NSCA Electronic Systems Outlook Forecasts 3% Jump in Construction Spending
Most market segments are likely to grow and be considered stable, while the houses of worship niche is the only segment expected to decline in 2019.
The Electronic Systems Outlook is free for NSCA members.
CEDAR RAPIDS, Iowa — National Systems Contractors Association has released its latest NSCA Electronic Systems Outlook report, which includes construction industry projections based on data from January through November 2018, as well as forecasted information for 2019 and beyond.
The association partners with FMI to provide the report, which offers the 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 identifies which verticals should do well in 2019 and years to come, according to a press release.
Total U.S. construction spending put in place is expected to end up 5% higher in 2018 vs. 2017. In 2019, NSCA forecasts a 3% increase in total construction spending over 2018.
The Electronic Systems Outlook Winter 2018 edition also provides an updated view of construction data by market for electronic systems/technology, including A/V; data/IT; building automation/controls; fire/life-safety and security; and, digital signage and lighting.
“This report makes it easier for members to decide where to focus their efforts in specific regions of the country,” says NSCA Executive Director Chuck Wilson. “Primary growth segments in 2019 are expected to include corporate offices, education, government, and lodging — all with forecasted growth rates of 5% or more.”
Most other segments are likely to grow (roughly with the rate of inflation) and be considered stable. The houses of worship market is the only segment expected to decline in 2019.
The NSCA’s upcoming Business & Leadership Conference will once again feature economist Chris Kuehl delivering a market forecast and strategic guidance based in part on the Electronic Systems Outlook Winter 2018 report. He will analyze long-term trends, current conditions and the economic outlook for 2019 and beyond.
In addition, NSCA will host a free, one-hour webinar on Feb. 19 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 about the Winter 2018 report, to see a preview of the report or to join NSCA, visit nsca.org or call (800) 446-NSCA.
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