Message From Beth -- October 26, 2023
ACEC Ohio is a Chair Circle Sponsor of the ACEC Research Institute and enjoys a first look at studies and reports published by the Institute. Two reports have been released this past week that I encourage you to take a look at.
2023 Economic Assessment of the Engineering and Design Industry:
This study is updating that series which aims to describe, measure, and analyze the economic significance of the Engineering and Design Services industry and demonstrate the inextricable partnership between engineering, architects, and other design services to deliver the built environment of the United States.
The engineering industry's total economic contribution to the U.S. economy is $627 Billion with Ohio providing $14.9 Billion to that total!
- The Engineering and Design Services industry grew by 10.9 percent in 2022. This represents the second consecutive year of record-breaking growth.
- While inflation eroded some of these gains, real growth was relatively strong at 7.5 percent.
- Growth continued to be driven by stimulus-fueled recovery from the COVID-19 pandemic, which includes the passing of Infrastructure Investment and Jobs Act (IIJA) and its associated boost to infrastructure investment.
- Other key end-markets fueled the recovery as well, with manufacturing, data center, residential and commercial construction all outperforming last year.
Engineering Business Sentiment 2023 Quarter 4:
Current sentiment remains very optimistic within most market sectors; however, two-thirds saw declines this quarter. Rising concerns over inflation (84%), political environment/uncertainty (77%) and increasing interest rates (72%) are fueling negative future sentiment.
- While most market sectors still have a positive Net Rating, all but one (Data Centers) have seen decreases from last quarter.
- More than half (52%) believe their firms will see a higher backlog of projects 12 months from now.
- Eighty-seven percent currently indicate their firm has at least one opening, the same as last quarter. The median number of open positions also remained steady at four.
- Executives are more anxious about the impact of inflation on their firms, once again returning to levels seen in the first two quarters of 2023.
Join the Future of Engineering Roundtable sessions for free:
November 15, 12:30PM EST: ACEC Research Institute 4th Annual Industry Economic Update and Forecast 2023-2028 – Register today!
November 29, 12:30PM EST: State of the Engineering Economy – Q4 2023 – Register today!
Please feel free to reach out to me with any questions you may have!