Welcome to the first edition of MEP Pulse, a newsletter highlighting the latest breakthroughs, insights, and developments in the fast-moving world of MEP.
Each month, we’ll bring you industry trends, workforce insights, major M&A activity, and the innovations shaping the future of mechanical, electrical, and plumbing engineering.
The 2025 MEP Giants Report: What’s Shaping the Industry
The latest MEP Giants Report reveals how mechanical, electrical, plumbing, and fire protection engineering firms are navigating a shifting landscape. Here’s what stood out:
Revenue Growth (But Not Where You’d Expect)
MEP design revenue edged up to $15.02 billion, but overall gross revenue dropped 2.26% to $73.79 billion. The top 10 firms, led by Jacobs, Burns & McDonnell, and WSP, accounted for $9.23 billion of total MEP design revenue.
Staffing Challenges Intensify
Despite revenue gains, the number of MEP/FP engineers employed fell by 25.65%. This reflected the broader staffing challenges, including the quality of young engineers entering the field and rising construction material costs squeezing budgets.
Going Global
International opportunities are expanding: 35% of MEP services are now delivered in Asia, with 31% in the EU. Meanwhile, female representation among engineering staff held steady at 18%.
Sustainability Takes Center Stage
The number of LEED projects increased by 29.7%, signaling that green building isn’t slowing down. Firms are leaning into digital tools, such as Eaton’s BIM generation for Revit and digital energy twins, to meet tighter timelines and design smarter, more resilient infrastructure to remain competitive in a rapidly evolving market.
The Bottom Line
As economic volatility persists, MEP firms are turning to acquisitions and digital innovation to stay competitive. The message is clear: adapt or get left behind.
The 2025 MEP Giants report reveals a significant talent crisis gripping the industry.
The Numbers:
- Total employees dropped to 186,660 (down from 197,041 in 2024)
- Engineering staff plummeted 25.65%, from 30,803 to 22,902 in just one year
- Female representation held steady at 18% among engineers, but fell slightly to 39% (from 41%) among non-engineering staff
Hardest-Hit Roles
The decline wasn’t evenly distributed. Some specialisms saw dramatic drops in average headcount per firm:
- Electrical engineers: 153 > 90 (-41%)
- Environmental engineers: 44 > 21 (-52%)
- Mechanical engineers: 125 > 111 (-11%)
- Plumbing engineers: 18 > 17 (-6%)
- Fire protection engineers: 12 > 11 (-8%)
What This Means
The industry is struggling to attract and retain talent, particularly young engineers. With project demand growing but the workforce shrinking, firms face mounting pressure to innovate recruitment strategies and invest in long-term talent pipelines.
A huge congratulations to the top 10 firms on the MEP Giants 2025 list, who together generated over $9.2 billion in MEP design revenue. Leading the charge is Jacobs, holding the number one spot for over a decade, followed by other industry powerhouses who continue to set the standard for excellence in mechanical, electrical, and plumbing design. As we move through 2026, this momentum positions them strongly to tackle workforce challenges and capitalize on growing sustainability demands.
- Jacobs $2.27 billion
- Burns & McDonnell $1.80 billion
- WSP $1.5 billion
- Mott MacDonald $615 million
- Salas O’Brien $543 million
- HDR $518 million
- Tetra Tech $507 million
- Stantec $504 million
- EXP $443 million
- Jensen Hughes $349 million
These firms are not only driving innovation and sustainability across the built environment, but they’re also shaping the future of engineering on a global scale. Their leadership, resilience, and commitment to quality deserve recognition across the industry.
The latest report on the top 100 MEP firms reveals how firms are balancing their project portfolios to evolving client demands.
Where the Work Is
Design revenue is split almost evenly between new construction (42%) and retrofit/renovation projects (42%), signaling that MEP firms are equally focused on innovation in new builds and modernizing existing infrastructure. Supporting services round out the mix:
- Commissioning/retro-commissioning: 5%
- Maintenance, repair, and operations: 9%
- Other services: 3%
Who’s Hiring MEP Firms
Client profiles show strong demand across multiple sectors:
- Private owners: 95%
- Architects: 91%
- Design/build projects: 91%
- Government/military: 90%
- Contractors: 87%
Building Types Driving Demand
Healthcare facilities continue to dominate MEP project portfolios, maintaining the top spot for the ninth consecutive year. Other key sectors include:
- Transportation
- Data Centers
- Industrial/manufacturing
- Government/military
- Colleges/universities (which edged out office buildings this year)
Looking Ahead
As we move through 2026, these trends highlight a dual focus that’s likely to intensify: innovation in new construction paired with the critical modernization of aging infrastructure, both driven by economic pressures and mounting sustainability mandates.
Morgan Stanley Backs Olsson in Landmark Deal
In a significant move signaling growing institutional confidence in the MEP sector, Morgan Stanley Capital Partners made a majority investment in Olsson, Inc. in January 2026, marking the first time the employee-owned engineering and design firm has taken on an institutional investor.
About Olsson: Headquartered in Lincoln, Nebraska, Olsson is a leading full-service engineering firm with deep expertise across infrastructure, water resources, transportation, and building systems. The firm has built a strong reputation for delivering complex projects across the Midwest and beyond.
Why This Matters: Private equity investment at this scale reflects a broader trend: institutional investors see substantial growth potential in the MEP and infrastructure engineering space. With workforce challenges and aging infrastructure driving demand, well-positioned firms like Olsson are attracting serious capital to scale operations, expand geographically, and invest in technology.
What It Signals for the Industry: Morgan Stanley’s backing provides Olsson with resources to accelerate growth through strategic acquisitions, talent recruitment, and enhanced service offerings. This positions the firm to compete aggressively as consolidation continues to reshape the MEP landscape. As we move through 2026, expect more PE-backed deals as firms seek capital to navigate talent shortages, invest in digital tools, and capture market share in high-growth regions.
