Procurement Market Intelligence Report
Engineering Testing Services
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Engineering Testing Services Global Overview
Definition
Summary
Engineering testing services include the analysis of physical, chemical, and mechanical properties; rotating machinery and vibration; structural modeling, qualification testing, and noise mitigation; and geotechnical, thermal, calibration, electrical, and electronic testing, among others. Market services can be performed on-site or in a laboratory. Typical buyers of these services are manufacturers in the technology sector. Suppliers are generally engineering firms.
This Report Includes:
- Rotating Machinery
- Structural Modeling
- Qualification Testing
- Geotechnical, Thermal, Calibration, Electrical and Electronic Testing
Not in this Report:
- Laboratory Testing
- Product Development
- Management Consulting
Global Engineering Testing Services Procurement Trends
Discover the top international trends affecting procurement in the global Engineering Testing Services market.
Warning Trends
United States announces additional tariffs on China
- In February 2025, the United States announced 10.0% tariffs on imports from China. The tariffs took effect on February 4, 2025.
- The tariff plan applies to all merchandise imported for consumption and applies in addition to other duties and fees that are in place, with limited exceptions.
- In response, China announced a 15.0% tariff on products such as coal and natural gas, as well as a 10.0% tariff on crude oil, agricultural machinery, pickup trucks, and large cars. The tariff executive orders indicate retaliatory tariffs could lead to further escalation in rates.
- Providers in this market rely on inputs often sourced from China. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
Neutral
Inflation climbs above 3.0% for the first time in seven months
- In January, the Consumer Price Index (CPI) 12-month inflation rate, the most commonly used measure of inflation, rose by 0.1% to 3.0%, the highest it has been since June 2024.
- This uptick in inflation follows cuts to interest rates which may have added to consumer demand, fueling higher consumer prices.
- Additionally, the threat of impending tariff hikes has driven preemptive stockpiling by importers, adding to demand and price growth across a range of industries in the United States.
- While inflation is still low relative to previous years, sustained recent increases in inflation and the potential effects of tariffs, such as the recently implemented 10.0% on all Chinese goods, mean prices are still rising at a faster-than-normal pace.
Global Engineering Testing Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1Europe | 41,965 |
| #2China | 32,645 |
| #3United States | 23,200 |
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Geography Drilldown - US & Europe
Average Cost of Engineering Testing Services
United States
2025 Market Pricing$60.00 to $XXX.XX
per hourEurope
Average Price
Prices in the Engineering Testing Services market range from $60.00 to $XXX.XX, depending on Scope of Testing, Project Duration and Reporting. For example, lower prices are associated with Simple material stress test ($60.00 to $180 per hour), whereas higher prices are associated with Complex mechanical system testing ($160 to $380 per hour).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Engineering Testing Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Engineering Testing Services market, prices in the US have grown 1.6% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Europe is --0.2%.
United States (2022-2025)
1.6%
Compound Annual Growth RateEurope (2022-2025)
-0.2%
Compound Annual Growth RateWondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Engineering Testing Services
Total cost of ownership is Low in the Engineering Testing Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Cancellations may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Billed During
Upgrades
Fuel
Unforeseen
Cancellations
Buyer Power in Procurement Negotiations
In 2025, buyer power amounts to -0.8 in the United States. Buyer power is most positively impacted by Recent Price Volatility. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Europe
Buyer power forecasts: your glimpse into the future
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- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Computer & Electronic Product Wholesalers
- Laboratory Supply Wholesalers
- Packaged Software Publishers
2nd
Tier Suppliers
- Semiconductor & Circuit Manufacturers
- Navigational Instrument Manufacturers
- Engineering Software Publishers
Biggest Engineering Testing Services Suppliers in the US by Revenue
The largest Engineering Testing Services vendors by revenue in the US are Underwriters Laboratories Inc., Terracon Consultants Inc. and National Technical Systems, Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| SGS AG | Global | Geneva , CH | >10,001 | 5-10 | ||||
| Bureau Veritas S A | Global | Paris, FR | >10,001 | 5-10 | ||||
| Intertek Group Plc | Global | London, UK | >10,001 | 5-10 | ||||
| National Technical Systems, Inc | International | Anaheim, CA | 1,001-10,000 | < 5 | ||||
| Exova Inc. | International | Victoria, London, UK | 1,001-10,000 | < 5 | ||||
| American Testing Services Ltd. | National | Miamisburg, OH | 25-50 | < 5 | ||||
| Underwriters Laboratories Inc. | Global | Northbrook, IL | >10,000 | < 5 | ||||
| Terracon Consultants Inc. | National | Olathe, KS | 1,001-10,000 | < 5 | ||||
| Ctl Engineering, Inc. | International | Columbus, OH | 101-250 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Engineering Testing Services market is 9.8% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2024 and 2025. To understand cost forecasts for 2026 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Buyers of engineering testing services face a low level of supply chain risk. Testing firms rely on complex computer software and specialized equipment to evaluate materials and measure and interpret data from buildings, structures, soil conditions, and the environment.
