Engineering & Construction Market Update: Q3 - 2019

U.S Engineering & Construction Highlights

• Upgrading America’s infrastructure to adequately meet anticipated future demands will continue to serve as an industry tailwind over the long-term
• Key forward looking E&C sector indicators continue to remain positive, supporting the notion the current multi-year public spending cycle is anticipated to continue into the foreseeable future
• YTD August 2019 Non-residential construction spending has increased 4.4%
• In Q2-19, Construction backlog has increased 5.8% on a YoY basis compared to Q2-18
• YTD August 2019 construction spending in the water supply sector is up 16.4%

Insight

• Non-residential construction spending has continued to grow through the first eight months of 2019, though spending is down approximately 3% from a peak witnessed in April 2019
• Leading indicators continue to remain strong. YoY growth in construction backlog is up 5.8% in Q2-19 compared to Q2-18
• While spending in the power sector is down slightly YTD 2019, positive spending is expected over the long-term due to the ongoing need for utilities to improve reliability, reduce congestion, and connect to new sources of renewable energy generation