– A new US administration: What now for Europe’s competitiveness
With the new US administration’s agenda being rolled out, Sue Arundale, Director General of the European Federation of Engineering Consultancy Associations (EFCA), examines what impact this might have on Europe’s agenda over the next four years. Following the changes in the US administration in January, EFCA has been following the plethora of early policy announcements in an attempt to make an initial analysis of the consequences for our sector in Europe. The withdrawal from the Paris Agreement, the planned investment in frontier technologies and the threat of tariffs are just some of the developments that look set to pose challenges for consulting engineering firms headquartered in the EU. We look at the headlines from their perspective and consider some of the big questions that need to be answered so that these firms are better prepared to navigate the new business environment.
What now for the UN climate targets?
How do we continue our efforts to reach our climate goals in the face of the clear prioritisation of fossil fuels in the US? Emissions do not stop at borders, and the climate emergency needs a global response. The European Union has taken a strong lead, introducing regulation, certification, linking funding to clear green criteria and bringing an eventual end to the use of the worst offending sources of power as well as non-compliant products and industrial processes. Industry and other businesses have duly followed, overhauling their unsustainable practices and turning the threat of inevitable and ongoing climate catastrophe into business opportunities.
So, how will our leaders ensure that these efforts have not been in vain and keep Europe on track while also guaranteeing the economic viability of maintaining the current sustainability requirements? This will surely be one of the most urgent talking points in the institutions.
Another related question is how to keep our biggest industries and the respective ecosystems from bailing out and simply relocating to the US. Although a mass exodus seems unlikely at this stage, the EU must address the lagging competitiveness of the bloc. This was already biting and threatening future prosperity, and EFCA already called for measures to improve Europe’s autonomy in its manifesto for last year’s EU elections 1.
What now for Europe’s Big-Tech?
Speaking of autonomy, this is frequently on the agenda of EFCA’s Digitalisation and BIM, and Future Trends committees. The storage of data in clouds, the jurisdiction under which the biggest technology firms operate, the lack of adequate infrastructure to facilitate the rapid expansion of frontier technologies as well as a shortage of qualified engineers, especially those with expertise in the most innovative methods… the list of challenges is already long.
Add to that the massive investment in AI promised in the US, along with a favourable environment for innovation and a different attitude to risk, and we see that the digital transition in Europe just became more complicated. This at a time when we have recently seen a spurt of measures intended to offer a regulatory framework that is fit for the digital age. How will all of this be tackled?
EFCA will continue to push for a secure method of sharing data, fair and transparent rules that prevent the loss of control of the design process and the interoperability of systems and software, as well as open standards. Nevertheless, it rather looks as though these things alone will not be enough to match the ambitions of the US, which was, after all, already the world leader in this field.
Is there any good news?
Well, before the gloom sets in, we have to see how the ambitious American growth agenda will be implemented.
Furthermore, it actually seems that this wake-up call is timely, given that the European commissioners are now in post with an ambitious agenda of their own. For too long, we have been dragging our feet, seemingly unable to meet our own aspirations and even the corresponding targets aimed at both reviving the economy while at the same time protecting our citizens and our environment. Perhaps the extent of the US administration’s intentions, as well as the undercurrent of national optimism there will provoke urgent and essential reflection about how to react. The EU is very different to the US. As a bloc, with all the democratic processes essential to finding compromises for 27 countries (as opposed to 50 states), it is not operating in like-for-like circumstances. However, with some intelligent and pragmatic vision and leadership, the EU-27 could take stock of where we are and approach this time as an opportunity for change, the aim of which will be to ensure we can continue to compete on the world stage.
The same goes for consulting engineering firms. Although too early to be specific, and as we, in any case, are still waiting for the European Commission Work Programme 2025, EFCA will continue to serve consulting engineering firms, offering support and representation in the policy-making process. The federation has good relations with both the International Federation of Consulting Engineers (FIDIC) and its US member association, the American Council of Engineering Companies (ACEC), and is active via these and the other FIDIC members in measures and joint actions that promote the sector at a global level.
In conclusion
With that in mind, EFCA is confident that our sector will not only survive, but will adapt, continue to innovate and find new opportunities from this unpredictable period.
