AEC firms in Central Texas are entering 2026 amid rapid regional growth, infrastructure investment and development demand.

On paper, it should be a high-growth time for small and mid-size firms, but many are stretched so thin that they miss opportunities.

This is the capacity crisis. It is affecting architecture firms as they try to keep pace with fast-moving developers.

It is affecting engineering teams that are juggling heavy workloads with limited staff.

It is affecting construction firms as they navigate material volatility and talent shortages.

The capacity crisis is not caused by one problem.

It is the result of economic pressure, AI disruption, talent scarcity, pursuit overload and shifting expectations from clients and partnering agencies.

Labor shortages continue to strain AEC delivery.

AEC has faced workforce shortages for more than a decade. Skilled talent is challenging to recruit and even harder to retain, especially as large national firms expand into Central Texas with higher salaries and benefits.

This puts pressure on project managers and principals who end up having to cover multiple roles. Project delivery becomes reactive instead of strategic. Marketing and business development take a back seat until workloads lighten, which rarely happens.

Pursuits and proposals are more demanding.

Government agencies and private developers are expecting more sophistication from AEC proposals. They want clear differentiators, stronger branding, better visuals, and thoughtful narratives. The days of “submit the basics and hope” are over.

Firms are losing valuable work simply because their pursuit materials do not communicate expertise, value, or capacity. Marketing teams are either overwhelmed or nonexistent. Principals are writing proposals on weekends. Teams are exhausted.

AI increased expectations without increasing capacity.

AI is transforming AEC workflows. From conceptual design to quantity takeoffs to scheduling, firms are adopting tools that improve efficiency. On the client side, this creates the expectation that firms can respond, design, and communicate faster.

The problem is that AI does not fully address capacity challenges. While helpful with efficiency, it does not manage pursuit strategy, ensure brand consistency or establish strong market positioning. AI supports firms with existing robust systems but cannot compensate for gaps in planning, staffing or core marketing functions.

Owners and principals are carrying too much.

AEC leaders face constant proposal deadlines, client management, hiring, operations, and financial pressures. Marketing becomes a low priority, as “things never slow down.”

This creates a cycle where firms depend on handshakes and referrals, then panic when those pipelines fluctuate. Growth becomes unpredictable because communication and promotion are inconsistent.

AEC firms rarely lack opportunities, but cannot fully and consistently pursue them.

Marketing is often the first to suffer in a capacity crisis.

With limited internal support, teams struggle to:

Maintain an updated website
Publish project updates
Tell their firm’s story
Create case studies
Strengthen community reputation
Produce strong proposal materials

Without consistent marketing, firms blend into one another.

Clients do not see unique value.

Competitors gain visibility.

What Can AEC Leaders Do?

To move forward, firms need to strengthen their operational and marketing capacity.

Start by:

Defining clear differentiators
Developing pursuit standards and templates
Delegating marketing to a dedicated team
Using AI as a support tool, not a replacement
Documenting processes to reduce leader burden
Investing in brand and communication clarity

Central Texas will continue to grow. The question is which firms will be positioned to win the work and which will be too overwhelmed to compete. Your capacity crisis is solvable. It starts with a commitment to consistent marketing and strategy that frees your team to focus on making the final product the best it can be.

The Capacity Crisis in AEC: Why Architecture, Engineering and Construction Firms Are Struggling to Keep Up