The Trump Administration’s plans for infrastructure investment, regulatory reform, and tax relief have ignited a burst of enthusiasm among U.S. engineering firm leaders, propelling the American Council of Engineering Companies’ Engineering Business Index (EBI) to its largest ever quarterly increase.
The 4th Quarter 2016 (Q4/2016) EBI surged 5.1 points to 66.5, up from the 61.4 score of Q3/2016. The previous largest increase was 1.5 points between the Q1/2014 and Q2/2014 surveys. Any score above 50 signifies that the market is growing The EBI is a leading indicator of America’s economic health based on the business performance and projections of engineering firms responsible for developing the nation’s transportation, water, energy, and industrial infrastructure. The Q4/2016 survey of 317 engineering firm leaders was conducted November 31 to December 20.
Survey results show firm leader market expectations for one year from today rose a hefty 8.8 points to 72.1, the largest quarter-over-quarter increase since the EBI’s inception in January 2014. Expectations for both short- and long-term profitability also climbed. Firm leader optimism for improved profitability over the next six months rose 3.6 points to 69.0; increased to 72.9 for one year from now; and climbed 2.9 points to 70.5 for three years from now.
“We finally have a president who understands business!” says one respondent. “We’re looking forward to some significant tax relief with the new Administration,” says another.
The boost in firm leader optimism extends across almost the entire engineering marketplace. In public markets, transportation showed the strongest increase, up an eye-catching 9.5 points to 73.7.
All other public market sectors rose: Water and Wastewater (up 7.5, to 70.5), Education (up 3.2 to 58.2) Health Care (up 0.3, to 56.1), and Environmental (up 1.1 to 55.4). A new public sector category, Buildings, debuted at 65.2. Among the private client markets, firm leaders were most bullish about the Industrial/Manufacturing sector, which leaped up 12.5 points to 70.7. Four key private sector markets also climbed: Energy and Power (up 8.8, to 69.2), Land Development (up 8.2, to 68.4.), Buildings (up 4.1 to 67.0), and Education (up 5.2, to 58.5).
For the complete Quarter 4, 2016 Engineering Business Index, go to www.acec.org.
Related Stories
Market Data | Apr 21, 2020
5 must reads for the AEC industry today: April 21, 2020
IoT system helps contractors keep their distance and the multifamily market flattens.
Market Data | Apr 20, 2020
6 must reads for the AEC industry today: April 20, 2020
The continent's tallest living wall and NMHC survey shows significant delays in apartment construction.
Market Data | Apr 17, 2020
Construction employment declines in 20 states and D.C. in March, in line with industry survey showing growing job losses for the sector
New monthly job loss data foreshadows more layoffs amid project cancellations and state cutbacks in road projects as association calls for more small business relief and immediate aid for highway funding.
Market Data | Apr 17, 2020
5 must reads for the AEC industry today: April 17, 2020
Meet the 'AEC outsiders' pushing the industry forward and the world's largest Living Building.
Market Data | Apr 16, 2020
5 must reads for the AEC industry today: April 16, 2020
The SMPS Foundation and Building Design+Construction are studying the impact of the coronavirus pandemic on the ability to attain and retain clients and conduct projects and Saks Fifth Avenue plans a sanitized post-coronavirus opening.
Market Data | Apr 15, 2020
5 must reads for the AEC industry today: April 15, 2020
Buildings as "open source platforms" and 3D printing finds its grove producing face shields.
Market Data | Apr 14, 2020
6 must reads for the AEC industry today: April 14, 2020
A robot dog conducts site inspections and going to the library with little kids just got easier.
Market Data | Apr 13, 2020
6 must reads for the AEC industry today: April 13, 2020
How prefab can enable the AEC industry to quickly create new hospital beds and Abu Dhabi launches a design competition focused on reducing urban heat island effect.
Market Data | Apr 10, 2020
5 must reads for the AEC industry today: April 10, 2020
Designing for the next generation of student life and a mass timber Ramada Hotel rises in British Columbia.
Market Data | Apr 9, 2020
7 must reads for the AEC industry today: April 9, 2020
Urine could be the key to building in outer space and how to turn a high school into a patient care center in just over two weeks.