Research Institute Market Briefing (hosted by MIC)-Research Institute Market Briefing (hosted by MIC) Recording

Video Transcription

Video Summary

In this 2025 ACEC Market Briefing, Joe Bates and Thomas Grogan present insights from the Q1 2025 Engineering Business Sentiment Survey, focusing on economic trends and sector-specific performance. The U.S. economy shows mixed signals: Q4 2024 GDP was softer than expected at 2.4%, while early 2025 data indicate slowing job growth and flat consumer spending, with inflation remaining above the Federal Reserve's 2% target. Tariffs and related uncertainties contribute to inflation and supply chain concerns, complicating forecasting and market stability, especially with volatile interest rates impacting housing. AE (architecture and engineering) services reached record revenues in 2024, though growth is moderating. Certain sectors like data centers, water, energy, and transportation remain strong, while commercial, healthcare, and highway markets face challenges partly due to interest rates and work-from-home trends. Business sentiment, which had peaked early in 2025, has sharply declined amid economic uncertainties, with firms expressing concern over future backlogs and finances despite steady current workloads. Labor shortages persist industry-wide, and automation is seen as a potential, though slow, partial solution. Future forecasts anticipate moderating growth and increased caution, with sentiment serving as a leading indicator of broader economic shifts. Overall, ongoing uncertainty, particularly surrounding tariffs and inflation, casts a cautious outlook for the near term.

Keywords

2025 ACEC Market Briefing

Engineering Business Sentiment Survey

U.S. economic trends

inflation and tariffs

architecture and engineering services

sector-specific performance

labor shortages

automation in engineering

economic uncertainty