The 8 Fastest Growing State & Local AEC Market Segments
This week’s list: The 8 Fastest Growing State & Local AEC Market Segments. Check back next week for more from #GovList!
State and local government demand for architecture, engineering, and construction (AEC) represents a $254 billion market. As of November 2014, the last month for which data is available, the total market had grown 3.3% year-over-year. So, using data from the Census’s survey of construction spending, we can point out the hot spots with growth exceeding 30% and a combined market value of over $16 billion.
- Higher education infrastructure (up 85.4%) – Student enrollments have been rising for years as prospective workers retool for current economic conditions. This $1.9 billion market is surging as campuses ramp up the power, water, and sewage capacity required to support this influx.
- Airport runways (up 47.7%) – If you’re tired of airports that are all taxi and no take-off, relief could be on the way. This $5.6 billion segment has seen major projects nationwide in airports large and small.
- Water supply pump stations (up 43.5%) – Rising population demands and environmental conditions are putting every drop of water at a premium and driving investment in this $1 billion category.
- Other higher education facilities (up 40.9%) – Competition among colleges has forced them to make campuses into attractive showpieces that sell themselves. Growth in this $2.3 billion segment reflects investments in a variety of amenities, including galleries, theatres, museums, and libraries.
- Highway and street lighting (up 40.7%) – Advances in energy-efficient LED lighting make easy-payoff investments in this $1.5 billion segment a no brainer.
- Dams and levees (up 37.9%) – According to the Association of Dam Safety Officials the average age of America’s 87,000 dams is 51 years. Spending in this $1.1 billion category will be driven by on-going maintenance and upgrades to rusting pipes.
- Sports facilities (up 35.2%) – With Atlanta looking to build a $1.2 billion stadium for the Falcons and major sports teams constantly demanding better facilities, this $1.8 billion market looks to be a growth category for years to come.
- Convention centers (up 31.3%) – Local government revenues remain at recession levels, so city councils are looking for new revenue sources. Convention and visitor business is a great way to lure taxpayers in from outside, which should keep this $1 billion segment quite active.
by Chris Dixon Senior Manager, State & Local Industry Analysis at Deltek
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