Total U.S. engineering and construction spending is forecast to end 2023 up 10 percent, a slightly slower pace than the 12 percent in 2022, according to the NSCA’s newly released Electronic Systems Outlook Winter 2023 report.
For 2024, market research firm FMI forecasts a 2 percent increase in engineering and construction spending levels compared to 2023.
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, corporate, education, houses of worship and more — NSCA pinpoints which verticals should do well in 2024 and the years to come.
The Electronic Systems Outlook Winter 2023 edition provides an updated view of construction data by market for electronic systems/technology, including audio/visual (A/V), data/IT, building automation/control, life safety/fire/security, and digital signage/lighting. This latest report includes information based on actual data from January through November 2023, as well as forecasted information for 2024 and beyond.
“While residential construction is down, commercial construction is up. The highest growth among NSCA’s targeted segments includes manufacturing, lodging, and houses of worship,” says Tom LeBlanc, NSCA executive director. “Manufacturing, for example, is up 78 percent as compared to 2022, thanks to the Infrastructure Investment and Jobs Act, CHIPS and Science Act, and the Inflation Reduction Act. This is good news for our industry.”
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. This 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 Electronic Systems Outlook Winter 2023 report, to see a preview of the report, or to join NSCA, visit nsca.org or call (800) 446-NSCA.