Average vendor risk is low in the market. Buyers are under minimal risk that supplier relations will deteriorate due to poor vendor financial health.
Market share concentration is low in the market. This benefits buyers by increasing market and pricing competition.
The United States is a net importer of chemical and physical analysis instruments, indicating a diversity of advanced and specialized options in this market offered by foreign suppliers. Along with the beneficial aspect of product variation, there's an inherent risk of grappling with regulatory changes and standards for such specialized equipment.
Supplier Information
Intertek Group Plc
Intertek Group Plc is a public company operating globally in the mining and professional, scientific and technical services sectors. The company's offerings include nondestructive testing services, air quality monitoring services, carbon management services, water quality testing services, pipeline inspection... Subscribe to learn more
Bureau Veritas S A
Bureau Veritas S A is a public company operating globally in the professional, scientific and technical services sector. The company's offerings include nondestructive testing services, industrial design services, industrial hygiene services, air quality monitoring services, water quality testing services.... Subscribe to learn more
SGS AG
SGS AG is a public company operating globally in the mining, professional, scientific and technical services and other services (except public administration) sectors. The company's offerings include seismic & geophysical services, slickline services, well cementing services, heavy equipment installation Subscribe to learn more
Ctl Engineering, Inc.
Ctl Engineering, Inc. is a private company operating internationally in the professional, scientific and technical services sector. The company's offerings include engineering testing services. Founded in 1927, the company is currently headquartered in Columbus, Ohio, United States of America with an estimated... Subscribe to learn more
Terracon Consultants Inc.
Terracon Consultants Inc. is a private company operating nationally in the professional, scientific and technical services sector. The company's offerings include industrial hygiene services, geotechnical engineering services and engineering testing services. Founded in 1965, the company is currently headquartered... Subscribe to learn more
Underwriters Laboratories Inc.
Underwriters Laboratories Inc. is a private company operating in the information and professional, scientific and technical services sectors. The company's offerings include environmental health & safety software, water quality testing services, engineering testing services, quality & safety inspection services,... Subscribe to learn more
American Testing Services Ltd.
American Testing Services Ltd. is a private company operating nationally in the professional, scientific and technical services sector. The company's offerings include engineering testing services. Founded in 2002, the company is currently headquartered in Miamisburg, Ohio, United States of America with an... Subscribe to learn more
Exova Inc.
Exova Inc. is a private company operating internationally in the professional, scientific and technical services sector. The company's offerings include engineering testing services. Founded in 2011, the company is currently headquartered in Victoria, London, United Kingdom with an estimated 5500 employees.... Subscribe to learn more
National Technical Systems, Inc
National Technical Systems, Inc. is a private company operating internationally in the professional, scientific and technical services sector. The company's offerings include engineering testing services and product testing services. Founded in 1961, the company is currently headquartered in Anaheim, California,... Subscribe to learn more
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Procurement Management KPIs for the Engineering Testing Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Employee Training Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Turnaround Time and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time | Length of time from query to solution Number of times that resolutions are not met | Vendors should be measured by their ability to quickly resolve issues. The resolution time will drastically affect a buyer's relationship with their customers. | |
| Employee Training Rate | Number of employees passing certifications or tests Employee training time | Vendors that are proactively training employees will be able to adapt to future issues. Vendors that can provide training certification can provide the buyer with more assurance that their services are being handled by qualified employees. | |
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Regulation
How do you stay informed about ongoing regulatory changes?
How do you manage regulatory change?
Value-Added Services
Do you offer discounts for bundled services, and if so, what are the terms?
What additional services can you provide? How will these change the price?
Experience Qualifications
Have you served businesses like mine? Can you provide a portfolio of similar projects you have worked on?
Do you possess any additional certifications from trade associations?
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Engineering Testing Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organizations and explain why they are seeking engineering testing services.
Buyers need to give a description of what their project is and the extent of the engineering testing services required.
Statement Of Need
Buyers should provide a detailed description of the project they will be conducting and how engineering testing services will be involved.
Buyers should also include a detailed description of the project's specific testing requirements.
Project Budget
Buyers should explicitly state the amount of the contract award.
Buyers should explain whether they expect to pay for services after each project or at some other point during the life of the contract.
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- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
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