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Business | Operations

FMI Releases 2025 Engineering and Construction Industry Overview and First Quarter Outlook

by FMI on

FMI Corporation, a leading provider of consulting and investment banking services to the built environment, released the 2025 North American Engineering and Construction Industry Overview today. The report provides a comprehensive forecast for a broad range of construction and engineering segments in the U.S. and Canada for 2025.

FMI expects engineering and construction spending to end 2025 up 2% from 2024. The report also highlights key trends shaping the built environment, such as the surge in construction driven by data centers and manufacturing facilities, strategies to address ongoing labor challenges and the adoption of digital tools to enhance operational efficiency.

Engineering and construction spending is projected to rise 2% in 2025.Post this

“As we look to the future, it’s clear that understanding long-term trends is essential to shaping a strategy for success,” said Chris Daum, CEO and president of FMI Corp. “Whether it’s improving operations, developing leaders, crafting a forward-thinking strategy or executing transformative transactions, staying ahead of the drivers reshaping the built environment is the key to thriving in a dynamic market.”

Key highlights of the report include:

  • Total engineering and construction spending for the U.S. is forecast to end 2024 up 6%, in line with the 6% growth in 2023.
  • In 2024, top-performing segments included public safety, manufacturing and water supply, each with growth rates more than 15% above 2023 levels.
  • Single-family residential construction, supported by the recent rate-cutting cycle and anticipated housing affordability policies, will drive demand for other segments, such as institutional and nonbuilding structures.
  • Data centers remain a high-growth area, with private investment up 60% through the third quarter of 2024, compared to 2023.

To learn more, download the full report here.  

About FMI
FMI is a leading provider of consulting and investment banking services to the built environment. We provide services in the areas of strategy, leadership and organizational development, operational performance, mergers and acquisitions, financial advisory and private equity financing.