Deltek released its 2026 Architecture & Engineering Industry Study, highlighting ongoing labor shortages, operational challenges and growing AI adoption across the A&E sector.
The report found firms continue to face pressure from workforce constraints, rising costs and fragmented technology systems that are affecting project delivery and productivity. Staff growth slowed to 1.2% in 2025, while turnover reached a seven-year high of 13.8%.
According to the study, firms reported an average backlog of 6.3 months, with larger firms averaging 8.6 months. Workforce capacity and planning ranked among the top human resources challenges.
The report also found AI adoption increased significantly year over year, rising from 53% to 70% among surveyed firms. However, only 38% reported measurable business benefits from AI investments.
Cybersecurity also remains a major concern, with 93% of firms reporting at least one cyberattack attempt within the past three years.
