Future Forward (Powered by ACEC): ACEC Research Institute Study Reveals Economic Impact of Engineering Industry

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In an era marked by volatility—economic, institutional and cultural—the engineering industry continues to be a quiet yet common thread of our communities and an essential force of cohesion for our economy. The work of engineers is the scaffolding of civilization—the structures, systems and processes that make modern existence possible. The roads that connect our communities; the water systems that sustain life; and the structures where we live, learn and heal all are the deliberate work of our industry. But beyond those lifesaving, game-changing contributions is another important story: our industry is an economic engine for the nation.

The ACEC Research Institute’s recently released “Economic Assessment of the Engineering and Design Services Industry” (iimag.link/OTGQD) finds that our economic footprint isn’t just substantial—it’s foundational. In 2024, the engineering and design services industry generated $459 billion in revenue, a 5.3 percent increase over the previous year.

Impressive as that is, this figure only tells part of the story. When the ripple effects of supply chain activity and household spending are factored in, the industry’s total contribution to our nation’s GDP hits $685 billion. It’s a staggering number that goes far beyond just economic output: it’s economic architecture—the framework on which other industries build, grow and thrive.

The Industry Spurs Economic Development

Our industry supports 5.7 million jobs, including 1.7 million directly and millions more indirectly through upstream suppliers and downstream consumer activity. All told, these jobs generate $424.7 billion in labor income. This is more than just money in pockets. It’s homes purchased, tuition fees paid and communities sustained. It’s the dignity of work and the promise of upward mobility. Engineering is the economic lifeblood of families and neighborhoods across the country.

And the public sector benefits as well. Last year, the engineering industry generated $139.5 billion in tax revenue: $94.6 billion at the federal level and an additional $44.8 billion at state and local levels. These funds support public schools, infrastructure maintenance, emergency services and social programs. They’re returns on investment in human ingenuity.

The Impact Is Visible Nationwide

The state-level data also tell a compelling story. Texas led the nation with $96 billion in value added, followed closely by California at $94 billion and Florida at $41 billion. These three states alone accounted for more than one-third of our industry’s national output. They also supported the largest number of jobs: 743,000 in Texas, 640,000 in California and 372,000 in Florida. These figures reflect economic strength, but also strategic advocacy for investment in infrastructure.

The Institute report also highlights our industry’s emerging growth centers. Arizona posted a remarkable 15.2 percent increase in revenue over the previous year, followed by Idaho, Delaware and Mississippi. These states often are overlooked in national conversations but are becoming vital components of the American engineering ecosystem. These numbers serve as a reminder of the ubiquity of engineering innovation. It’s not just about Silicon Valley in California, the Silicon Hills of Texas or the tech centers of Manhattan. Our industry is expanding the map, proving every day that innovation can flourish wherever there’s vision, opportunity and investment.

That said, the report also highlights that our industry isn’t immune to strain. Tariffs and trade uncertainty have disrupted supply chains and inflated costs. Interest rates remain elevated, which discourages investment and delays projects. And, of course, there’s the perennial issue of skilled labor shortages, with firms continuing to turn down work due to insufficient staffing. These are structural challenges that demand responses rooted in both policy and principle.

Opportunities to Seize (and Threats to Manage)

Emerging technologies offer promise, with firms increasingly integrating artificial intelligence (AI) tools to offset staffing gaps and enhance productivity. But the transition is complex. Realizing the promise of AI while at the same time mitigating its potential pitfalls will require new skills and significant investment. The long-term potential benefits are real, but they won’t be realized without deliberate planning as well as ethical and technical stewardship.

This marks the sixth annual release of the Institute’s “Economic Assessment” report. This examination of our industry shows that we continue to enjoy good health. But much like an echocardiogram, these reports are intended to identify issues before they become problems. Whether it’s a clogged artery or a clogged labor pipeline, it’s never best to wait for symptoms to become emergencies.

This report reflects our industry’s strengths, vulnerabilities and potential. Engineering remains the quiet force that makes progress possible. Because when our industry thrives, America builds—not just structures and systems, but futures.

ACEC future forward Greg Kelly