Engineering Industry Outlook: What the ACEC Q2 2026 Business Sentiment Report Means for AEC Firms
The ACEC Research Institute has released its Engineering Business Sentiment Report for Q2 2026, providing valuable insight into the current state of the engineering industry. The latest data shows an industry that remains fundamentally strong, while becoming increasingly cautious as economic uncertainty continues to grow.
Key Findings
Nearly half of firms report backlogs of one year or more, with the median backlog holding steady at
11 months
64% of firms expect hiring to increase over the next 12 months.
Sentiment toward the U.S. economy dropped sharply quarter-over-quarter, with the 12-month outlook moving into negative territory.
Healthcare insurance costs continue to rise, with 78% of firms reporting premium increases during their latest renewal cycle.
Firms are becoming more selective, prioritizing higher-value and more profitable work as labor and cost pressures persist.
Overall, the report points to an engineering industry that continues to grow, but with greater operational discipline, strategic selectivity, and careful expansion planning than in previous quarters.
The bottom line is clear: engineering firms remain resilient, but the business environment is becoming more complex. Staying informed about these trends can help firms make smarter strategic decisions and position themselves for long-term success.
Read the full Q2 2026 Engineering Business Sentiment Report here:
https://www.acec.org/resource/engineering-business-sentiment-q2-2026/