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
| Dec 9, 2012
Greenzone pop quiz
Greenbuild attendees share their thoughts with BD+C on the SAGE modular classroom.
| Dec 9, 2012
Modular classroom building makes the grade
SAGE modular classroom opens eyes, minds at Greenbuild 2012.
| Dec 9, 2012
14 great solutions
Welcome to the third installment of Building Design+Construction’s “Great Solutions,” highlighting 14 innovative technologies and products that you can put to work in your next project.
| Dec 9, 2012
AEC professionals cautiously optimistic about commercial construction in ’13
Most economists say the U.S. is slowly emerging from the Great Recession, a view that was confirmed to some extent by an exclusive survey of 498 BD+C subscribers whose views we sought on the commercial construction industry’s outlook on business prospects for 2013.
| Dec 7, 2012
Structural glazing sealant protects solar-rooftop stadium in Taiwan
Designers of the Kaohsiung World Games Main Stadium in Gaoxiong, Taiwan, powered by almost 9,000 rooftop solar panels, required an effective panel fixing design offering optimum energy transfer rate, plus thermal and weathertight performance. Dow Corning specialists recommended a four-sided structural sealant solution featuring Dow Corning 983 Structural Glazing Sealant.
| Dec 5, 2012
Gilbane publishes Winter 2012 construction economic report
Report outlines impact of recent events; predicts continued movement, while slow, toward recovery.
| Dec 4, 2012
MKK’s Denver Human Services Eastside Building wins ACEC Excellence Award
MKK provided mechanical, plumbing and fire protection consulting services on this LEED-NC Gold project.
| Dec 4, 2012
Thornton Tomasetti opens new office in São Paulo, Brazil
The move to São Paulo is strategic and timely, as the country continues preparations for the 2014 World Cup and 2016 Olympic Games in Rio de Janeiro.
| Dec 4, 2012
Greenhorne & O’Mara signs letter of intent to join Stantec
Acquisitions of C3TS and Architecture 2000 also completed.
