Federal, State, Local and Canadian Government Contracting Trends for 2023

The government contracting industry is expected to remain highly competitive in 2023. In order to develop a winning strategy that can help fill their sales pipelines, government contractors need to understand which external factors are most likely to impact the contracting market, and what actions they can take to set themselves up for success.

To help contractors do that, Deltek’s research team behind the GovWin IQ platform of government market intelligence has put together a series of webinars and reports that share the biggest, most impactful trends to watch for contractors in the U.S. federal, SLED (state, local and education) and Canadian markets.

Read on for analysis of each government market in 2023, some of the key trends to watch and next steps that businesses selling to the public sector can take to find government contracts and set themselves up for success in the year ahead!

U.S. Federal Government Trends for 2023

Although inflation rates are expected to at least somewhat level out in the U.S. in 2023, government contractors across a wide range of industries are still experiencing challenges or recovering from a period of heavy inflation. However, federal agencies received a significant boost in funding for FY 2023 with the passage of appropriations. That is expected to drive meaningful growth in agency contract spending. Global supply chain issues, more adoption of GWAC and IDIQ contract vehicles, workforce issues, cybersecurity compliance and ESG initiatives are some of the other trends that Deltek’s GovWin IQ research team have included in their top 10 trends for the year ahead.

Vendors looking for analysis of each of these top 10 trends in federal contracting for 2023 can download this complimentary report.  Produced by GovWin's industry leading federal market analysis team, this research examines themes that will impact contractors' operational costs, business development strategies and competitive positioning in the year ahead. Government contracting organizations can benefit from this research by gaining critical industry knowledge and the latest updates on federal contracting trends like continuing resolutions, executive orders, rule changes, inflation, the war for talent, ongoing support for the conflict in Ukraine and other notable issues.

To find more information on the top federal government trends for 2023, government vendors can register for this federal-focused webinar hosted by Deltek’s SVP of Information Solutions, Kevin Plexico. Registration is free and attendees will get a deep-dive look at the spending patterns and plans that the federal government has in store for the coming 12 months, plus some actionable steps they can take to get ahead.

SLED Government Trends for 2023

Even though the crisis mentality of buying emergency items in 2020 is past, record high inflation driven by continued supply side constraints has affected (State, Local and Education) SLED government in various ways - particularly for basic commodities. Talent and workforce issues, similar to the federal sector, are major constraints in the public sector. And the increased focus on climate/environment and diversity should continue to be highly relevant and important in 2023.

For more detailed information on the biggest trends in SLED government sales, register for this complimentary webinar hosted by Deltek Research Manager Paul Irby. Attendees will get unrivaled analysis of the SLED market for 2023 – plus some strategies for building out a full and healthy SLED business development pipeline.

Or, for an overview of everything that the SLED contracting market is expected to bring in 2023, you can download Deltek’s 2023 SLED Government Forecast. Now in its 7th edition, this year’s annual forecast report includes commentary on the future of the market in the context of current economic conditions and shares outlooks for each of our 12 primary industries.

Canadian Government Trends for 2023

Public sector procurement in Canada is increasingly being used to advance the protection of the environment and support sustainable development, a trend which should continue into 2023. Expanded participation in cooperative purchasing and other forms of group buying will open up more opportunities to government suppliers, and recent federal legislation will encourage Canadian governments to improve accessibility in several priority areas, including procurement.

You can learn more about why DEI and cooperative purchasing programs are set to grow in influence in Canadian contracting – plus a broad look at the Canadian market – when you sign up for this complimentary webinar, hosted by Deltek Senior Research Analyst Brynn Bruder and Tactix Associate Lucie Leclerc-Cowell.

Not all industries are expected to grow at an equal pace in the Canadian market in 2023, but there are several that are expected to be blossoming and full of opportunity in the year ahead. To learn more about these top industry areas, check out Deltek’s recent research report, 5 Key Industries U.S. Suppliers Should Target in the Canadian Government Contracting Market