NSCA, the not-for-profit association representing the commercial low-voltage electronic systems industry, announced the release of its Electronic Systems Outlook Winter 2021 report. This research includes information based upon actual data from January through November 2021. It also has forecasted information for 2022 and beyond.
NSCA has partnered with FMI to provide this biannual report. Per the organization, the report offers the newest, most relevant indicators of business opportunities for integrators.
Details of the Electronic Systems Outlook Winter 2021 Report
By tracking new construction starts and renovations across multiple markets — including healthcare, lodging, retail, education, houses of worship, and more — NSCA pinpoints which verticals should do well in 2022 and years to come. Total U.S. engineering and construction spending is forecast to end 2021 up 8% compared to up 6% in 2020, led primarily by residential.
For 2022, FMI forecasts 5% growth in engineering and construction spending levels compared to 2021. The Electronic Systems Outlook Winter 2021 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.
“We’re seeing an economy that should continue to improve in 2022 — despite a resurgence in COVID-19,” says Tom LeBlanc, NSCA executive director. “Integrators will be challenged, however, by the unpredictability of consumer confidence in their respective markets. But the Conference Board is seeing consumer confidence trend upward as this report is released. We recommend that integration companies use this time to emphasize backend operations and ensure profitability.”
During the Business & Leadership Conference on Feb. 23-25, 2022, in Irving, Texas, Chris Kuehl will use the report to analyze long-term trends, current conditions and the economic outlook for 2022 and beyond. Kuehl is the chief economist and managing partner for a firm that provides forecasts and strategic guidance.
In addition, NSCA will host a free, one-hour webinar on Feb. 15, 2022. The webinar walks integrators through the top 10 takeaways from the report’s data and how to apply this information to their own businesses.
For example, integrators can use the report 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 for NSCA members. For more information about the Electronic Systems Outlook Winter 2021 report, to see a preview of the report, or to join NSCA, visit www.nsca.org.
