NSCA Winter Forecast Projects Modest Growth for Construction Industry

CEDAR RAPIDS, Iowa — All signs show that the nation’s construction sector continues to experience modest growth and improvement in new construction, renovations, repairs and retrofits, according to the latest installment of the National Systems Contractors Association’s (NSCA) Electronic Systems Outlook report.

The bi-annual forecast provides updated indicators of new business opportunities by tracking new construction starts and renovations in the commercial buildings sector. It also tracks residential construction due to its impact on the new construction of schools, retail facilities, houses of worship, and lodging.

The 2013 winter edition provides a revised look at construction data by markets and systems. Compared to 2012, total commercial construction put in place for 2013 will finish at $352.5 billion, which is down 0.5% from 2012 (and lower than originally predicted). The 2013 summer edition of the Electronic Systems Outlook originally forecasted total commercial construction put in place at $913 billion; the new data in the 2013 winter edition demonstrates why it’s crucial to keep current with industry forecasting and benchmarking data, according to NSCA.

There are a few economic concerns covered in the report that touch all market sectors. The first is the continued decline in public construction and expectations of more as sequestration continues. Second, lenders are still tight with their lending criteria. Consumers are being cautious about increasing their debt load, including their share of public debt with new bond issues for local municipalities.

Overall, electronic systems are increasing in total volume, but show a slight reduction from 2012. The forecast indicates that approximately $19.29 billion were spent in 2013 on electronic systems, down very slightly from the $19.31 billion spent in 2012. The original 2013 forecast expected spending closer to $20.3 billion

“For years, we’ve been following commercial construction reports,” says NSCA Executive Director Chuck Wilson. “We found that the electronic systems industry correlates with these trends. We expect 2014 construction put in place to total near $977 million.”

Systems integrators can use this new outlook report to benchmark their own sales numbers and prepare business valuations. Growth indicators can be used to determine incentive programs, reveal new markets with potential, and appropriately distribute resources.

The NSCA Electronic Systems Outlook is free for members. For non-members, it can be purchased for $349. Nonmembers can also join NSCA for $595 and receive this report as part of their membership package. For more information, visit nsca.org or call (800) 446-6721.

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