NSCA has announced the release of its Electronic Systems Outlook Winter 2022 report, based upon actual data from January through November 2022 as well as forecasted information for 2023 and beyond, and it forecasts a 2 percent decline in 2023 in engineering and construction spending levels compared to 2022.
NSCA partners with FMI to provide the biannual report that tracks new construction starts and renovations across multiple markets, including healthcare, lodging, corporate, education, houses of worship, and more, with this data helping NSCA better pinpoint which verticals should do well in years to come.
The Electronic Systems Outlook Winter 2022 edition also provides an updated view of construction data by market for electronic systems/technology, including AV, data/IT, building automation/control, life safety/fire/security, and digital signage/lighting. It notes that total U.S. engineering and construction spending is forecast to end 2022 up 8 percent (the same as 2020 and 2021), led primarily by residential.
“Inflation is top of mind for integration company leaders this year,” says 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 upcoming Business & Leadership Conference on February 28 through March 2 in Irving, TX, 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, 2023 that will walk 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. This forecast data can also be shared with financial advisors and lenders to prove the stability of systems integrators in the marketplace. Register for the webinar here.
