PRESS RELEASES
Update from the American Council of Engineering Companies
November 11, 2024
While the vote counting is still happening with a number of congressional races around the country, we wanted to give you some initial perspectives:
- Stating the obvious here – Republicans had a good night. Former President Trump won all 7 “Toss-Up” states which put him over the 270 electoral college votes threshold. As we expected, control of the US Senate flipped to the GOP with 52 members and the possibility of gaining an additional 2 or 3 seats from states that are too close to call. There will be at least 11 new senators with a potential for an additional 3 depending on the remaining races to be called. Republicans are poised to keep control of the US House, needing an additional 12 seats out of the remaining 47 that are uncalled at this point;
- ACEC’s win/loss record so far: House: 269 wins, 6 losses, 25 races undecided; Senate: 15 wins, 1 loss 3 undecided;
- Standout races: Rep. Don Bacon (R-NE) won in a Democrat favored race and is one of the four remaining GOP House members that voted for the IIJA. Other notable wins for ACEC-backed candidates in competitive districts include Rep. Brian Fitzpatrick (R-PA), Chair of the Problem Solvers Caucus and a member of the Ways & Means Committee; Rep. Sharice Davids (D-KS), a member of the Transportation & Infrastructure Committee; and Rep. Angie Craig (D-MN) who serves on the Energy & Commerce Committee. On the flip side, ACEC/PAC supported incumbents and candidates that lost include Rep. Lori Chavez-DeRemer (R-OR), 2 GOP members from New York — Reps. Marc Molinaro and Brandon Williams — and former Michigan State Senator Curtis Hertel (D-MI).
What does a Republican sweep mean in terms of key ACEC priorities in the new Congress?
- Tax policy — If Republicans retain control of the House – which we expect – a major priority will be to extend the expiring portions of the 2017 Tax Cuts and Jobs Act. While the margin in the Senate may be better for Republicans than in 2017 (which was 52-48), the Republican margin in the House was 241-194 in 2017 but may only be single digits next year. Also, as mentioned previously, concerns over the national debt – which was $20 trillion in 2017 and currently exceeds $35 trillion – will loom larger over the debate in 2025. The key players on the tax writing committees won’t change, but Republicans take over the leadership: Ways and Means Chair will be Rep. Jason Smith (R-MO), and the ranking member will be Rep. Richard Neal (D-MA). In the Senate, Senator Mike Crapo takes over as Chair of the Senate Finance Committee, while Senator Ron Wyden (D-OR) will be the ranking Democrat. It was Senator Crapo who pumped the brakes on the House-passed tax bill that restored the deductibility on R&D expenses (although he wasn’t opposed to that piece of the package). Senator Crapo supports the extension of TCJA and opposes raising the corporate tax rate. He has also suggested that extension of TCJA – because it is current policy – should not have a budgetary impact. The Democratic side of the Senate Finance Committee will look very different in the next Congress, due to three retirements (Senators Stabenow, Carper, and Cardin), one election defeat (Senator Brown), one open seat (resignation of Senator Menendez), and one race not yet called (Senator Casey). Given the change in control of the Senate, the overall number of Democrats on the committee will shrink.
- Infrastructure — the Trump Administration will oversee implementation of the last two years of the IIJA, including the allocation of billions in discretionary grants. Emphasis will shift away from grant criteria focused on climate resilience, sustainability, equity and justice considerations with more focus on traditional road and bridge projects. The Administration may also look at the potential rescission or reallocation of some unspent funds, including high-speed rail programs. The reauthorization of surface transportation programs in 2026 will largely be led by congressional committees of jurisdiction. That has traditionally been a bipartisan exercise and may be again, particularly if the margins of control are very narrow. In the Senate, Shelley Moore Capito (R-WV) will chair the Environment & Public Works Committee, which has primary responsibility for highway and water infrastructure. Sheldon Whitehouse (D-RI) will likely take over as the top Democrat. In the House, the current chair of the Transportation & Infrastructure Committee, Sam Graves (R-MO), is term limited but seeking a waiver to stay on. If he is not given a waiver, the next-most-senior member is Rick Crawford (R-AR), who currently leads the Subcommittee on Highways & Transit. Rick Larsen (D-WA) will continue as the top Democrat on the committee.
