Total U.S. engineering and construction spending is forecast to end 2022 up 8% (the same as 2020 and 2021), led primarily by residential, according to the Electronic Systems Outlook Winter 2022 report. For 2023, however, a 2% decline is forecast in engineering and construction spending levels compared to 2022.
The National Systems Contractors Association (NSCA) partners with market research firm FMI to produce 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, corporate, education, houses of worship and more — NSCA pinpoints which verticals should do well in 2023 and the years to come.
The research includes information based upon actual data from January through November 2022, as well as forecasted information for 2023 and beyond.
The Electronic Systems Outlook Winter 2022 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.
“Inflation is top of mind for integration company leaders this year,” said NSCA Executive Director Tom LeBlanc. “This report includes valuable insight that integration companies’ financial leaders can use to anticipate likelihood of changing interest rates and impact on lines of credit as well as true project costs. NSCA recommends that integrators use this report as a tool to help them navigate uncertainty and choose projects carefully.”
During the Business & Leadership Conference (Feb. 28-March 2) in Irving, Texas, in what has become an annual tradition, Chris Kuehl — NSCA’s chief economist and managing partner for a firm that provides forecasts and strategic guidance — will use the Electronic Systems Outlook Winter 2022 report to analyze long-term trends, current conditions and the economic outlook for 2023 and beyond.
In addition, NSCA will host a free, one-hour webinar on March 21, which walks integrators through 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.
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 to download for NSCA members. For more information about the Winter 2022 installment, to see a preview of the report, or to join NSCA, visit the association’s website or call (800) 446-NSCA.