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
Multifamily Housing | Jun 28, 2023
Sutton Tower, an 80-story multifamily development, completes construction in Manhattan’s Midtown East
In Manhattan’s Midtown East, the construction of Sutton Tower, an 80-story residential building, has been completed. Located in the Sutton Place neighborhood, the tower offers 120 for-sale residences, with the first move-ins scheduled for this summer. The project was designed by Thomas Juul-Hansen and developed by Gamma Real Estate and JVP Management. Lendlease, the general contractor, started construction in 2018.
Apartments | Jun 27, 2023
Average U.S. apartment rent reached all-time high in May, at $1,716
Multifamily rents continued to increase through the first half of 2023, despite challenges for the sector and continuing economic uncertainty. But job growth has remained robust and new households keep forming, creating apartment demand and ongoing rent growth. The average U.S. apartment rent reached an all-time high of $1,716 in May.
Apartments | Jun 27, 2023
Dallas high-rise multifamily tower is first in state to receive WELL Gold certification
HALL Arts Residences, 28-story luxury residential high-rise in the Dallas Arts District, recently became the first high-rise multifamily tower in Texas to receive WELL Gold Certification, a designation issued by the International WELL Building Institute. The HKS-designed condominium tower was designed with numerous wellness details.
University Buildings | Jun 26, 2023
Addition by subtraction: The value of open space on higher education campuses
Creating a meaningful academic and student life experience on university and college campuses does not always mean adding a new building. A new or resurrected campus quad, recreational fields, gardens, and other greenspaces can tie a campus together, writes Sean Rosebrugh, AIA, LEED AP, HMC Architects' Higher Education Practice Leader.
Standards | Jun 26, 2023
New Wi-Fi standard boosts indoor navigation, tracking accuracy in buildings
The recently released Wi-Fi standard, IEEE 802.11az enables more refined and accurate indoor location capabilities. As technology manufacturers incorporate the new standard in various devices, it will enable buildings, including malls, arenas, and stadiums, to provide new wayfinding and tracking features.
Green | Jun 26, 2023
Federal government will spend $30 million on novel green building technologies
The U.S. General Services Administration (GSA), and the U.S. Department of Energy (DOE) will invest $30 million from the Inflation Reduction Act to increase the sustainability of federal buildings by testing novel technologies. The vehicle for that effort, the Green Proving Ground (GPG) program, will invest in American-made technologies to help increase federal electric vehicle supply equipment, protect air quality, reduce climate pollution, and enhance building performance.
Office Buildings | Jun 26, 2023
Electric vehicle chargers are top priority for corporate office renters
Businesses that rent office space view electric vehicle (EV) charging stations as a top priority. More than 40% of companies in the Americas and EMEA (Europe, the Middle East and Africa) are looking to include EV charging stations in future leases, according to JLL’s 2023 Responsible Real Estate study.
Laboratories | Jun 23, 2023
A New Jersey development represents the state’s largest-ever investment in life sciences and medical education
In New Brunswick, N.J., a life sciences development that’s now underway aims to bring together academics and researchers to work, learn, and experiment under one roof. HELIX Health + Life Science Exchange is an innovation district under development on a four-acre downtown site. At $731 million, HELIX, which will be built in three phases, represents New Jersey’s largest-ever investment in life sciences and medical education, according to a press statement.
Sports and Recreational Facilities | Jun 22, 2023
NFL's Jacksonville Jaguars release conceptual designs for ‘stadium of the future’
Designed by HOK, the Stadium of the Future intends to meet the evolving needs of all stadium stakeholders—which include the Jaguars, the annual Florida-Georgia college football game, the TaxSlayer.com Gator Bowl, international sporting events, music festivals and tours, and the thousands of fans and guests who attend each event.
Industrial Facilities | Jun 20, 2023
A new study presses for measuring embodied carbon in industrial buildings
The embodied carbon (EC) intensity in core and shell industrial buildings in the U.S. averages 23.0 kilograms per sf, according to a recent analysis of 26 whole building life-cycle assessments. That means a 300,000-sf warehouse would emit 6,890 megatons of carbon over its lifespan, or the equivalent of the carbon emitted by 1,530 gas-powered cars driven for one year. Those sobering estimates come from a new benchmark study, “Embodied Carbon U.S. Industrial Real Estate.”
