New Study: Total Economic Contribution of Engineering & Architectural Services Nearly $600 Billion

One in Thirty-Three Americans Owes Their Job to Engineering and Architectural Services Industry

Washington, DC (February 3, 2021)— The Engineering and Architectural Industry is a significant driver of the U.S. economy supporting $600 Billion in GDP, according to a new study conducted by the ACEC Research Institute—the leading source of knowledge and thought leadership in the engineering space.  The engineering and architectural services sector’s 2019 revenue totaled $386 billion, adding in the indirect and induced contributions brings the total economic contribution to nearly $600 billion. 

Key Findings:

• Engineering and architectural industry-supported wages totaled $311 billion.  That includes $142 in direct wages paid within the sector and $169 billion worth of wages in sectors with which the industry does business.
• The engineering and architectural industry pays its workers a total of $88,000 in annual average wages. In addition, the engineering and architectural industry supports $169 billion in wages being paid to American workers in other industries
• Total taxes initiated by the engineering and architectural industry is estimated at $122 billion–$83 billion in federal taxes and $39 billion in state and local taxes

Providing Perspective – Understanding the True Contribution of the Engineering Industry:

• One in every thirty-three Americans owes his/her job to the engineering and architectural services industry
• For each new job created in the engineering and architectural industry, two more are generated in sectors that support or benefit from their operations
• Engineering and architectural state and local tax contributions could cover the costs of 262,000 police officers
• Take away the engineering and architectural industry and 128.6 million American households would have to pay $948 more in annual taxes to maintain current tax revenues

“The engineering and architectural industries reach goes far and wide showing what a major contributor we are to the U.S. economy and across other industries,” said ACEC Research Institute Chair John Carrato of Alfred Benesch and Company. “By producing this report and giving these numbers perspective, the ACEC Research Institute has created a valuable tool for showing the importance and economic influence of this industry.” 

“The findings from this new study show the stunning impact our industry has beyond just the engineering sector,” said Linda Bauer Darr, ACEC president and CEO. “The economic footprint of the engineering services sector reaches across virtually every other industry, playing a critical role for the entire U.S. economy.”

MORE INFORMATION

The full report, 2020 Engineering Industry Economic Contribution, is available for download by clicking here.

METHODOLOGY
It is important to note that the definition of the Engineering and Architectural Services industry used in this study has been primarily developed based upon the ways in which public and private data sources collect and publish information from all businesses across the U.S. – the North American Industry Classification System, or NAICS. The NAICS code “5413, Architectural, Engineering, and Related Services” is part of the broad category, “54 -Professional, Scientific, & Technical Services” and includes both private and public sector organizations from a number of sub-sectors including: Architectural Services, Landscape Architectural Services, Engineering Services, Drafting Services, Building Inspection Services, Geophysical Surveying and Mapping Services, Surveying and Mapping (except Geophysical) Services and Testing Laboratories. This study focuses on the all-inclusive NAICS 5413 categories to define engineering and architectural services activity.

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The ACEC Research Institute is the research arm of the American Council of Engineering Companies – 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.