As revealed in Onvia’s State, Local and Education Procurement Snapshot for Q2 2016, competitive bid & RFP opportunities in the overall SLED contracting market decreased slightly at a rate of -1.4% when compared to the same quarter the previous year. However, when comparing H1 2016 vs H2 2015, SLED market opportunities increased slightly at 0.6%.
Of the four major industry groups examined in the report, the Business Services group saw a 1.6% rate of growth over the same quarter the previous year. This is the second largest rate of growth among the industry groups that were examined for the quarter.
Special to this blog is an easy-to-share infographic that depicts what happened in the Q2 2016 SLED Business Services contracting market:
Educational Services, Healthcare, Professional Services and Public Safety Contracts in High Demand
While the overall SLED market saw a decline in growth in Q2 2016, it’s important to note that doesn’t mean there aren’t areas seeing high government demand. The SLED market is vast and fragmented with thousands of agencies purchasing a wide range of products and services. It’s a market where there are always hotspots and trending areas of growth that signal great opportunities for vendors to sell their products and services. To help highlight more bright spots in the SLED contracting market for contractors Michael Keating, Senior Editor for American City and County also interviewed procurement thought leaders and mayors for their commentary.
For this analysis the Business Services group is broken out into seven sub-categories: Educational services, financial services, food services, healthcare, office equipment, professional services and public safety.
Educational services saw the largest rate of increase in bid & RFP opportunities for the quarter at 4.7%. This is followed by positive growth rates for healthcare services (up 4.0%), professional services (up 2.6%) and public safety (up 1.0%).
Education Agencies Saw the Highest Rate of Growth for Business Services Opportunities Published for the Quarter
When looking at the distribution of Business Services projects in Q2 2016 by level of SLED government, projects issued by education agencies stood out with a 4.3% rate of growth. This follows a 12.5% rate of growth by education agencies in Q1 2016. Following education was a 2.6% rate of growth by local agencies and a -1.8% rate of growth by state governments.