ACEC Ohio is a sponsor of the ACEC Research Institute, the Institute recently released the 2024 Q2 Engineering Business Sentiment Report. Click here for report. According to the report, the engineering industry continues to shine brightly with positive sentiments echoing across various market sectors. According to the latest data, firm’s financial outlook and business sentiment are exceptionally strong. Other key insights include:
Steady Backlogs and Employment Opportunities
Firm backlogs remain steady, with a median of 11 months for the past year and a half. Half of the firm executives report a current backlog of one year or more, indicating a healthy pipeline of projects. Employment opportunities are also robust, with 89% of firms having at least one open position and a median of five open positions per firm.
Future Business Sentiment
Looking ahead, the future sentiment across all metrics remains positive, though there are slight declines in specific areas. The sentiment for the U.S. economy improved by one point to +10 from the last quarter, while industry sentiment dipped four points to +26, and firm finances dropped three points to +45. Despite these minor declines, the overall outlook is much brighter than it was a year ago.
Key Concerns and Challenges
Several concerns continue to cloud the future sentiment. Political uncertainty, inflation, and general economic uncertainty are the top worries, affecting 86%, 81%, and 74% of respondents, respectively. However, the industry’s outlook remains positive in most sectors, especially in Transportation - Roads/Bridges (+46), Energy and Utilities (+45), and Water/Wastewater (+43).
Ohio’s Engineering Industry Economic Impact
In Ohio, the engineering industry is a powerhouse, contributing $15 billion to the state’s GDP. It supports 141,000 jobs, adding $8.9 billion in total wages. The industry also generates $2.1 billion in federal taxes and $915 million in state and local taxes, highlighting its critical role in Ohio’s economic health and development. Click here for Ohios fact sheet.
Ohio’s engineering sector not only contributes significantly to the state’s economy but also continues to provide ample employment opportunities and supports substantial tax revenues. As we move forward, maintaining this positive trajectory will be key to sustaining economic growth and development in the region.
Looking forward to seeing you at the ACEC Ohio Annual Meeting on June 6th!
~Beth