More than two in three U.S. engineering firm leaders (68%) say the current business climate is better than last year at this time; and three in five (60.5%) say their backlogs are larger now compared to last year, according to results from the American Council of Engineering Companies’ new quarterly Engineering Business Index (EBI).
The EBI, representing responses of 340 engineering firm chairmen, CEOs and presidents had a composite score of 68.9 in the second quarter—a slight increase from 67.4 in the first quarter. The EBI is a diffusion index, consolidating answers to a series of questions about market and firm performance into a single number. Any number over 50 indicates expansion.
Results show that engineering firm leaders are more optimistic about prospects in private sector markets than those in the public sector. At least half believe that opportunities in buildings/commercial (53.3%), land development/surveying (54%), and industrial/manufacturing (50%) will improve over the next 12 months.
Expectations for major public sector markets were markedly lower. Only 41.5% of respondents anticipate improvement in the transportation sector, and only 40.9% believe opportunities in the water/wastewater sector will grow over the next 12 months.
“After years of a stagnant economy, engineers are beginning to see evidence of an improved business climate,” said ACEC President and CEO David A. Raymond. “Uncertainty regarding government funding is obviously dampening expectations for public sector markets.”
For a complete summary of the Summer 2014 EBI survey, go to: www.acec.org
Related Stories
Engineers | Aug 10, 2018
N|V|5 Global offers some of its stock for sale to the public
The proceeds could fuel more acquisitions.
Engineers | Aug 7, 2018
AECOM lends financial support to its employees’ volunteer humanitarian efforts
A grant program backs 25 projects in 15 countries.
Architects | Aug 1, 2018
Client experience as competitive advantage for AEC firms
Clients are looking for solutions to their business problems from collaborative advisors. They’ve come to expect a higher level of service and detail than what was provided in the past.
AEC Tech | Jul 24, 2018
Weidt Group’s Net Energy Optimizer now available as software as a service
The proprietary energy analysis tool is open for use by the public.
Building Owners | Jul 17, 2018
Are we facing a new era in Foreign Direct Investment?
The construction industry is already feeling the effects of the recent tariffs, not only with higher steel and aluminum prices, but with higher prices on Canadian lumber.
Office Buildings | Jul 17, 2018
Transwestern report: Office buildings near transit earn 65% higher lease rates
Analysis of 15 major metros shows the average rent in central business districts was $43.48/sf for transit-accessible buildings versus $26.01/sf for car-dependent buildings.
Adaptive Reuse | Jul 9, 2018
Work, park, live: Inside Cincinnati’s parking garage turned lifestyle hotel
The Summit hotel and conference center is a converted parking garage that was once a factory.
Sustainable Design and Construction | Jul 9, 2018
HGA acquires Wisconsin engineering firm
Sustainable Engineering Group will bolster its new owner’s design and planning abilities.
Accelerate Live! | Jun 24, 2018
Watch all 19 Accelerate Live! talks on demand
BD+C’s second annual Accelerate Live! AEC innovation conference (May 10, 2018, Chicago) featured talks on AI for construction scheduling, regenerative design, the micro-buildings movement, post-occupancy evaluation, predictive visual data analytics, digital fabrication, and more. Take in all 19 talks on demand.
Multifamily Housing | Jun 13, 2018
Multifamily visionaries: KTGY’s extraordinary expectations
KTGY Architecture + Planning keeps pushing the boundaries of multifamily housing design in the U.S., Asia, and the Middle East.