Resource
Executive Summary – Engineering Business Sentiment
2025 Q4 Engineering Business Sentiment Survey
The 2025 Q4 Engineering Business Sentiment survey, produced by the ACEC Research Institute, provides a real-time snapshot of how engineering firm leaders view current and future business conditions across the U.S. engineering and design services industry. Based on responses from more than 700 executives nationwide, the survey shows an industry that remains confident in its own financial health and market demand, even as optimism about the broader U.S. economy softens. The findings highlight continued resilience, strong backlogs, and sustained hiring intentions, alongside growing concern about political uncertainty, inflation, tariffs, and recession risk.
Why This Research Matters
- Engineering firms are navigating a complex economic environment shaped by elevated interest rates, geopolitical uncertainty, and policy volatility.
- Despite macroeconomic headwinds, firm leaders continue to report strong operational fundamentals and sector-level demand.
- Understanding short-term sentiment helps firm leaders, policymakers, and industry stakeholders anticipate investment, hiring, and capacity decisions before they appear in lagging economic data.
Key Findings
- Current business sentiment remains strong, with high Net Ratings for firm finances (+84) and the engineering and design services industry overall (+72), even as optimism about the U.S. economy declined to +34.
- Backlogs remain healthy, with 48 percent of firms reporting one year or more of work on hand and a median backlog of 11 months.
- Hiring pressure persists across the industry: 92 percent of firms report at least one open position, and firms project continued hiring growth over the next 12 months, with a Net Rating of +57.
- Looking ahead, expectations for the U.S. economy 12 months from now have turned slightly negative (-4), driven primarily by political uncertainty (89 percent) and general economic uncertainty (77 percent).
- Data Centers and Energy & Utilities continue to lead all market sectors in both current and future sentiment, while several public-sector markets show more tempered outlooks.
Hot Topics: Technology and Workforce Insights
The survey highlights early-stage adoption of artificial intelligence across engineering firms. Most organizations are experimenting with pilot projects or limited implementations rather than enterprise-wide integration. Workforce challenges remain acute: nearly half of firms employ at least one H-1B visa holder, and 62 percent support expanding the program, though 96 percent report they would be less likely to hire if faced with a proposed $100,000 per-hire fee.
Methodology
The survey was conducted between October 28 and November 10, 2025, during a federal government shutdown. A total of 710 executives from ACEC member firms completed the survey, representing firms of all sizes and regions. Results are statistically evaluated at a 95 percent confidence level. A Net Rating system is used to measure overall optimism or pessimism.
Practical Applications
This research enables engineering firm leaders to benchmark sentiment, staffing plans, and backlog expectations against industry peers. Policymakers and advocates can use the findings to understand workforce constraints, economic risk perceptions, and the potential impacts of regulatory and immigration policy decisions. Industry stakeholders can apply these insights to anticipate market shifts and guide near-term strategic planning.