- Energy & Environment — Permitting reform will remain a top priority for Congressional Republicans, and we can expect to see the Trump Administration take executive action to expand fracking to grow domestic oil/gas projects and support legislation to further speed up the federal permitting process. We expect the Trump Administration will pivot away from the Biden Administration’s climate policies and promote traditional energy resources like oil and gas. Congressional Republicans and the Trump Administration are also likely to rescind climate and green energy provisions like offshore wind in the Inflation Reduction Act. The biennial Water Resources Development Act (WRDA) is Congressionally driven and usually garners strong bipartisan support. That is not expected to change with the new Congress. In the Senate, Senator Mike Lee (R-UT) is in line to Chair the Senate Energy & Natural Resources Committee with Senator Martin Heinrich (D-NM) taking over as the ranking Democrat. In the House, Frank Pallone (D-NJ) will continue as the top Democrat on the Energy & Commerce Committee. There is a competitive race for the top Republican with the retirement of Cathy McMorris Rogers (R-WA).
We will continue to post updates in the coming days as the next Congress takes shape, both in terms of outstanding races and as the policy picture comes into greater focus as leadership and committee assignments are finalized.
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October 23, 2024
ACEC Research Institute Reports Engineering and Design Industry grew by more than 5% and added $656 billion to the U.S. GDP in 2023
The ACEC Research Institute – the leading source of original research for the business of engineering – released the results of two important studies on the current and future state of the engineering industry, and its role in the overall U.S. economy.
The reports, the 2024 Economic Assessment of the Engineering & Design Services Industry and the Engineering Business Sentiment Report for 2024 Q4, both point to continued optimism for the industry and its firms, though somewhat softened compared to previous quarters.
“This research shows the outsized impact the engineering industry has on the American economy,” said ACEC Research Institute Chair Mike Carragher. “As the engineering industry’s contributions grow year over year, the Institute’s research helps firm executives position their businesses for a successful future.”
2024 Economic Assessment of the Engineering & Design Services Industry
Conducted by Rockport Analytics and unveiled during ACEC’s Fall Conference in New Orleans, the 2024 Economic Assessment of the Engineering and Design Services Industry – now in its fifth annual release – focused on the key economic drivers of the engineering and design services industry.
As in its four previous iterations, it sought to describe, measure, and analyze the economic impact of the engineering industry, and to highlight its direct connection to the health of the U.S. economy.
All told, the industry added $656 billion to the U.S. GDP in 2023, supported well over five million jobs directly or indirectly, and contributed $92 billion to federal tax coffers, with an additional $44 billion in state and local taxes.
Overall, the Report found that the engineering and design services industry has continued to build on its year-over-year post-COVID gains, growing 5.5% in 2023 to $436 billion, with much of that growth driven by infrastructure projects. Non-residential and non-building construction, flush with government funding through the IIJA and Inflation Reduction Act, remained on an upward trajectory.
This year’s Report also examined for the first time the potential impact of emerging technologies on the engineering and design services industry. With AI identified as a key trend, the authors note that these technologies are rapidly gaining traction with firms. “Currently, around one-third of firms are either implementing or planning to incorporate AI into their workflows,” the authors write.
Engineering Business Sentiment Report for 2024 Q4
For the Q4 2024 Engineering Business Sentiment Report, ACEC member firm leaders from around the country and from firms of all sizes were asked to weigh in on the current state of the industry and its direction. Their responses pointed to yet another quarter of solid growth for engineering firms, along with widespread optimism that growth will continue. Respondents were especially bullish on the sectors involving Water and Wastewater along with Roads and Bridges.
Workforce challenges were once again a persistent theme throughout the responses, with more than half of firms (51%) reporting that they continue to turn down work due to labor shortages. Twenty-six percent of firms also indicate they are turning down good, profitable projects. That represents a 2% increase from Q1 2024.
Both reports can be found on the ACEC Research Institute website.
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The ACEC Research Institute is the independent research arm of the American Council of Engineering Companies (ACEC) — the business association of the nation’s engineering industry. The ACEC Research Institute’s mission is to deliver knowledge and business strategies that guide and elevate the engineering industry and to be the leading source of knowledge and thought leadership for creating a more sustainable, safe, secure, and technically advanced built environment.