NSCA Electronic Systems Outlook: 8% Increase in Construction Forecast
By tracking new construction starts and renovations across multiple markets NSCA pinpoints which verticals should do well in 2022 and beyond.
CEDAR RAPIDS, Iowa — Total U.S. engineering and construction spending is forecast to end 2021 up 8% compared to up 6% in 2020, led primarily by residential, according to NSCA’s Electronic Systems Outlook Winter 2021 report.
The research includes information based upon actual data from January through November 2021, as well as forecasted information for 2022 and beyond.
NSCA partners with FMI to provide the biannual report, which is said to offer 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 2022 and years to come.
For 2022, FMI forecasts 5% growth in engineering and construction spending levels compared to 2021.
The Electronic Systems Outlook Winter 2021 edition also provides an updated view of construction data by market for electronic systems/technology, including audio/visual, data/IT, building automation/control, life safety/fire/security and digital signage/lighting.
“We’re seeing an economy that should continue to improve in 2022 — despite a resurgence in COVID-19,” says NSCA Executive Director Tom LeBlanc. “Integrators will be challenged, however, by the unpredictability of consumer confidence in their respective markets. But the Conference Board is seeing consumer confidence trend upward as this report is released. We recommend that integration companies use this time to emphasize backend operations and ensure profitability.”
During the Business & Leadership Conference on Feb. 23-25 in Irving, TX, in what has become an annual tradition, Chris Kuehl — chief economist and managing partner for a firm that provides forecasts and strategic guidance — will use the Electronic Systems Outlook Winter 2021 report to analyze long-term trends, current conditions, and the economic outlook for 2022 and beyond.
In addition, NSCA will host a free, one-hour webinar on Feb. 15 which walks integrators through the top 10 takeaways from the report’s data and how to apply this information 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.
The Electronic Systems Outlook is free for NSCA members. For more information about how to purchase the report, to see a preview of the report, or to join NSCA, go here.
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