In Onvia’s latest study, 10 Hotspots in Government Contracting for 2016, our market analysis team discovered that state, local and education (SLED) government contracts related to industrial and marine projects grew 16% in 2015 over 2014. Out of nearly 500 unique industry categories analyzed for the report, bids & RFPs related to industrial and marine projects represent the #9 ranked area for growth in the SLED government contracting market.
A slight majority (56%) of the bids & RFPs that make up this category are marine related -- such as projects for harbors, docks and piers. The remaining (44%) are industrial projects, primarily for warehouse construction and other smaller industrial structures. Contracting volumes in both segments are growing at a similar and steady pace, indicating strong economic growth and the willingness of government agencies to spend on upgrades and improvements to these facilities.
2015 Was a Banner Year for Construction
A recent construction trends outlook by leading real estate consulting firm, Jones Lang LaSalle, revealed that “2015 was a banner year for post-recession construction activity.” The firm predicts that construction growth with continue in 2016, but at a slightly slower rate.
Out of the key construction areas examined in the firm’s outlook (office, industrial, construction costs and renovation) industrial projects stood out as particularly strong.
Industrial construction was the shining star as consumer confidence grew.Jones Lang LaSalle
Which Agencies Issue the Most Industrial and Marine Contracts?
Onvia’s analysis shows that vendors pursuing projects related to industrial and marine construction are most likely to find the largest number of opportunities at the city level. City agencies accounted for 37% of the contracts analyzed for the report. Contractors shouldn’t ignore state level opportunities which come in at second place, representing 27% of the contracts.
Contractors can further narrow their pursuit efforts by focusing on coastal states, particularly the top 5 states for issuing related contracts highlighted in the heatmap below:
How to Get Ahead of the Competition and Win More Industrial and Marine Contracts
With the awarded value of industrial and marine contracts averaging $2 million for cities, $1.8 million for special port districts and $600k for all other levels of SLED government, contractors have the opportunity to pursue and win a wide range of contracts in this space.
Onvia recommends that businesses who are interested in pursuing these state and local contracts first focus their outreach efforts on city and port agencies. It’s also important to note that many of these large projects are often discussed years before issuance of the competitive bid or RFP. Contractors who track industrial and marine mentions in capital improvement plans, transportation plans and budgets can greatly increase their chances of winning the awards.
Industrial and Marine Projects Aren’t the Only Growing Segments in Government Contracting
Watch the video below to learn about 9 other contracting hotspots that have seen notable growth rates in bids & RFPs over the last two years: