Engineering CEOs are feeling increasing confidence in market conditions and their own firms’ future profitability, according to the Engineering Business Index (EBI) compiled by the American Council of Engineering Companies.
The EBI charts the health of the engineering industry through member responses to a series of questions about company performance and market trends, consolidated into a single number. Any number over 50 indicates expansion.
After five months of declining scores, the EBI rose from 62.4 in Q3 to 63.1 in Q4 2015. Expectations of profitability in three years, backlog expectations and confidence in the business climate all rose by 4 points or more.
ACEC said that a major factor in the higher scores was the passage of the long-awaited transportation bill. But the private sector, the strongest source of growth in recent years, shows some signs of slowing.
But the overall picture looks good. “With the continued overall economic growth, we’re seeing a steady increase in opportunities in our markets,” said one respondent.
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