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
Giants 400 | Aug 29, 2022
Top 35 Student Housing Facility Engineering + EA Firms for 2022
Kimley-Horn, Wiss, Janney, Elstner Associates, KPFF Consulting Engineers, and Jacobs top the ranking of the nation's largest student housing facility engineering and engineering/architecture (EA) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
| Aug 29, 2022
Montana becomes first U.S. state to approve 3D printing in construction
Montana is the first U.S. state to give broad regulatory approval for 3D printing in building construction.
Giants 400 | Aug 29, 2022
Top 75 Multifamily Sector Engineering + EA Firms for 2022
Kimley-Horn, WSP, Langan, and Olsson head the ranking of the nation's largest multifamily housing sector engineering and engineering/architecture (EA) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. Note: This ranking includes all multifamily sector work, including apartments, condos, student housing, and senior living facilities.
| Aug 26, 2022
Idaho Building Code Board considers gutting large part of state energy code
Idaho Building Code Board considers gutting large part of state energy code.
Giants 400 | Aug 25, 2022
Top 65 Apartment and Condominium Engineering Firms for 2022
Kimley-Horn, Langan, Thornton Tomasetti, and WSP head the ranking of the nation's largest apartment and condominium engineering and engineering/architecture (EA) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
University Buildings | Aug 25, 2022
Higher education, striving for ‘normal’ again, puts student needs at the center of project planning
Sustainability and design flexibility are what higher education clients are seeking consistently, according to the dozen AEC Giants contacted for this article. “University campuses across North America are commissioning new construction projects designed to make existing buildings and energy systems more sustainable, and are building new flexible learning space that bridge the gap between remote and in-person learning,” say Patrick McCafferty, Arup’s Education Business Leader–Americas East region, and Matt Humphries, Education Business Leader in Canada region.
| Aug 25, 2022
New York City’s congestion pricing aims to reduce traffic, cut carbon
Officials recently released an environmental assessment that analyzes seven different possible pricing schemes for New York City’s congestion pricing program.
Sponsored | BD+C University Course | Aug 24, 2022
Solutions for cladding performance and supply issues
This course covers design considerations and cladding assembly choices for creating high-performance building envelopes — a crucial element in healthy, energy-efficient buildings.
| Aug 24, 2022
California’s investment in ‘community schools’ could transform K-12 education
California has allocated $4.1-billion to develop ‘community schools’ that have the potential to transform K-12 education.
| Aug 24, 2022
Architecture Billings Index slows but remains healthy
For the eighteenth consecutive month architecture firms reported increasing demand for design services in July, according to a new report today from The American Institute of Architects (AIA).
