New! Engineering Industry’s Economic Impact

New ACEC Research Shows Engineering and Design Services Industry Contributed $685 Billion to U.S. GDP in 2024 Despite Economic Headwinds

 The ACEC Research Institute released its 2025 Economic Assessment of the Engineering and Design Services Industry at the American Council of Engineering Companies’ Fall Conference in San Diego. The new research conducted by Rockport Analytics reveals that the engineering and design services sector continues to be a cornerstone of the U.S. economy, contributing $685 billion to GDP and supporting 5.7 million jobs nationwide in 2024.

The sixth annual study shows that industry revenue reached $459 billion in 2024, growing 5.3% over the previous year. However, growth is expected to moderate to 2.3% in 2025 as firms navigate a complex economic landscape marked by persistent tariff uncertainty, elevated interest rates, and ongoing labor shortages.

“Engineering and design firms are continuing to deliver incredible economic impact to the nation by creating jobs, driving innovation, and enabling infrastructure and development in every community,” said Steve Lefton, chair of the ACEC Research Institute. “Even amid challenges such as tariffs, workforce shortages, and inflationary pressures, our industry remains resilient and essential to America’s growth.”

The report also highlights that the industry directly employs 1.7 million Americans, generating $424.7 billion in labor income. Federal, state, and local tax revenues generated by the sector totaled nearly $140 billion, underscoring the profession’s substantial fiscal contribution.

Regional and Sector Highlights

• Texas ($96 billion) and California ($94 billion) led all states in total economic value added, with Florida ($41 billion) ranking third. Together, the three states represented more than one-third of national output.
• The Mountain Region posted the strongest revenue growth in 2024 at 8.2%, led by Idaho, Arizona, and Montana.
• Arizona saw the fastest wage growth nationwide at 17.2%.
• The average wage in the engineering and design services industry climbed to $114,725, more than 50% above the U.S. average wage.

Challenges and Opportunities Ahead

Despite strong fundamentals, the report warns that labor shortages and an aging workforce continue to constrain growth. More than half of ACEC member firms reported turning down projects due to insufficient staffing. The study also found that degree completions in engineering and architecture have remained flat since 2020, even as demand continues to rise.

To address these constraints, firms are increasingly adopting artificial intelligence tools to enhance productivity, automate drawing reviews, and optimize project delivery though the long-term productivity gains may take time to materialize.

On the policy front, the study notes that Bipartisan Infrastructure Law funding and the extension of key tax provisions under the recent tax bill are expected to provide significant tailwinds, boosting project financing and capital investment into 2026.

“The engineering industry stands at the intersection of infrastructure, innovation, and workforce transformation,” said Joe Bates, senior research consultant with the ACEC Research Institute. “This new research underscores how vital engineering firms are, not just to the built environment, but to America’s overall economic health and competitiveness.”

About the Study

The 2025 Economic Assessment of the Engineering and Design Services Industry was conducted by Rockport Analytics for the ACEC Research Institute. It uses a mix of public, private, and proprietary data to analyze industry performance, employment, wages, and long-term trends. The research builds on ACEC’s Industry Impact Series, first launched in 2020, to provide comprehensive insights into the business climate for America’s engineering firms.