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,” said 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 22nd annual Business & Leadership Conference next month, in what has become a yearly 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.
Also, NSCA will host a free webinar on Feb. 18, 2020, to help integrators learn more about this data and how to apply it to their 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.