In the latest State, Local and Education (SLED) Procurement Snapshot from Onvia for Q3 2016, research illustrates a market that offers both overall stability, and specific, distinct areas of growth in 12 main industry groups selling to SLED.
The results demonstrate large differences in purchasing and budgeting priority across the various types of government agencies within SLED. Only one industry category appears in the top three industry rankings of growth rates for more than one level of government - Professional Business Services.
Below we have broken out the top three ranked industries for the quarter in each of three areas of government: State, Education and Local (comprised of cities, counties and other smaller local agencies). Vendors selling into these markets can use this information to determine the best targets for marketing their products or services by level of government.
State Government Rankings by Industry
- Architecture & Engineering
State governments as a whole increased their rate of growth to nearly 2% in Q3 in bids and RFPs. Driving this growth was the Architecture & Engineering industry, ranked #1 for growth among state agencies with contracts up 1.9% in Q3. Contracts in this category can vary greatly, from small scale design to large infrastructure projects, so growth in this industry means there are opportunities for public sector vendors of all sizes.
The Education industry also performed well at the state level, ranking #2 for growth. Construction projects, often tied closely to those of Architecture & Engineering, experienced positive rates of growth as well.
Education Government Rankings by Industry
- Public Safety
- Professional Business Services
Public Safety is a good example of an industry that features very different growth rates by level of government. While the overall industry growth rate in Q3 was down -3.4% from Q2, it performed very well at the education level. Some of the specific items that school districts and other education agencies are interested in purchasing include gun detectors, security cameras and general security services.
Other top purchasing areas for education agencies include Professional Business Services (such as personnel, document management and accounting) and Transportation (at the education level, this often consists of supply of school busses, fleets, vehicle parts or maintenance services).
Local Government Rankings by Industry
- Financial Services & Insurance
- Professional Business Services
- Operations & Maintenance
The top overall industry growth rate for the entire SLED market in Q3 was Financial Services and Insurance, up 7.4%, largely due to strong growth at the local government level. This industry encompasses a wide range of products and services, including those related to accounting, auditing, banking, billing, insurance, investments and retirement.
Professional Business Services also saw growth at the local level, ranking second. Another strong-performing sector was Operations & Maintenance. Encompassing contracts for things like cleaning services, waste management and infrastructure, this is an important industry for smaller government agencies like cities and counties.
Vendors wanting to succeed in SLED government sales, no matter what industry, need data and insights into market trends to create better sales targets and marketing priorities. Get the latest on about what’s happening in the SLED market – at every level of government and industry – by requesting your copy of Onvia’s State & Local Procurement Snapshot for Q3 2016 today.