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February 4, 2021

New ACEC Research Institute Study Finds A/E Economic Impact Totals Nearly $600 Billion Annually

New ACEC Research Institute Study Finds A/E Economic Impact Totals Nearly $600 Billion Annually

The Engineering and Architectural industry supports $600 Billion in annual U.S. GDP, according to the 2020 Engineering Industry Economic Contribution study just released by the ACEC Research Institute.

In 2019, the A/E sector’s revenue totaled  $386 billion, and when indirect and induced contributions are added in, the total economic contribution comes to nearly $600 billion, or about 3 percent of the U.S. economy.

“The findings from this new study show the stunning impact our industry has beyond just the engineering sector,” said Linda Bauer Darr, ACEC president and CEO. “The economic footprint of the engineering services sector reaches across virtually every other industry, playing a critical role for the entire U.S. economy.”

Among the key findings in the report:

  • Engineering and architectural industry-supported wages totaled $311 billion.  That includes $142 in direct wages paid within the sector and $169 billion worth of wages in sectors with which the industry does business.
  • The engineering and architectural industry pays its workers a total of $88,000 in annual average wages. In addition, the engineering and architectural industry supports $169 billion in wages being paid to American workers in other industries
  • Total taxes initiated by the engineering and architectural industry is estimated at $122 billion–$83 billion in federal taxes and $39 billion in state and local taxes
  • One in every thirty-three Americans owes his/her job to the engineering and architectural services industry
  • For each new job created in the engineering and architectural industry, two more are generated in sectors that support or benefit from their operations
  • Engineering and architectural state and local tax contributions could cover the costs of 262,000 police officers
  • Take away the engineering and architectural industry and 128.6 million American households would have to pay $948 more in annual taxes to maintain current tax revenues

“The engineering and architectural industries reach goes far and wide showing what a major contributor we are to the U.S. economy and across other industries,” said ACEC Research Institute Chair John Carrato of Alfred Benesch & Company. “By producing this report and giving these numbers perspective, the ACEC Research Institute has created a valuable tool for showing the importance and economic influence of this industry.”

The study is a second of three reports by the ACEC Research Institute on the economic impact of the A/E Industry. The first study is the 2020 Engineering Industry Profile. The third study, which will be released soon, will provide a five-year forecast for the A/E Industry.

Click here to download free copies of the 2020 Engineering Industry Economic Contribution study and the 2020 Engineering Industry Profile

All comments to blog posts will be moderated by ACEC staff.


February 4, 2021



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