AECOM SWOT & PESTLE Analysis
ID : 52938353| Jul 2021| 19 pages
COMPANY PROFILE -AECOM
Business Sector :Engineering, Professional Services
About AECOM :
AECOM is a multinational engineering company based in the United States. The company is headquartered in Los Angeles, California. Although the company was founded in 1990, several of its predecessor companies had a long and illustrious history stretching back over 120 years. The merger of five companies resulted in the creation of AECOM. The company collaborates with clients to tackle their most difficult problems and develop new solutions that have a long-term effect. Connecting people and economies with roads, bridges, tunnels and transit systems, providing safe drinking water and electricity, creating world-famous skyscrapers, making plans for new settlements, repairing and restoring damaged ecosystems, on projects ranging from transportation to housing to water to governments, energy, and the environment are some of the services offered by the company. AECOM combine global experience with a local perspective on projects spanning transportation, buildings, water, governments, electricity, and the environment to create legacies for future generations. On April 26, 2021, the organisation announced the launch of Sustainable Legacies, its plan for achieving ambitious environmental, social, and governance (ESG) goals. This plan is built on four main pillars that will incorporate sustainable development and sustainability into the company's work, improve community social outcomes, achieve net-zero carbon emissions, and improve governance.
AECOM's Unique Selling Point or USP lies in it being the world's premier infrastructure consulting firm, as well as a Leader in engineering design among the top 500 design firms worldwide. The company's mission statement reads, " We build a better world by opening doors, creating opportunity and protecting tomorrow. Our technical experts and visionaries harness the power of technology to deliver transformative outcomes. We have a responsibility to protect, enhance and restore the world's natural and social systems".
AECOM Revenue :
$ 13,240 million - FY ending 30th September 2020 (y-o-y decline 2.9%)
$ 13,642 million - FY ending 30th September 2019
Competitive Analysis of AECOM
The SWOT analysis for AECOM is presented below in a matrix followed by the detailed analysis report:
1. Strong presence in multiple sectors.
2.	A market leader and one of the most admired companies globally.
3.	Heavily involved in the construction of several world-famous projects.
1.	Inability to retain jobs during the Covid-19 pandemic.
1.	Winning contracts with the US Air Force and US Postal Services will be a steady source of revenue.
2. Implementation of "Think and Act Globally" strategy is expected to establish dominance in professional services.
3.	Focus on clean energy sources will benefit company.
4.	The De-FluoroTM technology will see extensive demand for being the first of its kind.
1.	United Kingdom forms a significant part of European business and Brexit might have adverse impact.
2.	Covid-19 expected to continue affecting demand and operations.
3.	Divesting plans may result in significant expenses and losses.
4.	Cyclical demand and intense competition from both local and global players.
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Detailed SWOT Analysis of AECOM
1. Strong presence in multiple sectors: AECOM's business is usually reported via three segments – Americas, International and AECOM Capital. Americas and International segment consist of their planning, consulting, architectural and engineering design services to the world while AECOM capital represents investments in the real estate market. They have a very strong presence in several end markets such as transportation, facilities, environmental, energy & power and construction management. They provide a vast variety of essential services such as transit projects, aircraft facilities construction, emergency response services for the US government, environmental management, water resource management, hydropower and solar energy services and construction of large-scale building facilities such as sports arenas, business towers etc. Engineering News Record has ranked them as number 1 company in the transportation, general building, environment and program management categories and 2nd in water supply category.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
1.	Winning contracts with the US Air Force and US Postal Services will be a steady source of revenue: In March 2021, it was announced that AECOM was one of the 17 firms who were winners of a five-year, $2 billion contract to provide planning, design and construction management services for the US Air Force installations around the globe. AECOM said it was working on multiple projects under this contract globally, including the construction of new cyber innovation center at the Air Force Academy in Colorado Springs, Colo. The contract is for the next five years. In April 2021, AECOM was one of the 3 winners of a $600 million program management services contract covering all facilities in the US Postal Service portfolio. AECOM has previously worked with USPS providing program and project management, architectural and engineering design, construction management and environmental services. The current contract is for 3 years with an option to extend it to another 4 years. Both the major contracts will ensure a steady stream of work and income for the organization.
The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.
The PESTLE analysis for AECOM is presented below in a table followed by the detailed analysis report.
1.	Biden Administration is expected to emphasize on clean energy sources.
2.	Covid relief legislation will enhance opportunities available in 2021.
1.	Joe Biden's infrastructure plan in the US is expected to have a positive effect on the stocks of engineering companies.
2.	Infrastructure prices expected to exceed inflation rates.
1.	Increasing trend of work from home will require advanced interaction tools. 1.	Autonomous vehicle trend is gaining traction.
2.	Accelerated usage of 3D in the design process.
1.	The US Department of Justice's lawsuit against AECOM will cause complications. 1.	Most corporate clients have set net zero targets.
2.	Concerns regarding PFAs polluted water will require action.
Detailed Pestle Analysis of AECOM
1.	Most corporate clients have set net zero targets: A new report by the Energy and Climate Intelligence Unit (ECIU) and Oxford Net Zero stated that 21% of the world's largest 2,000 public companies, that account for sales of almost $14trn, have set net-zero commitments. It also reports that 124 countries are now committed to or considering net zero targets. Companies with net zero targets hire firms to design infrastructure or product changes in line with their environmental, social and governance (ESG) goals. AECOM has already established itself as a leader in this field and is expected to transition into an ESG services company. Their services include carbon and energy management, climate strategy and finance, circular economy applications and so on. Their expertise and market dominance makes them a ready choice for large corporates. AECOM has already partnered with corporates to deliver on their green goals such developing Shell's first hydrogen fueled station in the Netherlands, designed Golden 1 Center – the world's most sustainable sports arena and several other projects.
The remaining section under "Environment" is available only in the 'Complete Report' on purchase.
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References used in AECOM SWOT & PESTLE Analysis Report
1. 2020 Annual Report - https://investors.aecom.com/static-files/42925030-9c9f-4f6d-aebf-5169648ef124
2. Projects - https://aecom.com/projects/
3. Aecom reshapes business and cuts 500 jobs - http://www.infrastructure-intelligence.com/article/aug-2020/aecom-re-shapes-business-and-cuts-500-jobs
4. AECOM launches its Think and Act Globally strategy and increases Board repurchase authorization to $1 billion - https://aecom.com/press-releases/aecom-launches-its-think-and-act-globally-strategy-and-increases-board-repurchase-authorization-to-1-billion/
5. Stocks stand to gain the most - https://seekingalpha.com/news/3679007-15-stocks-stand-to-gain-the-most-from-biden-infrastructure-plan-barrons
AECOM SWOT & PESTLE Analysis - SWOT & PESTLE.COM
SWOT & PESTLE.com (2022). AECOM SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/aecom/ [Accessed 17 Jan, 2022].
AECOM SWOT and PESTLE analysis has been conducted by Medha Sinha and reviewed by senior analysts from Barakaat Consulting.
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