U.S. construction spending is projected to decline in 2023, according to the NSCA, the Cedar Rapids, Iowa-based nonprofit association representing the commercial AV industry. In its Electronic Systems Outlook Winter Report, U.S. engineering and construction spending is forecast to end 2022 up 8% (the same as 2020 and 2021), led primarily by residential.
For 2023, however, the NSCA ‘s partnering research firm FMI forecasts a 2% decline in engineering and construction spending levels compared to 2022.
“Inflation is top of mind for integration company leaders this year,” says NSCA’s 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 Business & Leadership Conference on Feb. 28 to March 2, 2023, in Irving, TX, in what has become an annual tradition, 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, which walks 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. Registrations for the webinar are now available.
The Electronic Systems Outlook: Winter Edition 2022 is free to download for NSCA members.
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