NSCA Electronic Systems Outlook: 6% Decline in Construction Growth

Total U.S. construction spending put in place is forecast to end 2020 up 1% compared to a 2% increase in 2019, according to NSCA.

CEDAR RAPIDS, Iowa — NSCA, a not-for-profit association representing the commercial low-voltage electronic systems industry, has released its Electronic Systems Outlook Winter 2020 report. The research includes information based upon actual data from January through November 2020, as well as forecasted information for 2021 and beyond.

NSCA partners with FMI to provide this biannual 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 aims to pinpoint which verticals should do well in 2021 and years to come.

Total U.S. construction spending put in place is forecast to end 2020 up 1% compared to a 2% increase in 2019. For 2021, FMI forecasts a 6% decline in engineering and construction spending compared to 2020.

The Electronic Systems Outlook Winter 2020 edition also provides an updated view of construction data by market for electronic systems, including A/V, IT, building automation, security and fire/life-safety, and digital signage and lighting.

“2020 was certainly a challenging year for NSCA members. Projects were put on hold and some were cancelled altogether,” says NSCA Executive Director Chuck Wilson. “On the flipside, we saw rapid technology deployment for mission-critical applications placing huge demands on available labor and supply chain resources. At this time last year, our No. 1 issue was a lack of qualified workers. Today, our No. 1 issue is revenue predictability and matching revenue to staffing.”

During the virtual Business & Leadership Conference (Feb. 24-25), Chris Kuehl, a chief economist, will use the Electronic Systems Outlook Winter 2020 report to analyze long-term trends, current conditions, and the economic outlook for 2021 and beyond.

In addition, NSCA will host a free, one-hour webinar on Feb. 16 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.

The 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 and to see a preview of the report or to join NSCA, go here or call (800) 446-NSCA.

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