Resource
Executive Summary – 2025 Economic Assessment & Forecast of the Engineering and Design Services Industry
The 2025 Economic Assessment & Forecast, produced by the ACEC Research Institute and conducted by Rockport Analytics, provides a comprehensive analysis of the size, performance, and economic impact of the U.S. engineering and design services industry, along with a forward-looking outlook for growth through 2030. Now in its sixth annual release, the study examines industry revenue, employment, wages, tax contributions, and key market drivers shaping near- and long-term performance. Drawing on public, private, and proprietary data sources, the research equips ACEC members with critical insights to support strategic planning, advocacy, and business decision-making.
Why This Research Matters
- Engineering and design services play a foundational role in delivering the nation’s buildings and infrastructure, yet the industry faces growing macroeconomic uncertainty.
- Elevated interest rates, tariff-driven trade uncertainty, labor shortages, and rising input costs are reshaping project pipelines and firm capacity.
- At the same time, remaining Infrastructure Investment and Jobs Act (IIJA) funding and recent tax policy changes present meaningful tailwinds for industry growth.
Key Findings
- Engineering and design services revenue grew 5.3 percent in 2024, reaching $459 billion, outperforming earlier projections despite mounting economic pressures.
- Industry growth is expected to moderate to 2.3 percent in 2025 as high interest rates and tariff uncertainty weigh on construction activity and capital investment.
- The industry contributed $685 billion to U.S. GDP in 2024, including $262 billion in direct value added and $423 billion from indirect and induced economic activity.
- Engineering and design services directly employed nearly 1.7 million workers and supported a total of 5.7 million jobs across the U.S. economy.
- Federal tax revenues generated by the industry totaled $94.6 billion in 2024, with an additional $44.8 billion in state and local tax contributions.
- Texas ($96 billion), California ($94 billion), and Florida ($41 billion) accounted for more than one-third of total industry economic output nationwide.
Implications for the Industry
The research shows that while near-term growth is slowing, the engineering and design services industry remains a powerful economic engine with strong long-term fundamentals. Remaining IIJA infrastructure funding, tax provisions supporting pass-through entities, and easing monetary policy are expected to partially offset headwinds from tariffs, labor constraints, and elevated borrowing costs. However, staffing shortages and an aging workforce continue to constrain firms’ ability to meet demand, accelerating interest in artificial intelligence and productivity-enhancing technologies.
Methodology
The study uses a combination of data from the Bureau of Economic Analysis, Bureau of Labor Statistics, U.S. Census Bureau, IMPLAN, and proprietary Rockport Analytics models to measure industry performance, economic contribution, and forecast future revenue scenarios through 2030. The analysis reflects conditions through 2024 with projections based on current policy, market, and economic assumptions.
Practical Applications
This research enables engineering firm leaders to benchmark performance, plan for staffing and investment needs, and evaluate market opportunities by sector and geography. Policymakers and advocates can apply these findings to demonstrate the industry’s economic value and inform infrastructure, tax, and workforce policy decisions. Industry stakeholders can use the forecast to anticipate risks, identify growth opportunities, and navigate an evolving economic landscape.