The State of the Engineering Economy in Q1 2026

How confident are engineering firm leaders heading into 2026? In this episode of the Engineering Influence Podcast, Jeff Urbanchuk sits down with Joe Bates, Senior Researcher at the ACEC Research Institute, to break down the findings from the newly released Q1 2026 Engineering Business Sentiment Report.

This quarterly report captures insights from CEOs and senior executives at ACEC member firms across the country, offering a real-time look at engineering industry outlook, economic confidence, workforce trends, AI adoption, and federal policy impacts.

Key Topics Covered:
📈 Engineering Industry Outlook 2026 – Why firms are entering the year from a position of strength
💼 Business Sentiment & Economic Confidence – U.S. economy sentiment jumps 11 points to +45
👷 Workforce & Hiring Trends – 9 out of 10 firms still have open positions
💰 Wage Growth Trends – Compensation increases easing from double digits to 6–7%
🏛️ Federal Policy & Government Shutdown Risks – How funding uncertainty is impacting firm confidence
🤖 AI Adoption in Engineering Firms – Nearly half of firms now have an AI strategy in place
📐 Small vs. Large Firm AI Implementation – Why smaller firms may have competitive advantages
🚀 The Firm of the Future Initiative – New research on AI, workforce strategy, value-based pricing, and risk management

Learn more at www.acecresearchinstitute.org.
Download the Full Report: https://www.acec.org/resource/engineering-business-sentiment-q1-2026/

Engineering Outlook 2025: Growth, Tariffs & the Workforce Crunch

In this episode, we sit down with Jon Gray of Rockport Analytics. He shares an in-depth look at the economic outlook for the engineering and design industry.

Gray explores how firms are navigating a complex landscape — balancing continued revenue and employment growth with new challenges on the horizon. He discusses the slower-than-expected rollout of IIJA funds, uncertainty surrounding tariffs, and the growing strain of workforce shortages influenced by immigration trends.

The conversation also turns toward the future: how artificial intelligence could become both a productivity catalyst and a transformative force, reshaping how engineering firms manage projects, talent, and technology.

Whether you’re an industry leader, economist, or engineer, this episode offers valuable insights into what’s driving today’s market — and what lies ahead for the business of engineering.

Engineering Outlook 2025: Sentiment Surges as Uncertainty Lingers

From the 2025 ACEC Fall Conference in San Diego, Joe Bates of the ACEC Research Institute discusses the latest economic sentiment rebound, rising concerns about inflation and the firm finances that remain strong.

He previews the Firm of the Future initiative and a comprehensive workforce study showing a persistent talent shortfall—exacerbated by H-1B and visa limits that prevent many international engineering graduates from staying in the U.S.

The episode also covers skills gaps, generational differences, and the role of AI as a productivity tool (not a workforce panacea), plus upcoming research and practical takeaways for firms planning through 2035.

Engineers are More Optimistic on the Economy - New Poll! #podcast #economy #engineering

When the ACEC Research Institute last surveyed engineering firms in April 2025 about their business outlook, the results painted an ominous picture of the economy in general which bled over to concern about the future of the industry. Since that time, the outlook has improved considerably but is not as positive as in Q1 2025. The following are some key observations from the ACEC Research Institute’s Business Climate Lightning Poll conducted among 548 respondents from June 2-9, 2025. Access the findings: https://www.acec.org/resource/acec-research-institute-business-climate-lightning-poll-june-2025/