Twice annually, we partner with management consulting company FMI to produce the Electronic Systems Outlook report.
For years, integrators have relied on the Electronic Systems Outlook report to get a real-time read on the construction outlook and adjust how they go to market accordingly. Every time we analyze and share our updated research, new insights are uncovered.
The latest report—the Electronic Systems Outlook Winter 2021 edition—includes information based on actual construction data from January through November 2021, as well as forecasted information for 2022 and beyond. Total U.S. engineering and construction spending is forecast to end 2021 up 8% compared to up 6% in 2020.
The retail and manufacturing markets were up in 2021 compared to 2020. Down were lodging, corporate, education, and houses of worship. Looking on the bright side, these down markets are poised to come back strong in 2022, with return-to-work, return-to-school, and return-to-travel strategies requiring integrated solutions.
To dig deeper and turn this research into actionable insights for integrators, we recently hosted a free webinar where we—along with FMI— went through the data we uncovered, including market and technology performance expectations in the coming years.
As part of this conversation, we also revealed 10 takeaways from the Electronic Systems Outlook Winter 2021 report. Here are a few snippets of what we discussed:
- What the 7% inflation means to builders and integrators in the commercial market.
- The correlation between our market and the residential growth reflected in the report.
- Why the government market is down significantly despite the Infrastructure Investment and Jobs Act.
- Why the houses of worship market continues to decline despite increased demand for remote worshipping.
- The increasing demand for retail distribution centers and the impact on more local retailers. Online sales fell a bit when comparing 2020 to 2021. What does it mean if brick-and-mortar retailers are slowly starting to bring people back into their stores?
- Why school spending is down since 2018 in the acoustics/audio/AV category compared to other technologies.
- Why healthcare is the only institutional segment anticipated to experience an increase in construction spending in 2022—and what this means for integrators.
- Why lodging is down 32% (almost double from 2020 numbers of down 17%) and the impacts this will have on the industry.
You can take the answers to these questions and use them to determine things like where your best opportunities lie, the significance of remodel opportunities, and which vertical markets will have the slowest and quickest recoveries.
(If you’re a non-member who wants a copy of the Electronic Systems Outlook Winter 2021 report, then contact us.)