The Top State and Local Government Contracting Growth Areas for 2021

Posted by Nick Schiffler on May 13, 2021

The Town of Athens in the State of Georgia

The research team at GovWin recently published its annual report covering the top areas of growth in the state and local government contracting market, “10 Hotspots in State and Local Government Contracting for 2021”. The report reveals areas where state, local and education (SLED) government bids and RFPs have experienced recent notable growth.

To provide a look at the types of growth areas found in the report, we’ve put together a complimentary infographic highlighting the top 10 areas of state and local government contracting in 2021, which you can download below.

10 Hotspots Government Contracting 2021

The overall state, local and education (SLED) market is one of the biggest areas of opportunity for vendors across all industries. But the market is fragmented and complex, with tens of thousands of agencies releasing more than 450,000 competitive business opportunities each year. GovWin uses an industry-leading database of government contracting opportunities and data to make this market manageable for government contractors, including information on current, future and historical government spending information. 

In analyzing the areas where SLED bids and RFPs saw recent notable growth, a number of clear themes appeared that have influenced the SLED market over the last year and should continue to influence the market going forward.

Responding to the Coronavirus

The coronavirus pandemic led to rapid growth in bids and RFPs in several key areas representing the ‘front lines’ of the COVID-19 battle. This includes hotspots for decontaminating government facilities, stocking up on personal protective equipment (PPE) and buying more medical equipment to support healthcare during this difficult period.

Adjusting to Coronavirus Impacts

Several of GovWin’s SLED hotspots for 2021 related to the government making operational adjustments due to COVID-19. This includes the hotspots of streamlining procurement, expanding online learning (including laptops), and equipment/services for measuring climate and weather (to make up for government staff being furloughed).

Outsourcing for Efficiency and Scale

The outsourcing of medical lab testing and healthcare services is an industry niche that was already growing in dollars based on pressure for hospitals and clinics to operate in leaner ways, but saw an unusual rise in related opportunities influenced by COVID-19 testing.

Optimizing With Technology Innovations

GovWin’s research team identified three specific technology areas that saw high rates of growth that are also likely to continue in the future.

  • Accelerating business technology. As government staff transitioned to remote work, the pandemic served to accelerate certain existing technology trends that were already pushing SLED governments toward more streamlined, automated and digital business processes. This has driven demand for technology solutions related to managing a virtual workforce.
  • Managing mobile devices. Moving from on premise to remote work for most government staff was a major challenge for IT managers, resulting in an increased amount of government investment in mobile device management services, mobile management software and tablet computers.
  • Improving the construction process with tech solutions. With tightening budgets, SLED governments have come under more pressure to streamline their construction processes. This has led to more opportunities for software firms to offer construction-related solutions, like construction management software and permit tracking software. 

Get More Details on Hotspots in State and Local Government Contracting for 2021

GovWin’s annual hotspots report on the state and local government market was created by our research team sifting through thousands of industry sectors and identifying 10 products or services that are experiencing growth in usage or adoption by SLED governments - based on factors like new technologies, new standards and the ongoing coronavirus pandemic.

To see the full list of hotspots and understand the context behind why these 10 areas are the top growth drivers in state and local government contracting in 2021, click the link below to access a free copy of the full report.


10 Hotspots in State and Local Government Contracting for 2021

Download Your Copy


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