Deltek's 2026 Architecture & Engineering Industry Study reveals critical challenges facing the sector, with labor shortages and AI adoption at the forefront. As workforce constraints continue to mount, architecture and engineering (A&E) firms are grappling with operational pressures that could redefine project delivery and productivity.
What Happened
According to Deltek's latest report, the A&E industry is experiencing significant labor shortages, heightened turnover, and increased AI adoption. The study indicates that staff growth slowed to a mere 1.2% in 2025, while turnover reached a seven-year high of 13.8%. Firms are also managing an average project backlog of 6.3 months, with larger firms dealing with backlogs averaging 8.6 months. Workforce capacity and planning have emerged as top challenges for human resources departments.
AI adoption has surged, with 70% of firms now incorporating AI into their operations, up from 53% the previous year. Despite this rapid adoption, only 38% of firms report measurable business benefits from their AI investments. Cybersecurity remains a pressing concern, as 93% of firms experienced at least one cyberattack attempt in the past three years.
What This Means for Your Business
For US operators in the AECM sector, these findings underscore the urgent need to address both workforce and technological challenges. The labor shortages and high turnover rates suggest that firms must invest in recruitment and retention strategies to maintain competitiveness. Additionally, the mixed results from AI investments highlight the importance of aligning technology with specific business goals to achieve tangible benefits.
The cybersecurity threat underscores the necessity for robust defense mechanisms. Firms must ensure compliance with standards such as the Cybersecurity Maturity Model Certification (CMMC) and NIST guidelines to safeguard their operations against cyber threats.
What US Operators Should Watch
Decision-makers should closely monitor developments in AI technology and workforce management practices to stay ahead of these challenges. Keeping track of federal deadlines and compliance requirements, particularly related to cybersecurity, will be crucial. Additionally, firms should look out for federal funding opportunities that support technological innovation and workforce development.
Source: https://www.forconstructionpros.com/business/labor-workforce-development/article/22967001/deltek-deltek-report-finds-labor-and-ai-challenges-reshaping-ae-industry. Read the original story ->
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