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Market analysis··2 min read

Engineering and Architectural Firms: Persistently Strained Economic Climate

The latest nationwide economic survey of engineering and architectural firms reveals a continuously strained economic situation, with political measures failing to show any discernible effect so far.

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Engineering and Architectural Firms: Persistently Strained Economic Climate. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The latest results from the nationwide economic survey of engineering and architectural firms highlight a consistently strained economic situation within the sector. Neither the simplification of planning and approval procedures nor new financing instruments, such as the Infrastructure Special Fund, have yet had any noticeable positive effects on the economic state of these firms.

Market researchers from IW Consult and Reiß & Hommerich conducted this survey on behalf of AHO, VBI, BIngK, and BAK to capture nationwide economic development. The volatility of order books has increased: in the second half of 2025, 37 percent of engineering firms reported a decline in orders, while 30 percent saw an increase. In the previous year, orders fell for 35 percent and rose for 27 percent of firms.

Forecasts for 2026 show a continued pessimistic outlook. 26 percent of engineering firms expect a decline in orders; for architectural firms, this figure is even higher at 35 percent. The average order backlog for architectural firms has significantly decreased from 11.5 to 10.0 months. For engineering firms, the backlog remains stable at 11.3 months, compared to 11.1 months in the previous year. This divergence is attributed to architectural firms' greater reliance on private clients, where project cancellations and service reductions are more frequently observed.

Economic Conditions and Future Prospects

At the beginning of 2026, 22 percent of architectural firms and 19 percent of engineering firms rated their economic situation as poor or rather poor. The assessment is particularly reserved among interior designers and engineering firms in the fields of structural planning and transport infrastructure. In contrast, positive deviations are observed among landscape architecture firms and engineering firms involved in the structural design of engineering works. Overall, 5 percent of respondents fear business closure in the coming months, while 14 percent consider their future uncertain. This uncertainty particularly affects smaller firms with fewer than ten employees.

The alarming situation, given the dramatic shortage of housing construction and the significant need for infrastructure refurbishment and the energy transition, is primarily due to economic and regulatory framework conditions. Regulatory requirements, disrupted project processes, and the general economic downturn are cited by both engineering and architectural firms as major impediments. Many architectural firms also name increased material costs as a reason for the weak economic situation.

Demands from the Chambers

Andrea Gebhard, President of the Federal Chamber of Architects, interprets the results as a clear warning signal. She emphasises the significant economic pressure on many firms, the declining order backlog, and the growing economic uncertainty. Given the tasks in housing construction, climate adaptation, and infrastructure modernisation, this is unacceptable. A clear political signal is needed to make planning and construction simpler, faster, and more reliable. Planning firms require reliable and adequate framework conditions, as the impending tasks cannot be managed without efficient architectural and engineering firms.

The online economic survey was conducted in May and June 2026 by AHO, BAK, VBI, and BIngK, together with their regional chambers, supported by the German Economic Institute (IW Consult) and Reiß & Hommerich. A total of 4,859 architectural and engineering firms participated, a significant increase compared to 2,452 companies in the previous year. The results provide important insights into the need for action regarding more reliable project processes, adequate fees, and a reduction in regulatory burdens. The efficiency of planning firms is considered a central prerequisite for the implementation of public and private investments in German infrastructure.

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