Engineering economics quantifies the benefits and costs associating with engineering projects to determine if they save enough money to warrant their capital investments. Engineering economics requires the application of engineering design and analysis principles to provide goods and services that satisfy the consumer at an affordable cost. Engineering economics is also relevant to the design engineer who considers material selection.

Engineers are planners and builders. They are also problem solvers, managers and decision makers. In the beginning of the 20^th century, engineers were mainly concerned with the design, construction, operation of machines structures and processes.