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ACEC Research Institute Reports Engineering and Design Industry grew by more than 5% and added $656 billion to the U.S. GDP in 2023

The ACEC Research Institute – the leading source of original research for the business of engineering – released the results of two important studies on the current and future state of the engineering industry, and its role in the overall U.S. economy.

The reports, the 2024 Economic Assessment of the Engineering & Design Services Industry and the Engineering Business Sentiment Report for 2024 Q4, both point to continued optimism for the industry and its firms, though somewhat softened compared to previous quarters.

“This research shows the outsized impact the engineering industry has on the American economy,” said ACEC Research Institute Chair Mike Carragher. “As the engineering industry’s contributions grow year over year, the Institute’s research helps firm executives position their businesses for a successful future.”

2024 Economic Assessment of the Engineering & Design Services Industry

Conducted by Rockport Analytics and unveiled during ACEC’s Fall Conference in New Orleans, the 2024 Economic Assessment of the Engineering and Design Services Industry – now in its fifth annual release – focused on the key economic drivers of the engineering and design services industry.

As in its four previous iterations, it sought to describe, measure, and analyze the economic impact of the engineering industry, and to highlight its direct connection to the health of the U.S. economy.

All told, the industry added $656 billion to the U.S. GDP in 2023, supported well over five million jobs directly or indirectly, and contributed $92 billion to federal tax coffers, with an additional $44 billion in state and local taxes.

Overall, the Report found that the engineering and design services industry has continued to build on its year-over-year post-COVID gains, growing 5.5% in 2023 to $436 billion, with much of that growth driven by infrastructure projects. Non-residential and non-building construction, flush with government funding through the IIJA and Inflation Reduction Act, remained on an upward trajectory.

This year’s Report also examined for the first time the potential impact of emerging technologies on the engineering and design services industry. With AI identified as a key trend, the authors note that these technologies are rapidly gaining traction with firms. “Currently, around one-third of firms are either implementing or planning to incorporate AI into their workflows,” the authors write.

Engineering Business Sentiment Report for 2024 Q4

For the Q4 2024 Engineering Business Sentiment Report, ACEC member firm leaders from around the country and from firms of all sizes were asked to weigh in on the current state of the industry and its direction. Their responses pointed to yet another quarter of solid growth for engineering firms, along with widespread optimism that growth will continue. Respondents were especially bullish on the sectors involving Water and Wastewater along with Roads and Bridges.

Workforce challenges were once again a persistent theme throughout the responses, with more than half of firms (51%) reporting that they continue to turn down work due to labor shortages. Twenty-six percent of firms also indicate they are turning down good, profitable projects. That represents a 2% increase from Q1 2024.

Both reports can be found on the ACEC Research Institute website.

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The ACEC Research Institute is the independent research arm of the American Council of Engineering Companies (ACEC) — the business association of the nation’s engineering industry. The ACEC Research Institute’s mission is to deliver knowledge and business strategies that guide and elevate the engineering industry and to be the leading source of knowledge and thought leadership for creating a more sustainable, safe, secure, and technically advanced built environment.

Date

October 23, 2024

Category

ACEC NEWS

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