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
| Aug 2, 2013
Michael Baker Corp. agrees to be acquired by Integrated Mission Solutions
Michael Baker Corporation (“Baker”) (NYSE MKT:BKR) announced today that it has entered into a definitive merger agreement to be acquired by Integrated Mission Solutions, LLC (“IMS”), an affiliate of DC Capital Partners, LLC (“DC Capital”).
| Aug 1, 2013
BIM and O+M: Are facility managers ready for the 3D world?
Although I am encouraged to see BIM for O+M mandates coming from building owners, I can’t help but feel we’re overlooking a very important part of the handover process: making O+M information easily accessible.
| Jul 31, 2013
15 innovations impacting higher education
Colleges must become more nimble, entrepreneurial, student-focused, and accountable for what students learn, according to Steven Mintz, Executive Director of the University of Texas system’s Institute for Transformational Learning. Mintz offers 15 innovations in higher education.
| Jul 31, 2013
Hotel, retail sectors bright spots of sluggish nonresidential construction market
A disappointing recovery of the U.S. economy is limiting need for new nonresidential building activity, said AIA Chief Economist, Kermit Baker in the AIA's semi-annual Consensus Construction Forecast, released today. As a result, AIA reduced its projections for 2013 spending to 2.3%.
| Jul 30, 2013
Better planning and delivery sought for VA healthcare facilities
Making Veterans Administration healthcare projects “better planned, better delivered” is the new goal of the VA’s Office of Construction and Facilities Management.
| Jul 30, 2013
Healthcare designers get an earful about controlling medical costs
At the current pace, in 2020 the U.S. will spend $4.2 trillion a year on healthcare; unchecked, waste would hit $1.2 trillion. Yet “waste” is keeping a lot of poorly performing hospitals in business, said healthcare facility experts at the recent American College of Healthcare Architects/AIA Academy of Architecture for Health Summer Leadership Summit in Chicago.
| Jul 30, 2013
Healthcare designers and builders, beware: the ‘Obamacare’ clock is ticking down to midnight [2013 Giants 300 Report]
Hard to believe, but we’re only six months away from when the Affordable Care Act will usher in a radical transformation of the American healthcare system. Healthcare operators are scrambling to decipher what the new law will mean to their bottom lines and capital facility budgets.
| Jul 30, 2013
Top Healthcare Sector Architecture Firms [2013 Giants 300 Report]
HDR, HKS, Cannon top Building Design+Construction's 2013 ranking of the largest healthcare architecture and architecture/engineering firms in the U.S.
| Jul 30, 2013
Top Healthcare Sector Engineering Firms [2013 Giants 300 Report]
AECOM, Jacobs, URS top Building Design+Construction's 2013 ranking of the largest healthcare engineering and engineering/architecture firms in the U.S.
| Jul 29, 2013
VIESTE, ESD team up to design net zero data centers nationwide
VIESTE Energy, LLC has teamed up with ESD (Environmental Systems Design, Inc.) to design a national portfolio of net zero data centers.
