering Programs”
that offer doctoral degrees. The College of Engineering and Applied Science at CU-Boulder ranked 32nd,
CSM ranked 49th, the College of Engineering at CSU ranked 65th, the College of Engineering and
Applied Science at the University of Colorado Denver ranked 139th, and the Daniel Felix Ritchie School
of Engineering and Computer Science at the University of Denver ranked 152nd. (U.S. News & World
Report, 2014)
 The University of Colorado system ranked 10th among the nation’s public institutions for science and
engineering research and development expenditures totaling $800 million in fiscal year 2012. The
university also ranked fourth for federally funded research expenditures. (National Science Foundation,
2014)
 CSM in Golden ranked as the nation’s top engineering school in 2014. (College Factual, 2014)
 CSU partnered with Douglas County-based CH2M to offer two graduate-level courses that are part of a
systems engineering program offered by the schools’ College of Engineering. Through the CSU Denver
South initiative, the four-course program began in early 2014 and includes two classes taught on CH2M’s
Englewood campus and two classes available online, which cover the core curriculum needed for
completion of a master’s or Ph.D. in systems engineering from CSU. CSU Denver South will provide
convenient educational opportunities to students where they live and work, and will address the
workforce needs of local industry. (Colorado State University, 2014)
 The Daniel Felix Ritchie School of Engineering & Computer Science at the University of Denver partners
with companies to deliver comprehensive continuing education and training programs. The Ritchie
School provides a number of ways to ensure that employees are equipped with the skills to meet the
challenges of the evolving workplace including traditional degree programs, certificate programs tailored
to companies’ specific training needs, single or multi-day short courses at the University of Denver
campus or on location, and one or two week intensive state-of-the-art technical specialty programs.
(University of Denver, 2014)
4. Low to moderate costs of doing business
 Colorado's simplified corporate income tax structure based on single-factor apportionment allows
companies to pay taxes based solely on their sales in the state. Along with few regulatory burdens,
Colorado's corporate income tax rate of 4.63 percent is one of the lowest and most competitive tax
structures in the nation. (State of Colorado; The Tax Foundation)
 Forbes ranked Metro Denver fourth among the “Best Places for Business and Careers” in 2014. Four
other Colorado metropolitan areas were included on the list. The Fort Collins metro area ranked fifth
overall, Greeley ranked 20th, Boulder ranked 23rd, and Colorado Springs ranked 29th. (Forbes, 2014)
April 2015 | Page 7
Industry Cluster Profile: Engineering Services


Colorado ranked as the No. 8 small-business-friendly state in the nation. Fort Collins (24th) and Denver
(28th) ranked among 84 cities in the country. (Thumbtack.com, 2014; Ewing Marion Kauffman
Foundation, 2014)
Denver South’s office rental rates averaged $23.40 per square foot in the first quarter of 2015, making the
region’s office market highly competitive with other major markets in the U.S. Denver South has more
than 41 million square feet of office space and roughly 5,000 acres of ready-to-be-developed land.
(CoStar Realty Information, Q1 2015)
5. An overall better quality of life
 Centennial ranked among the top 15 in MONEY Magazine’s 2014 list of the “Best Places to Live.” Castle
Rock (fourth) and Boulder (23rd) were also named to the list’s top 50. (MONEY Magazine, 2014)
 NerdWallet named Highlands Ranch, Lone Tree, and Parker among the top 10 “Best Towns in Colorado
for Young Families.” The cities were touted for their quality education, recreational opportuntiies,
creative and innovative energy, and affordable housing. (NerdWallet, 2014)
 The Denver South region boasts a variety and quality of housing options from expansive apartment
complexes to single-family homes surrounded by open spaces. One of the largest and most
comprehensive master planned communities in the nation—RidgeGate—is located conveniently along
Interstate 25 and Lincoln Avenue in Lone Tree and offers 3,500 acres of mixed-use density including
retail, dining, healthcare, recreation, and mass transit. (Denver South Economic Development Partnership,
2014)
 Denver South is home to a wide array of transportation options. The Southeast Corridor Light Rail Line
runs along the west side of I-25 from Broadway in Denver to Lincoln Avenue in Douglas County, and in
the median of I-225 from I-25 to Parker Road in Aurora, connecting the two largest employment centers
in the Metro Denver region. The Denver South region also offers bus services to the southeast corridor
from all corners of the Metro Denver region, including express buses and regional buses operating during
the peak commute hours. (Denver South Economic Development Partnership, 2014)
 The Regional Transportation District (RTD) offers two corporate pass programs for companies in the
Denver South region. The EcoPass is an annual transit pass purchased by a company for all of its
employees, providing unlimited usage of RTD services. FlexPass is an annual pass program that can be
customized to meet the needs of the employer and employees. The program's flexible nature enables
employees to choose their service level, vary passes from month-to-month, and enter or leave the program
at any time. Both passes are tax deductible to the employer and provided tax-free to employees. (Regional
Transportation District, 2014)
 Metro Denver ranked as the fourth-fittest metro area in the nation in 2014. Denver’s high percentage of
residents participating in physical activity and low obesity and cardiovascular disease rates contributed to
its high rank. (American College of Sports Medicine, 2014)
For additional information, contact us:
Denver South Economic Development Partnership
304 Inverness Way South, Suite 315
Englewood, CO 80112
303-792-9447
www.denversouthedp.org
Prepared by Development Research Partners, Inc., www.DevelopmentResearch.net
April 2015 | Page 8