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
| Jan 3, 2013
8 trends shaping today’s senior housing
The ranks of those age 65 and older are swelling by the thousands every day. Is there an opportunity for your firm in the seniors housing market?
| Jan 2, 2013
Trends Report: New facilities enhance the quality of campus life
Colleges and universities are building state-of-the-art student unions, dining halls, and other non-academic buildings to enrich the campus experience, boost enrollment, and stay competitive.
| Jan 2, 2013
M&A activity at U.S. AEC firms up slightly
Total mergers and acquisitions in the AEC industry hit 171 in 2012, up slight from the 169 deals in 2011.
| Jan 2, 2013
BIM market value to hit $6.5 billion by 2020
Sales of BIM software and services are expected to grow at a compound annual rate of 17.3%, to a market value of $6.5 billion in 2020.
| Jan 2, 2013
Construction jobs made gains in 2012, even with a slow Q4, says Gilbane report
The construction sector in the nine states with 50% of construction employment was up 169,000 jobs from February to September 2012, following a lost of 137,000 jobs from September 2011 to January 2012.
| Dec 21, 2012
ABI gains for fourth straight month
Positive business conditions for all building sectors.
| Dec 15, 2012
SAIC makes ready to lay off 700
SAIC, McLean, Va. (2011 construction revenues: $185,390,000), said it plans to cut its workforce by 700 employees in order to remain competitive in the federal market.