New Q2 ACEC Research Institute Survey

Engineering Leaders Report Strong Current Business Conditions, Heightened Concerns for the Future

Despite continued strength in the fundamentals of their own businesses, engineering firm executives are expressing growing concern about the broader economic and political landscape in the coming year, according to the latest quarterly Engineering Business Sentiment Study released by the ACEC Research Institute. 

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Current Business Conditions Remain Strong 

The Q2 2025 survey shows engineering firms continue to operate from a position of financial strength.  

The survey uses a net ratings system from 0 to 100 to measure the confidence levels of firm executives. 

• A Net Rating of +82 for firm finances and +73 for the overall engineering industry indicates broad current optimism. 

• Nearly half (47%) of firms report having a project backlog of one year or more. 

• 87% of firms have at least one open position, signaling sustained demand for talent across the sector. 

Market optimism is particularly high in Data Centers (+78) and Water/Wastewater (+76), sectors that continue to show strong project pipelines. 

Future Outlook Dampened by Political and Economic Uncertainty 

However, forward-looking indicators in the study point to a more cautious outlook: 

• Net Ratings for future conditions fell to -29 for the U.S. economy, -12 for the industry, and +17 for firm finances— all sharp declines from Q1 2025. 

• The expected backlog of projects for firms 12 months from now dropped 38 points, with only 33% of leaders anticipating an increase. 

• Inflation concerns increased 28 points from last quarter and six points since this time last year.  

• The perceived likelihood of a recession in the next six months rose 19 points from last quarter and 14 points from one year ago. It now stands at 54%. 

“The economic sentiment has undergone one of the largest one-quarter drops we’ve ever recorded,” said Joe Bates, senior research consultant at the ACEC Research Institute. “This speaks to rising unease about macroeconomic forces beyond our industry.” 

Policy, Workforce, and Workplace Trends in Focus 

• 67% of firm leaders support Congress making the 2017 Tax Cuts and Jobs Act permanent. 

• Remote and hybrid work remains widespread, with 88% of firms offering flexibility. Only 12% require full-time in-office work. 

About the Study 

The ACEC Research Institute conducted the Q2 2025 survey between April 1–14. The study collected responses from 582 senior leaders across the U.S. engineering sector.  

The full report is available at www.acecresearchinstitute.org. 

 

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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.