The State of the Engineering Economy in Q1 2026
How confident are engineering firm leaders heading into 2026? In this episode of the Engineering Influence Podcast, Jeff Urbanchuk sits down with Joe Bates, Senior Researcher at the ACEC Research Institute, to break down the findings from the newly released Q1 2026 Engineering Business Sentiment Report.
This quarterly report captures insights from CEOs and senior executives at ACEC member firms across the country, offering a real-time look at engineering industry outlook, economic confidence, workforce trends, AI adoption, and federal policy impacts.
Key Topics Covered:
📈 Engineering Industry Outlook 2026 – Why firms are entering the year from a position of strength
💼 Business Sentiment & Economic Confidence – U.S. economy sentiment jumps 11 points to +45 👷 Workforce & Hiring Trends – 9 out of 10 firms still have open positions
💰 Wage Growth Trends – Compensation increases easing from double digits to 6–7%
🏛️ Federal Policy & Government Shutdown Risks – How funding uncertainty is impacting firm confidence
🤖 AI Adoption in Engineering Firms – Nearly half of firms now have an AI strategy in place 📐 Small vs. Large Firm AI Implementation – Why smaller firms may have competitive advantages
🚀 The Firm of the Future Initiative – New research on AI, workforce strategy, value-based pricing, and risk management
