The enthusiasm that surged through the U.S. engineering industry following the election of Donald Trump has moderated, according the latest survey of engineering firm leaders by the American Council of Engineering Companies (ACEC).
The first quarter 2017 (Q1/17) of ACEC’s Engineering Business Index (EBI) dipped slightly (0.5 points) to 66.0. The decline is minimal and the score remains decidedly positive, but is in contrast to the 4th quarter 2016 EBI in which, fueled by Trump’s promises of lower taxes, infrastructure investment, and regulatory reform, the score jumped 5.1 points—the largest quarterly increase in the survey’s three-year history.
Now however, with the Administration slow to implement any of these polices, engineering firm leader confidence seems to have plateaued.
The EBI is a leading indicator of America’s economic health based on the business performance and projections of U.S. engineering firms that develop the nation’s transportation, water, energy and industrial infrastructure. The EBI is a diffusion index. The index mean is 50, with scores above 50 indicating business expansion, and scores below 50 indicating contraction. The Q1/17 survey was conducted March 23 to April 24 of 378 U.S. engineering firm leaders.
When comparing today’s market conditions to six months ago, the EBI score climbed 3.2 point to 66.8; while current backlog compared to six months ago was up a strong 5.1 points to 67.1. Additionally, short-term (six-month) expectations for profitability increased 3.5 points to 72.5 points.
Other EBI results however, clearly reflect engineering leader marketplace ambiguity. Market expectations for one year from today fell 2.6 points to 69.5; profitability expectations for the same period were flat (72.9); but looking out three years, expectations fell 2.4 points, and anticipated backlog fell 1.1 points to 70.4.
Concerns about long-term marketplace health resulted in significant declines in nine of the 12 primary public and private sector engineering markets.
For more information about the Q1/17 EBI, go to www.acec.org.
Related Stories
Healthcare Facilities | May 6, 2024
Hospital construction costs for 2024
Data from Gordian breaks down the average cost per square foot for a three-story hospital across 10 U.S. cities.
Engineers | May 6, 2024
WSP acquires AKF, expanding its Property & Buildings Practice across the U.S. Northeast
WSP Global Inc. is pleased to announce the acquisition of AKF Group LLC. Headquartered in New York City, AKF is a specialized mechanical, electrical, and plumbing firm that designs complex healthcare, science and technology, and mission-critical facilities. Its 365 professionals operate throughout the eastern U.S., with an additional complementary presence in Mexico.
MFPRO+ Special Reports | May 6, 2024
Top 10 trends in affordable housing
Among affordable housing developers today, there’s one commonality tying projects together: uncertainty. AEC firms share their latest insights and philosophies on the future of affordable housing in BD+C's 2023 Multifamily Annual Report.
Retail Centers | May 3, 2024
Outside Las Vegas, two unused office buildings will be turned into an open-air retail development
In Henderson, Nev., a city roughly 15 miles southeast of Las Vegas, 100,000 sf of unused office space will be turned into an open-air retail development called The Cliff. The $30 million adaptive reuse development will convert the site’s two office buildings into a destination for retail stores, chef-driven restaurants, and community entertainment.
Codes and Standards | May 3, 2024
New York City considering bill to prevent building collapses
The New York City Council is considering a proposed law with the goal of preventing building collapses. The Billingsley Structural Integrity Act is a response to the collapse of 1915 Billingsley Terrace in the Bronx last December.
K-12 Schools | Apr 30, 2024
Fully electric Oregon elementary school aims for resilience with microgrid design
The River Grove Elementary School in Oregon was designed for net-zero carbon and resiliency to seismic events, storms, and wildfire. The roughly 82,000-sf school in a Portland suburb will feature a microgrid—a small-scale power grid that operates independently from the area’s electric grid.
AEC Tech | Apr 30, 2024
Lack of organizational readiness is biggest hurdle to artificial intelligence adoption
Managers of companies in the industrial sector, including construction, have bought the hype of artificial intelligence (AI) as a transformative technology, but their organizations are not ready to realize its promise, according to research from IFS, a global cloud enterprise software company. An IFS survey of 1,700 senior decision-makers found that 84% of executives anticipate massive organizational benefits from AI.
Codes and Standards | Apr 30, 2024
Updated document details methods of testing fenestration for exterior walls
The Fenestration and Glazing Industry Alliance (FGIA) updated a document serving a recommended practice for determining test methodology for laboratory and field testing of exterior wall systems. The document pertains to products covered by an AAMA standard such as curtain walls, storefronts, window walls, and sloped glazing. AAMA 501-24, Methods of Test for Exterior Walls was last updated in 2015.
MFPRO+ News | Apr 29, 2024
World’s largest 3D printer could create entire neighborhoods
The University of Maine recently unveiled the world’s largest 3D printer said to be able to create entire neighborhoods. The machine is four times larger than a preceding model that was first tested in 2019. The older model was used to create a 600 sf single-family home made of recyclable wood fiber and bio-resin materials.
AEC Innovators | Apr 26, 2024
National Institute of Building Sciences announces Building Innovation 2024 schedule
The National Institute of Building Sciences is hosting its annual Building Innovation conference, May 22-24 at the Capital Hilton in Washington, D.C. BI2024 brings together everyone who impacts the built environment: government agencies, contractors, the private sector, architects, scientists, and more.