AEC Industry Intelligence

National & Washington State Trends to Watch | June 2026

The engineering industry continues to navigate rapid technological change, growing infrastructure demand, workforce shortages, and evolving regulations. The following developments have emerged over the past several weeks as key issues that could impact project delivery, business operations, and future opportunities for engineering firms.

Thank you for reading, and as always, thank you for being part of the ACEC Washington community.

Technology & Digital Transformation

AI Is Moving From Discussion to Implementation

Artificial intelligence was one of the dominant topics at ENR FutureTech 2026, where industry leaders focused on practical applications including data-driven operations, drone inspections, robotics, reality capture, safety management, and project delivery. The conversation has shifted from whether firms should adopt AI to how they can integrate it effectively into daily workflows.

Why it matters: Firms that develop AI strategies now may gain advantages in productivity, project coordination, risk management, and competitiveness. Owners are increasingly expecting faster, more data-driven project delivery.

👉 Read more:

• ENR FutureTech: https://www.enr.com/future-tech

• ENR FutureTech 2026 Wrap-Up: https://finance.yahoo.com/sectors/technology/articles/enr-futuretech-2026-wraps-three-011600447.html

Infrastructure & Market Opportunities

Data Centers Continue Driving Industry Growth

Data center construction remains one of the strongest growth sectors in the AEC industry. Demand driven by artificial intelligence and cloud computing continues to generate opportunities in civil, structural, transportation, environmental, utility, and energy engineering. However, labor availability, power supply, and permitting constraints are emerging as key challenges.

Why it matters: The Pacific Northwest remains a strategic market for technology infrastructure. Firms involved in energy, utilities, transportation, environmental permitting, and site development should continue monitoring this sector closely.

👉Read more:

• ENR: https://www.enr.com/articles/62877-constructions-next-chapter-challenges-demand-and-opportunity

Advocacy & Regulatory Affairs

Federal Infrastructure Investment Remains a Priority

ACEC National continues advocating for long-term infrastructure investment through transportation, water, and energy programs. Discussions in Washington, D.C. regarding future transportation authorization and infrastructure funding will shape project pipelines for years to come.

Why it matters: Federal investment directly influences the volume of transportation, water, environmental, and public works projects available to engineering firms nationwide.

👉Read more:

• ACEC National: https://www.acec.org/

Workforce & Talent

The AI Boom Is Creating a New Skilled Labor Shortage

As technology companies accelerate construction of AI-driven data centers, demand for electricians, HVAC technicians, fiber installers, and other skilled trades continues to increase. Meta recently announced a $115 million workforce development initiative to help train workers needed to build and operate AI infrastructure.

Why it matters: Engineering firms are already competing for talent. The growing demand for infrastructure workers could place additional pressure on project schedules, recruiting efforts, labor costs, and delivery capacity. Firms should continue investing in workforce development, mentorship, and succession planning.

👉 Read more:

• Reuters: https://www.reuters.com/business/meta-funds-skilled-trades-jobs-program-ai-data-center-buildout-2026-06-08/

• Business Insider: https://www.businessinsider.com/meta-launches-construction-data-center-jobs-program-2026-6

Tax & Business Issues

Business Tax Policy Remains a Key Industry Watch Item

As Congress evaluates tax policy heading into future budget negotiations, business provisions affecting pass-through entities, R&D expenses, depreciation, and infrastructure investment incentives remain important topics for engineering firms.

Why it matters: Changes to federal tax policy can significantly impact firm profitability, investment decisions, hiring, ownership transition planning, and long-term growth strategies.

👉 Read more:

• ACEC Advocacy: https://www.acec.org/advocacy/

Energy

Energy Demand Is Rising Alongside AI Infrastructure

The growth of data centers is creating unprecedented electricity demand nationwide. Utilities, energy providers, and policymakers are evaluating how to expand generation, transmission, and grid capacity while balancing reliability and sustainability goals.

Why it matters: Increased energy demand will drive opportunities in transmission, substations, renewable energy, grid modernization, environmental permitting, and utility infrastructure projects.

👉 Read more:

• ENR Infrastructure Outlook: https://www.enr.com/articles/62877-constructions-next-chapter-challenges-demand-and-opportunity

Water & Resilience

Water Infrastructure Continues to Be a National Priority

Communities across the country continue investing in drinking water, wastewater, stormwater, and resilience projects funded through federal infrastructure programs. Aging infrastructure, population growth, and climate resilience planning remain major drivers.

Why it matters: Water infrastructure remains one of the most stable and long-term markets for engineering firms and is expected to continue generating opportunities for years to come.

Water Infrastructure Continues to Be a National Priority

👉 Read more:

• ACEC Infrastructure Priorities: https://www.acec.org/

WASHINGTON STATE UPDATE

Washington Delays Adoption of 2024 Building Codes

The Washington State Building Code Council has delayed adoption of the 2024 Washington State Building Codes, with implementation now scheduled for May 2027. The extended timeline allows additional stakeholder engagement and review of proposed amendments.

