10/28/2026
Message from Beth--October 29, 2026
Research That Moves Engineering Forward: The Value of the ACEC Research Institute
Engineering firms must keep pace with changing markets, new technology, and evolving client needs. The ACEC Research Institute helps them do that with timely research focused on the business of engineering.
ACEC Ohio has proudly supported the Institute since its inception. Its data-driven insights help firm leaders spot trends, make informed decisions, strengthen their businesses, and demonstrate the value engineers bring to clients and communities.
Two recently released studies illustrate how the Institute is addressing issues that matter to the business of engineering.
1) Engineering Industry Outlook: 2026 Economic Assessment & Forecast
The latest economic assessment points to continued growth opportunities for engineering and design firms through 2031, driven by investment in public infrastructure, data centers, power, and other engineering-intensive markets.
Key findings include:
- Continued industry growth: Engineering and design services industry revenue is forecast to grow 5.6% in 2026, reaching $506.6 billion, following 4.5% growth in 2025.
- A favorable mix of investment: While total U.S. construction spending is forecast to decline 1.3% in 2026, engineering-intensive construction segments are projected to grow 4.2%, following 6.3% growth in 2025.
- Longer-term opportunity: Industry revenue is projected to reach $635.6 billion by 2031.
- Challenges remain: Financing costs, material-price pressures, policy uncertainty, and shortages of specialized labor continue to constrain the outlook.
2) Beyond the Case for Value-Based Pricing: Creating and Capturing Value
As technology changes how engineering services are delivered, firms also need to reconsider how they price their expertise. This study examines the opportunity to move beyond traditional hourly compensation toward models that better reflect the value created for clients.
Key findings include:
- Value means more than cost savings. Survey respondents identified innovation (22%), risk reduction (21%), specialized capabilities (20%), financial return (19%), and speed (18%) as important dimensions of value.
- AI is changing the business equation. Firms using AI reported average labor savings of approximately 15%, although adoption remains concentrated in activities such as proposal preparation and information synthesis rather than core engineering.
- Productivity must translate into sustainable business value. When technology reduces the hours required to deliver a service, an hours-based pricing model can make it difficult for firms to recover investments in technology, training, data, and innovation—even when clients receive better results.
- Demonstrating value comes first. The study recommends a “Value Ladder”: create something meaningful to the client, demonstrate its value with credible evidence, determine how much value the firm can reasonably capture, and then consider value-based pricing.
- The approach must fit the client. Private-sector clients may offer more flexibility to test alternative pricing models, while public-sector progress can be constrained by procurement policies and agency practices.
Learn More Through Complimentary Future of Engineering Roundtables:
November 5 | Engineering Industry Outlook: 2026 Economic Assessment & Forecast
Get an inside look at the latest economic trends, industry performance, and forecasts shaping the outlook for engineering and design firms.
November 10 | From Digital to Connected: The Current State and Future of Connected Data in Engineering and Infrastructure
Explore how connected data is transforming the way engineering firms collaborate, deliver projects, and create value across the infrastructure lifecycle.
November 19 | State of the Engineering Economy Q4 2026
Hear the latest insights into the economic conditions, business trends, and market forces affecting engineering firms as we close out 2026.
December 1 | Value-Based Pricing in Engineering Services: Creating and Capturing Value
Discover why engineering firms are rethinking traditional pricing models and exploring new ways to capture the value of their expertise and services.
We encourage our members to explore the Institute's research and participate in its upcoming sessions.
~Beth