NSCA Electronic Systems Winter Outlook Forecasts Flat Construction Spending

Despite the flat forecast, three markets are predicted to experience growth rates of 5% or more: lodging, corporate offices and government buildings.

CEDAR RAPIDS, Iowa — National Systems Contractors Association has released its latest NSCA Electronic Systems Outlook report, which includes construction outlook information based on data from January through November 2019, as well as forecasted information for 2020.

NSCA partners with FMI to provide the 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, among others — NSCA aims to pinpoint which verticals should do well in 2019 and beyond.

The Electronic Systems Outlook Winter 2019 edition shows total U.S. construction spending put in place is expected to be flat at 0% growth compared to 2018. Looking ahead to the current year, FMI forecasts a 1% increase in spending over 2019.

Understanding construction put-in-place totals allows NSCA to predict patterns of slowdowns, recoveries and market/geographic changes.

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 A/V, data/IT, building automation/control, security and fire/life-safety, 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,” says 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, according to the report.

NSCA will host a free webinar on Feb. 18 to help integrators learn more about this data and how to apply it to their own businesses. For example, integrators can use the report’s findings 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, according to NSCA.

The Electronic Systems Outlook is free for all NSCA members. It can be purchased by non-members for $600.

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