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As revealed in Onvia’s Q1 2016 State, Local and Education Procurement Snapshot the overall SLED contracting market saw a 2.7% rate of increase in competitive bid & RFP opportunities.

Out of four major industry groups examined in the report, the architecture, engineering and construction (AEC) group saw the second largest rate of growth of 3.1% over the same quarter the previous year.

Special to this blog is a free, easy-to-share infographic that summarizes what happened in the Q1 2016 AEC SLED contracting market:

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Infographic: Architecture, Engineering, Construction

Uptick in AEC Contract Growth Confirms Public Sector Market Expansion

Onvia, as well as a variety of sources, support modest growth for the 2016 SLED market overall. For example, the National Association of State Budget Officers (NASBO) reports that 43 out of 50 state governments enacted general fund budget increases for fiscal year 2016.

The AEC market specifically showed a 3.1% rate of growth in the number of opportunities, which follows a 4.0% rate of growth during the previous quarter (Q4 2015). This continued growth is an indicator that as agencies have grown their total volumes, they made sure infrastructure spending also kept pace.

Highlight: Engineering and Design Contracts at 6.3% Growth

For this analysis the AEC group is broken out into three sub-categories: Architecture & engineering, construction & supplies and water & energy.

Out of the three sub-groups, the architecture & engineering sub-group saw the largest rate of increase in bid & RFP opportunities for the quarter at 6.3%, about 2x the growth rate of the construction & supplies sub-group.

AEC % annual change in bids & rfps q1 2015 vs q1 2016

Highlight: AEC Education Contracts Driven by School Renovation and Expansion

When looking at the distribution of AEC projects issued in Q1 2016 by level of SLED government, projects from education agencies stood out with a 6.9% rate of growth. This strength in education continues a trend seen since the previous quarter (Q4 2015) and is in part driven by a combination of demand for new schools as well as renovations and expansions for classrooms, STEM labs and other needs.

Other than the 6.9% AEC growth in education, there was a 2.9% rate of growth at the state level and a 2.5% rate of growth at the local level.

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