Optimistic Economic Outlook and Challenges for Q1 2024

Engineering Influence from ACEC

The latest episode of the Engineering Influence Podcast, produced by the American Council of Engineering Companies, highlights the Q1 2024 Engineering Business Sentiment Study from the ACEC Research Institute. Download the new report here: https://programs.acec.org/impact-report-21/.

The report indicates an upbeat start to 2024 with a significant positive US economic sentiment. Recession fears have eased, and robust macroeconomic indicators, such as high GDP and low unemployment rates, reinforce the optimistic industry outlook. However, political uncertainty around election year remains a significant worry for future expectations.

The episode delves into the appetite for infrastructure work and the recovery signs in the Commercial Real Estate sector. It also highlights hiring challenges currently dampening industry expansion but indicates increased hiring anticipation amongst firms. A lack of sufficient workers, however, is driving firms to reject business offers and calls for immediate solutions.

The role of Artificial Intelligence (AI) as a potential solution to labor shortage also gets spotlighted in this episode. With a significant number of firms using or developing AI strategies, the overall sentiment is positive about the impact of AI in the year ahead.

Lastly, the episode discusses the importance of effective forecasting and modeling, using a decade’s worth of data. Despite workforce concerns, other indicators suggest a shift towards positivity in the economy, providing a promising glimpse into what lies ahead in the engineering industry.