The marketplace for infrastructure in the public sector is healthy and growing, as Onvia’s research team found in their special report Sizing Up B2G Infrastructure: Government Contracts & Investments for 2017-18. Infrastructure and construction companies have the chance to capitalize on the new wave of attention their industry is receiving and win more government contracting leads.
Our team identified a number of examples of why vendors in fields like water, energy, architecture, engineering and construction have reason to be confident in their ability to grow their public sector sales. Here are five reasons infrastructure contractors have a positive outlook on the next 12 months.
The End of the Historical Under-Investment Trend
Onvia’s 2017 State & Local Government Contracting Forecast noted that long-term spending on infrastructure had dropped by $200 per person in the United States since 2010 (after inflation). It has recently reached near-crisis levels and surfaced as a top campaign and policy issue in the run-up to the 2016 presidential election.
This trend of under-investment is finally coming to an end, as politicians have begun re-thinking state, local and federal infrastructure funding options. By the end of 2016 a growth in infrastructure funding was already visible, in terms of both spending allocation and government contracts released.
$200B in New Voter-Approved Projects
In November of 2016, voters in 25 states across the country approved bond and tax initiatives to fund more than $200 billion in infrastructure projects. This included funding for a variety of project types, including road construction, statewide water propositions, and transportation and public transit expansion, to name a few.
Potential Impact of Federal Infrastructure Funding
In a May 2017 survey of government contractors, when respondents were asked which pro-business policy change would have the most positive impact on their company’s government sales, the most common answer at 30% was “approved funding for an infrastructure stimulus.”
While details about Trump’s proposed $1T national infrastructure plan are still scarce, his administration has spoken frequently about making greater federal infrastructure funding a priority. Future details from Trump’s budget will help bring more clarity to the impact a stimulus might have.
High Business Confidence in the Economy
The survey of government contractors indicated that infrastructure companies are expecting an increase of 9.6% over last year in their sales to the public sector. The overall health of the economy, government agency budgets and a rise in cooperative purchasing were some of the top reasons these companies are projecting growth.
While there is certainly uncertainty in the air, overall there is a sense of confidence in the economy that I believe will translate into more tax revenue and larger budgets.Vendor interviewed in Onvia’s 2017 Survey of Government Contractors
Growth in Multiple Industry Sectors
Onvia tracks the fastest-growing sectors each year in our Government Contracting Hotspots reports. Several of the top 10 areas of growth this year were driven by infrastructure demands. Sectors with greater numbers of government bids and RFPs include a 14% growth in construction site grading, a 14% growth in disaster response, and a 12% growth in water treatment and quality products and services.
The Time is Right to Grow Your Public Sector Business
For companies that do business in industries related to infrastructure, there’s no better time to expand your business in the public sector. Onvia provides the market insights and sales intelligence that have helped thousands of companies do exactly that.
You can access a complimentary copy of Onvia’s “Sizing Up B2G Infrastructure” report by clicking on the link below, or you can request a free consultation to have one of Onvia’s expert advisors show how you can use our sales acceleration technology to access more government contracting leads and increase your business in the public sector.