NSCA Releases Winter 2016 Electronic Systems Outlook

The latest data on new construction starts and renovations across multiple markets in the commercial buildings industry pinpoint which verticals should do well in 2017 and beyond.

CEDAR RAPIDS, Iowa – The NSCA has updated its Electronic Systems Outlook for Winter 2016 and now includes information based upon actual data from January through November 2016, as well as forecasted information for the remainder of the year and in to 2017.

NSCA partners with FMI to publish the report, which is billed as offering the newest, most relevant indicators of business opportunities for integrators. By tracking new construction starts and renovations across multiple markets in the commercial buildings industry, NSCA says it pinpoints which verticals should do well in 2017 and beyond.

The Electronic Systems Outlook Winter 2016 edition provides an updated view of construction data by markets and electronic systems/technology. For construction, NSCA projects a 1% increase in construction put-in-place growth over the 5% in 2016.

While most of the economic components of the FMI Nonresidential Construction Index slipped lower, backlogs increased from 10 months to 12 months with expectations that backlog growth will continue in the near term. The outlook continues to be positive for all markets through 2017; however, the 3-year outlook is less rosy.

Lodging construction growth is projected to drop from 19% to 9% in 2017. Manufacturing construction took a breather in 2016, but NSCA expects it to rebound with 8% growth for 2017. Even at just 8% growth for 2017, corporate/office space will continue to outpace the overall economy in 2017. At this time, NSCA forecasts a 4% growth rate for 2017 in healthcare construction.


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“NSCA members should once again be optimistic in looking forward for the next several years,” says NSCA Executive Director Chuck Wilson. “Overall healthy, steady growth seems to be on the horizon for most markets they serve. Especially exciting is the outlook for Canada. We underestimated how devastating the last few years have been on the overall commercial construction-related projects in Canada, but are pleased to report a very strong comeback.”

Free Webinar on Tap

NSCA will host a free one-hour webinar Feb. 21 for integrators that want to learn more about the data and how it can be used within their organizations. 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.

For more information about the Electronic Systems Outlook Winter 2016 report, visit nsca.org.

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