The National Systems Contractors Association (NSCA) released its Winter 2024 Electronic Systems Outlook (ESO) report, providing an in-depth analysis of U.S. construction data from January through November 2024 and offering forecasts for 2025 and beyond. This twice-yearly report helps industry professionals stay informed about market changes that could impact their work. Available for free to NSCA members, the report also includes an exclusive webinar hosted with research partner FMI Corp., where key findings and trends are discussed in detail.
If you haven’t accessed the full report or webinar yet, here’s a snapshot of the trends shaping construction in the coming year across five critical sectors:
Manufacturing Construction: From Peak to Decline
The manufacturing sector witnessed a boom post-pandemic due to reshoring initiatives and policies like Buy American. While this momentum has begun to taper off, the anticipated decline through 2028 comes on the heels of historic peaks in 2020 and 2021. The sector’s strength is still evident, bolstered by ongoing government initiatives favoring domestic production. Despite the cooling growth, manufacturing construction remains a vital industry.
Government Construction: A Surge in Demand
Federal return-to-office (RTO) policies are set to reshape demand for government construction. Once underutilized, many federal office facilities must now adapt to accommodate a rising number of employees returning to in-person work. This increase could strain existing infrastructure, prompting solutions like new satellite locations and smaller regional offices. These developments point to opportunities for robust construction growth in this sector.
Warehouse Construction: Easing After the Boom
After years of expansion in response to e-commerce growth during the pandemic, warehouse construction has slowed. Reduced activity in 2024 signals another potential dip in 2025, attributed to overbuilding during the pandemic’s peak. Companies like Amazon have scaled back on new projects, reflecting this trend. However, with growing consumer reliance on e-commerce, a resurgence in warehouse construction is expected beyond 2027.
Courtesy / NSCA
Retail Construction: Adapting to Shifting Trends
The retail sector faces challenges as consumers continue to favor e-commerce over traditional stores. Inflation further pressures retail outlets as they adapt to evolving customer expectations. While physical locations are fewer, those that remain are pivoting toward offering innovative and immersive in-store experiences to compete with online shopping. Despite a predicted decline in retail construction in 2025, these adaptations hint at a sophisticated transformation within the sector.
Healthcare Construction: Preparing for a Surge
Healthcare construction is poised for growth, driven by the aging Baby Boomer population. The demand for clinics, continuing care facilities, hospitals and specialized treatment centers is increasing. Future projects will likely include advanced health technology integration, such as telehealth systems and wearable device support, catering to both physical and mental healthcare needs. With an aging demographic, the healthcare sector is set to experience sustained expansion.
Access the Report & Webinar
The Winter 2024 Electronic Systems Outlook arms AV professionals and related industries with the insights needed to plan for the year ahead. NSCA members can download the report for free and explore the details behind these findings. Additionally, the recorded webinar featuring FMI Corp. offers a valuable discussion around how these trends may influence the integration and AV sectors.
