Engineering the Future: Key Engineering Workforce Shifts Shaping 2026

Skilled engineering professionals working on projects that require technical depth in AI and data and automation.

Explore four critical engineering workforce trends for 2026. See how Actalent can help you bridge talent gaps and position your company for success.

Preparing for the 2026 Engineering Talent Landscape

Going into 2026, competition is tight for companies looking to hire engineers, and the market shows no signs of letting up. By 2031, the demand for engineering skills is expected to grow by about 13%, yet a third of new engineering roles go unfilled because of retirements, increasing demand and a skills gap.

Finding the engineering talent you need now is crucial to staying ahead in a rapidly changing landscape. Here are the four key engineering workforce trends you need to understand in 2026 — and how Actalent can help you respond to position your company for success.

Trend #1: AI-driven Engineering

Sixty-three percent of engineering firms are building or already have an AI strategy in place. Companies are rushing to deploy AI-enabled workflows, digital twins, and predictive modeling to increase efficiency and innovation. This requires engineers who not only have experience in Python, MATLAB and simulation software, but also exhibit the leadership skills needed to guide companies through digital transformation efforts with agility.

Next Steps

Look to hire engineers fluent in both core disciplines and digital tools to drive innovation. Actalent can help deliver engineers who blend technical depth with AI, data and automation skills to assist in executing your AI and digital transformation initiatives.

Trend #2: Infrastructure Boom

The 2021 Infrastructure Investment and Jobs Act (IIJA) and the CHIPS and Science Act of 2022 allocated more than $1 trillion and $52 billion, respectively, to infrastructure projects around the country. This promises large investments in projects ranging from transportation to bridge modernization to pollution cleanup, as well as an aggressive expansion of the U.S. semiconductor industry.

The massive demand for AI infrastructure and cloud computing is also fueling the rapid construction of data centers. This goes beyond just the construction of the centers themselves. With electricity demands from data centers expected to increase 15 to 17% annually by 2030, grid modernization is of utmost importance.

Next Steps

Build cross-functional teams that are ready to scale across physical and digital infrastructures. If you haven’t already, begin investing in hard-to-find talent, including engineers with highly sought-after semiconductor experience. Actalent can pair you with designers, construction managers, and civil and systems engineers with experience leading complex infrastructure and data center builds. We can also help stakeholders in the semiconductor industry bridge critical engineering workforce and capabilities gaps and seize CHIPS Act funding opportunities.

Trend #3: Clean Energy Transition

Though 2025 saw new restrictions and a rollback in clean energy tax credits, renewables still accounted for 93% of the additions to U.S. capacity growth. New advancements will continue to grow the market for years to come, with the production of small modular reactors (SMRs) and modular battery storage systems expected to have a big impact on the clean energy sector. The market for modular storage is projected to triple by 2033, while the SMR sector is expected to grow by thirtyfold in the next decade.

The beginning of 2026 is likely to be a particularly busy time for sustainable engineering initiatives. As companies rush to capture remaining clean energy tax credits, some experts believe the first half of the year will see an acceleration of near-term deployment for clean energy projects.

Next Steps

Ensure you have sustainability-driven engineering talent who can lead the clean energy shift with agility. Actalent provides access to engineers advancing solar, wind, grid modernization and EV infrastructure across the country.

Trend #4: Domestic Manufacturing

The threat of tariffs and long-running supply chain breakdowns have made outsourcing manufacturing increasingly expensive and unreliable. In response, the U.S. has moved to reshore many manufacturing capabilities, including semiconductor fabs, EVs and advanced manufacturing hubs.

To meet these new demands, companies will need to invest in talent with experience in logistics planning, quality engineering, materials handling systems engineering, construction management and more.

Next Steps

In addition to employing engineers with traditional manufacturing experience, source engineers who can modernize production quickly through digital and automated systems. Actalent supports advanced manufacturing with engineers skilled in automation, robotics and systems integration to enable reshoring and facility expansion.

Evolve Your Engineering Talent Strategy

The old model of hiring can’t keep up with the current rate of technological change. Traditional job titles are no longer a reliable shorthand for understanding the scope of a candidate’s expertise. Instead, hiring managers should focus on a candidate’s skills and cross-disciplinary capabilities.

Look for candidates with hard skills such as proficiency in design and modeling tools (MATLAB, etc.) along with a background in data analytics, coding and automation systems. But don’t overlook a candidate’s soft skills — adaptability and communication will be crucial for success in 2026.

While sourcing new talent, don’t neglect your current employees. Implementing upskilling initiatives for your existing workforces will be key to keeping pace with the changing demands of the industry. And, with fierce competition for engineering candidates, upskilling internally lessens your reliance on a tight hiring market.

But full-time hires aren’t your only options. Partner with Actalent to find contract engineering talent that can help fill skill gaps within your workforce and allow you to ramp up capabilities.

Lead the Evolution of Engineering with Actalent

Actalent partners with engineering firms across industries to meet complex workforce and innovation challenges. Our deep expertise in specialized engineering roles can help connect you with skilled professionals who combine technical precision and in-demand specialized experience.

We support a wide range of industries through engineering solutions, including:

Contact us to begin finding engineering talent for 2026 and beyond.

Frequently Asked Questions About
Engineering Workforce Trends in 2026

The Infrastructure Investment and Jobs Act and the CHIPS and Science Act allocated more than $1 trillion and $52 billion, respectively, to infrastructure projects around the country. Companies can work with partners like Actalent to bridge critical engineering workforce and capabilities gaps and seize these funding opportunities.
The engineering talent shortage will continue to be a challenge in 2026. By 2031, the demand for engineering skills is expected to grow by about 13%. However, thanks to retirements, increased demand and a persistent skills gap, a third of new engineering roles go unfilled.

The most in-demand competencies for engineers in 2026 include:

  • AI, automation and data analytics fluency
  • Sustainability and renewable energy design
  • Systems integration and digital manufacturing
  • Cross-disciplinary collaboration and problem-solving

In 2026, the most in-demand engineering roles will be in:

  • AI engineering
  • Clean energy engineering
  • Cybersecurity engineering
  • Manufacturing and industrial engineering
  • Engineering project management
  • Semiconductor engineering

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