3 ways the engineering and construction landscape will change this year

2020 started out strong for the engineering and construction industries until the COVID-19 pandemic hit. Many employees have felt the impact due to layoffs, cut hours, and reduced pay with many large projects being paused while the industry weathers the storm. Not only have we had to change the way we work, but we’ve also had to fight to keep our industry alive and well. Here’s what to expect in the year ahead:

Economic ramp up in mid-2021

The economy has significantly slowed in the last half of 2021, according to Richard Branch, Chief economist for Dodge Data and Analytics. Expect to see slow growth in the first quarter of 2021, but an economic ramp up in mid-2021 due to an additional stimulus package and vaccine rollout. Although this forecast is not set in stone, industry professionals are hopeful.

An uptick in public and commercial spending

The residential and non-residential segments have separate challenges in 2021, according to Deloitte’s 2021 engineering and construction industry outlook. Smaller engineering and construction firms will have it worse than larger, more diversified firms. Ultimately, an uptick in public and commercial spending will improve the outlook overall.

Rebound in dollar value of construction starts

The dollar value of construction starts dipped by 14% in 2020. It’s predicted there will be a rebound of 4% in 2021, growing starts to near $771 billion.

Most indicators on how the engineering and construction landscape will perform in 2021 rely heavily on additional Coronavirus Aid, Relief, and Economic Security Act unemployment assistance. If you have not already, we encourage you to urge Congress to pass the COVID-19 Relief and Consolidated Appropriations Act. Find the details of the importance of passage in our latest blog.

We look forward to 2021 and the challenges ahead. Stay tuned for the latest industry updates and don’t forget to become an ACEC Utah member if you aren’t already.