Total U.S. construction spending put in place is expected to be flat, 0% growth compared to 2018
NSCA’s Electronic Systems Outlook report has been updated for Winter 2019, and includes information based upon actual data from January through November 2019, as well as forecasted information for 2020.
NSCA partners with FMI to provide this report, which offers the newest, most relevant indicators of business opportunities for integrators. By tracking new construction starts and renovations across multiple markets – including healthcare, lodging, retail, education, houses of worship, and more – NSCA pinpoints which verticals should do well in 2019 and beyond. Total U.S. construction spending put in place is expected to be flat, 0% growth compared to 2018.
Looking ahead to 2020, FMI forecasts a 1% increase in spending over 2019.
Despite the flat forecast, three markets are predicted to experience growth rates of 5% or more – lodging, corporate offices, and government buildings. These are offset by three markets that are expected to have dips of up to 5% — residential, retail, and houses of worship.
The Electronic Systems Outlook Winter 2019 edition provides an in-depth and updated view of construction data by market for electronic systems/technology, including AV, data/IT, building automation/control, life safety/fire/security, and digital signage/lighting.
“Construction data is a valuable indicator for the integration market. We focus on this report to provide information that will help member companies recognize where to focus their efforts,” says NSCA Executive Director Chuck Wilson. “It’s promising that corporate offices are expected to experience growth of at least 5%, since a majority of NSCA member companies conduct a good deal of their business in the corporate vertical.”
Healthcare, education, and manufacturing segments are likely to grow (roughly with the rate of inflation) and be considered stable.
At the 22th annual Business & Leadership Conference next month, in what has become an annual tradition, Chris Kuehl – chief economist for several organizations, and managing partner for a firm that provides forecasts and strategic guidance – will use the Electronic Systems Outlook Winter 2019 report to analyze long-term trends, current conditions, and the economic outlook for 2020 and beyond.
In addition, NSCA will host a free, webinar on February 18, 2020, to help integrators learn more about this data and how to apply it to their own businesses. For example, integrators can use the Electronic Systems Outlook to benchmark sales numbers and prepare business valuations. Growth indicators can be used to determine incentive programs, reveal new market potential, and appropriately distribute resources. This forecast data can also be shared with financial advisors and lenders to prove the stability of systems integrators in the marketplace.
Register for the free webinar, “Using the ESO Winter 2019 Report to Benchmark Performance,” here.
The Electronic Systems Outlook is free for all NSCA members. It can be purchased by non-members for $600.
Non-member integrators can become NSCA members for as little as $600, depending on the size of the company, and receive this report as part of their membership package, which offers access to discounted education and training opportunities, updates on regional and national government affairs issues, free monthly industry webinars, and other exclusive industry research.
For more information about the Electronic Systems Outlook Winter 2019 report, to see a preview of the report, or to join NSCA, visit www.nsca.org or call (800) 446-NSCA.