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
Codes and Standards | May 1, 2023
Hurricane Ian aftermath expected to prompt building code reform in Florida
Hurricane Ian struck the Southwest Florida coastline last fall with winds exceeding 150 mph, flooding cities, and devastating structures across the state. A construction risk management expert believes the projected economic damage, as high as $75 billion, will prompt the state to beef up building codes and reform land use rules.
| Apr 28, 2023
$1 billion mixed-use multifamily development will add 1,200 units to South Florida market
A giant $1 billion residential project, The District in Davie, will bring 1.6 million sf of new Class A residential apartments to the hot South Florida market. Located near Ft. Lauderdale and greater Miami, the development will include 36,000 sf of restaurants and retail space. The development will also provide 1.1 million sf of access controlled onsite parking with 2,650 parking spaces.
Design Innovation Report | Apr 27, 2023
BD+C's 2023 Design Innovation Report
Building Design+Construction’s Design Innovation Report presents projects, spaces, and initiatives—and the AEC professionals behind them—that push the boundaries of building design. This year, we feature four novel projects and one building science innovation.
Mixed-Use | Apr 27, 2023
New Jersey turns a brownfield site into Steel Tech, a 3.3-acre mixed-use development
In Jersey City, N.J., a 3.3-acre redevelopment project called Steel Tech will turn a brownfield site into a mixed-use residential high-rise building, a community center, two public plazas, and a business incubator facility. Steel Tech received site plan approval in recent weeks.
Multifamily Housing | Apr 27, 2023
Watch: Specifying materials in multifamily housing projects
A trio of multifamily housing experts discusses trends in materials in their latest developments. Topics include the need to balance aesthetics and durability, the advantages of textured materials, and the benefits of biophilia.
AEC Tech Innovation | Apr 27, 2023
Does your firm use ChatGPT?
Is your firm having success utilizing ChatGPT (or other AI chat tools) on your building projects or as part of your business operations? If so, we want to hear from you.
Concrete Technology | Apr 24, 2023
A housing complex outside Paris is touted as the world’s first fully recycled concrete building
Outside Paris, Holcim, a Swiss-based provider of innovative and sustainable building solutions, and Seqens, a social housing provider in France, are partnering to build Recygénie—a 220-unit housing complex, including 70 social housing units. Holcim is calling the project the world’s first fully recycled concrete building.
Office Buildings | Apr 24, 2023
Smart savings: Commissioning for the hybrid workplace
Joe Crowe, Senior Mechanical Engineer, Gresham Smith, shares smart savings tips for facility managers and building owners of hybrid workplaces.
Multifamily Housing | Apr 21, 2023
Arlington County, Va., eliminates single-family-only zoning
Arlington County, a Washington, D.C., community that took shape in the 1950s, when single-family homes were the rule in suburbia, recently became one of the first locations on the East Coast to eliminate single-family-only zoning.
Green | Apr 21, 2023
Top 10 green building projects for 2023
The Harvard University Science and Engineering Complex in Boston and the Westwood Hills Nature Center in St. Louis are among the AIA COTE Top Ten Awards honorees for 2023.
