FMI's 2025 Engineering and Construction Industry Outlook Reveals Growth Trends

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

FMI Corporation, a key player in consulting and investment banking services for the built environment, has released its comprehensive report on the 2025 Engineering and Construction Industry for North America. The report not only outlines a broad spectrum of spending forecasts for sectors across the U.S. and Canada but also dives into significant trends that are shaping the future of the construction landscape.

One of the standout revelations from FMI's report is the expectation that engineering and construction spending will rise by 2% in 2025 compared to 2024. This is in alignment with a detailed examination of metrics from the previous years, particularly with a 6% increase observed in overall industry spending last year. The analysis indicates that certain segments within the industry are thriving, significantly impacting the broader economy.

Key Highlights from the 2025 Outlook

The report outlines various trends impacting the built environment, which include substantial growth areas. For instance, segments related to public safety, manufacturing, and water supply have reported growth rates exceeding 15% compared to 2023. This growth is indicative of a broader recovery and revitalization across many construction segments, driven partly by heightened demand across multiple sectors.

Another important aspect highlighted is the anticipated boost in single-family residential construction. This segment is expected to flourish as recent monetary policies aim to improve housing affordability. This, in turn, is anticipated to create ripple effects, benefiting institutional and nonbuilding structures. Thus, the dynamics of the housing market are intricately linked to various construction sectors.

Data centers are recognized as a critical growth sector, with private investments jumping 60% by the third quarter of 2024 compared to the previous year. This is part of a broader trend where technology infrastructure investments are becoming pivotal for economic development, reflecting demands from sectors in need of robust digital frameworks.

Chris Daum, the CEO and President of FMI Corporation, emphasized the necessity for those in the construction arena to grasp these long-term trends. He articulated that understanding these factors is crucial in crafting effective strategies that can lead to operational optimization, leadership development, and transformative business transactions. The statement underscores an urgent call for stakeholders in the industry to not just react but proactively shape their approaches in an ever-evolving market.

The report also details FMI's ongoing research that anticipates how these trends will unfold into the future. The interplay between increased spending and a heightened demand for skilled labor remains a consistent challenge outlined within the findings. Addressing labor challenges through innovative solutions and the adoption of digital tools is a core focus for enhancing operational efficiency.

For a deeper dive into the trends and forecasts defined in FMI's 2025 Engineering and Construction Industry Overview, the full report is available for download.

FMI continues to lead the charge in providing valuable insights that help stakeholders navigate the complexities of the built environment, offering expertise in strategy, leadership, operational performance, M&A activities, and financial advisory services.

With the construction and engineering sectors vital to the North American economic fabric, the findings serve as both guidance and warning for the industry players aiming for growth in the years to come.

To learn more, interested parties can download the complete report through FMI’s website.