U.S. engineering firm CEOs remain encouraged about overall company performance and market trends. They also see strong signs of recovery in industry employment, this according to the latest ACEC Engineering Business Index (EBI), which charts the health of the engineering industry.
EBI is a diffusion index, consolidating hundreds of engineering leader responses nationwide on market and firm performance into a single “confidence” number. Any score over 50 indicates expansion.
The third quarter EBI (Q3), conducted Sept. 17 to Oct. 3 of 275 engineering CEOs, presidents and chairmen, produced a positive composite score of 68.8, virtually unchanged from 68.9 in the second quarter.
Survey respondents reported a strong rebound in hiring: 67.4% said employment at their firm was equal to or higher now than pre-recession (2008) levels; 25% said employment was “at least 10%” higher. Only 32.7% said employment was lower.
Engineering leaders remained encouraged by company performance: 65% reported higher backlogs compared to this time last year—significantly more than the 51% in the second quarter. Almost half of Q3 respondents (49.3%) expect backlogs to increase further over the next 12 months.
Respondents also believe most private markets will continue to thrive: 61.7% expect improvement over the coming year in Land Development, 56.1% in Energy and Power, and 53.1% in Buildings and Commercial.
Public market expectations, however, continue to lag: only 43.8% of respondents believe the Water and Wastewater segment will improve by next year; only 39.7% said Transportation will improve.
For the complete Q3 summary of ACEC’s Engineering Business Index (EBI) go to www.acec.org.
Related Stories
Architects | Sep 14, 2018
We’ve entered the golden age of brain science. What does it mean for AEC firms?
New research from the SMPS Foundation explores the known principles and most recent research surrounding the human brain and behavioral science. The goal: to discover connections between the science and the AEC business.
Architects | Aug 1, 2018
Client experience as competitive advantage for AEC firms
Clients are looking for solutions to their business problems from collaborative advisors. They’ve come to expect a higher level of service and detail than what was provided in the past.
AEC Tech | Jul 24, 2018
Weidt Group’s Net Energy Optimizer now available as software as a service
The proprietary energy analysis tool is open for use by the public.
Building Owners | Jul 17, 2018
Are we facing a new era in Foreign Direct Investment?
The construction industry is already feeling the effects of the recent tariffs, not only with higher steel and aluminum prices, but with higher prices on Canadian lumber.
Office Buildings | Jul 17, 2018
Transwestern report: Office buildings near transit earn 65% higher lease rates
Analysis of 15 major metros shows the average rent in central business districts was $43.48/sf for transit-accessible buildings versus $26.01/sf for car-dependent buildings.
Adaptive Reuse | Jul 9, 2018
Work, park, live: Inside Cincinnati’s parking garage turned lifestyle hotel
The Summit hotel and conference center is a converted parking garage that was once a factory.
Accelerate Live! | Jun 24, 2018
Watch all 19 Accelerate Live! talks on demand
BD+C’s second annual Accelerate Live! AEC innovation conference (May 10, 2018, Chicago) featured talks on AI for construction scheduling, regenerative design, the micro-buildings movement, post-occupancy evaluation, predictive visual data analytics, digital fabrication, and more. Take in all 19 talks on demand.
Multifamily Housing | Jun 13, 2018
Multifamily visionaries: KTGY’s extraordinary expectations
KTGY Architecture + Planning keeps pushing the boundaries of multifamily housing design in the U.S., Asia, and the Middle East.
| Jun 11, 2018
Accelerate Live! talk: Regenerative design — When sustainability is not enough
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), HMC’s Eric Carbonnier poses the question: What if buildings could actually rejuvenate ecosystems?
| Jun 11, 2018
Accelerate Live! talk: The smart jobsite — Predictive visual data analytics for proactive project controls
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), a trio of experts in predictive visual data analytics presents how design-build giant Clayco has leveraged this technology to achieve production efficiency on several construction sites.
