Engineering firms maintain strong confidence in financial position and industry fundamentals amid headwinds, while optimism about the broader U.S. economy weakens significantly, according to the fourth quarter 2025 Engineering Business Sentiment report released by the ACEC Research Institute.
The quarterly study reveals a divergence; firms report robust net ratings for their own finances (+84) and the engineering industry overall (+72), while sentiment about the U.S. economy dropped 16 points to +34 compared to the previous quarter. Additional key findings from the report include:
The report’s special focus on artificial intelligence reveals an industry still in the experimental phase of AI adoption. Only 25% of firms report no AI implementation in operations. Most firms have either limited implementation (37%) or pilot projects (26%). Finally, widespread AI integration remains rare across all business functions.
While future sentiment has moderated from earlier in 2025, the engineering industry’s fundamental strength positions it well to weather potential economic challenges. The combination of backlogs, continued hiring demand and sustained investment in sectors like data centers and energy infrastructure suggests the industry will continue to play a vital role in the nation’s economic development.
