Engineering and Design Services Industry Forecast
If you're considering a career in engineering, architecture, or design, ACEC’s Economic Assessment of the Engineering and Design Services Industry offers a valuable look at the future you're stepping into.
This report analyzes the economic footprint of the industry across the built environment, showing just how essential these professions are to everything from infrastructure to innovation. Using data from public, private, and proprietary sources, it provides a clear picture of industry size, growth potential, and evolving opportunities. For young career-seekers, understanding these trends can help you make informed decisions, identify high-demand areas, and see how your skills can contribute to solving real-world challenges.
Key Findings:
- Steady Growth:
- The Engineering and Design Services industry grew by 5.5 percent in 2023, driven by public infrastructure projects. This marked a return to pre-pandemic growth patterns.
- Adjusted for inflation, real growth was 1.3 percent.
- Key contributing sectors included manufacturing (recovered by over 50 percent), lodging, education, and communication projects.
- Construction growth in 2024 is expected to remain near 6 percent, with a slowdown in non-residential/nonbuilding construction but a recovery in residential construction.
- Economic and Fiscal Impact:
- In 2023, the industry added $656 billion to the U.S. GDP and supported over 5.6 million jobs, directly and indirectly.
- Every dollar that the Engineering and Design Services industry produces results in $1.50 added to U.S. GDP.
- In 2023, the industry generated a total of $91.8 billion in federal tax receipts and an additional $43.5 billion in state and local receipts.
- Labor Shortages and Skills Gap:
- The aging workforce and ongoing labor shortages, especially in skilled roles, continue to pose significant challenges.
- Industry employment grew by 3.4 percent in 2023, outpacing output growth, but shortages persist despite a slight decrease in job openings versus new hires.
- Wage growth slowed to 4.3 percent in 2023 (down from 4.6 percent in 2022), with early 2024 figures showing a 5.2 percent wage increase, though stabilization is expected.