CEDAR RAPIDS, IA, Feb. 15, 2017 – NSCA’s Electronic Systems Outlook has been updated 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 provide this report to the industry, which offers 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 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, we expect 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. Looking at markets, the outlook continues to be positive for all markets through 2017, but the three-year outlook? Less rosy.
Lodging construction growth will drop from 19% to just 9% in 2017. Manufacturing construction took a breather in 2016, but we expect it to get back in the game at 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, we expect a 4% growth rate for 2017 in healthcare construction.
“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.”
NSCA will host a free one-hour webinar on Feb. 21, 2017, 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. 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 a free download for Gold and Platinum NSCA members ($49 for a printed copy). The printed report is available for $199 for Bronze and Silver members, and $399 for non-members.
Non-members can become NSCA members for $595 and receive this report as part of their membership package, which offers access to discounted education and training opportunities, updates on regional and national government affairs issues, free monthly industry webinars, business tools and resources, and other exclusive industry research.
For more information about the Electronic Systems Outlook Winter 2016 report, to see a preview of the report, or to join NSCA, visit www.nsca.org or call (800) 446-NSCA.
The National Systems Contractors Association (NSCA) is the leading not-for-profit association representing the commercial low-voltage electronic systems industry. NSCA is a powerful advocate for all who work within the low-voltage industry, including systems contractors/integrators, product manufacturers, consultants, sales representatives, architects, specifying engineers, and other allied professionals. NSCA is dedicated to serving its contractor members and all channel stakeholders through advocacy, education, member services, and networking designed to improve business performance. For more information, visit www.nsca.org.