Why it matters: The delay affects project planning, permitting, compliance strategies, and future code implementation schedules for engineering firms, architects, developers, and local jurisdictions.

👉 Read more:

• Washington State Building Code Council: https://sbcc.wa.gov/

• Seattle Code Adoption Update: https://www.seattle.gov/sdci/codes/changes-to-code/seattle-code-adoption

Washington Continues Efforts to Streamline Permitting

Recent legislative updates continue efforts to improve and streamline permit review processes across Washington jurisdictions, with a focus on reducing delays and improving housing production.

Why it matters: Faster permitting can improve project delivery schedules, reduce costs, and increase certainty for owners, consultants, and contractors.

👉 Read more

• Washington Department of Commerce Legislative Update: https://www.commerce.wa.gov/planners-newsletter-legislative-update-2026/

• MRSC Legislative Summary: https://mrsc.org/stay-informed/mrsc-insight/may-2026/2026-planning-legislation

Looking Ahead

The themes emerging across the industry are clear: technology adoption, workforce development, infrastructure investment, energy demand, and regulatory modernization. Firms that stay informed and adaptable will be best positioned to capitalize on emerging opportunities while navigating the challenges ahead.

ACEC National News

Professional Development & Learnning

Invest in your future: Upcoming AI Training Opportunities from ACEC

Artificial intelligence is rapidly transforming how engineering firms operate, making continuous learning more important than ever. ACEC National is offering two upcoming virtual sessions designed to help firms move beyond basic AI use and begin applying these tools strategically within their organizations.

June 23 | Beyond Basic AI Chat: Prompt Engineering for Engineering Deliverables

Learn practical techniques for creating more effective AI prompts, improving output quality, identifying potential errors, and understanding the limitations and risks of AI-generated content. 1PDH

June 25 | Guidelines for Creating Custom AI Agents

Explore how firms are developing custom AI tools to automate repetitive tasks, improve access to internal knowledge, and support marketing, operations, and project delivery. Attendees will hear real-world lessons learned from firms already implementing these technologies. 1PDH

Looking Ahead: 2026 ACEC Annual Forums

Registration is now open for the 2026 ACEC Annual Forums, taking place September 27-29 in Cleveland. The Forums offer a unique opportunity for firm leaders to engage in peer-to-peer discussions, exchange best practices, tackle common business challenge

Areas discussed: Business Development & Marketing, Finance, Human Resources, Information Technology, Women's Leadership.

As technology, business practices, and client expectations continue to evolve, investing in professional development remains one of the best ways to position your firm for long-term success.

ACEC Research Institute

Engineering Firms Remain Strong Despite Economic Uncertainty

 The ACEC Research Institute's Q2 2026 Engineering Business Sentiment Survey found that engineering firms continue to operate from a position of strength, even as confidence in the broader economy softens. Firm finances and industry performance remain strong, with nearly half of firms reporting backlogs of one year or more and 64% expecting to increase hiring over the next 12 months.

While concerns about political uncertainty, inflation, rising costs, and economic conditions remain elevated, firms are becoming more selective about the projects they pursue. Workforce pressures also appear to be easing, with significantly fewer firms reporting they have turned down work due to staffing shortages compared to 2024.

Why This Matters

This survey suggests the engineering industry is entering a period of strategic growth rather than rapid expansion. Firms continue to have healthy backlogs and strong market opportunities, particularly in Data Centers, Energy, and Utilities, while focusing more closely on profitability, project selection, and cost management. For firm leaders, the message is clear: demand remains strong, but successful firms will be those that balance growth with disciplined business decisions.

👉Read the full report:

https://www.acec.org/news/engineering-firms-move-to-a-position-of-strength-acec-research-institute-reports/

Upcoming ACEC WA Events

We’re also here to support your professional growth.

As part of our commitment to continuous education at accessible prices, we offer one webinar every month and two major conferences each year.

Mark your calendar:

📍 Golf Tournament - Friday August 28 at Echo Falls

📍 Fall Conference – September 28–30, jointly with ACEC Oregon at Skamania Lodge

Sponsorships

We are grateful for the organizations that support ACEC Washington through sponsorship. Their commitment helps make our programs, events, and industry initiatives possible. We encourage you to learn more about and support the companies that help strengthen our engineering community.

2026 Sponsorships Available

Engineering Influence Podcast Latest Episodes

The Market Edge: Rethinking Water Resources

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Politics of the Moment with Politico's Jnathan Martin

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Joe Bates Discussed the Q2 Engineering Business Sentiment Survey

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The River Comes Back to Life | EEA Grand Conceptor Award Winner: McMillen Engineering

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The Reps Peter Defazio and Bill Shuster Discuss the Current State of Congress

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Have something to share?

Have a project, topic or idea to share? Contact Pamela Beachnau

Next up: Influence, focused on advocacy and legislative updates, drops June 24.