ACEC Research Institute Report Forecasts 4% Market Drop in 2021, 3% Annual Growth in 2022-2024

ACEC News / Market Forecast

March 11, 2021

ACEC Research Institute Report Forecasts 4% Market Drop in 2021, 3% Annual Growth in 2022-2024

The engineering market will decline 4 percent in 2021 before recovering in 2022-2024, according to the 2021-2025 Engineering Industry Forecast released this week by the ACEC Research Institute.

The forecast is the third study in the Research Institute’s Industry Impact Series. Click here to access all three reports.

Like many industries, the engineering sector was hit hard by the COVID-induced downturn. According to the U.S. Census, the engineering and design sector’s revenue declined by 7% in 2020.

According to the Research Institute’s forecast, that decline will continue for the first half of 2021 before the market starts to recover in the second half.

Growth in 2022 and 2024 will average 3 percent annually, primarily due to pandemic-related stimulus spending, and then the market will tail off slightly in 2025.

The report stresses that the forecast is based on the current situation and expectations, with the federal government’s stimulus plans still unformed. If the Biden Administration were to go big with a new and robust infrastructure agenda, market growth would accelerate significantly.

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