First quarter indicates strong year ahead for AEC market

The first quarter of 2015 was quite busy for the architecture, engineering, and construction (AEC) sector, with approximately 19,500 solicitations released. The number of bids grew steadily throughout the quarter, with 5,725 issued in January, 6,139 in February, and 7,636 in March. This growth indicates that governments will continue to increase their procurements as the warmer months roll in.

Nearly 30 percent of the solicitations released in Q1 had a general government requirement, while 28 percent had a transportation requirement. Education was a close third at 21 percent. Not surprisingly, most bids were released out of transportation departments, even beating out purchasing and procurement departments, which came in second in the number of bid issuances.

According to the bids captured in the GovWin IQ database, the top five states with the most solicitations released were Texas, California, Virginia, New York, and Ohio. Bids coming out of these five states accounted for just more than 32 percent of total bids released in Q1, and would be excellent locations for AEC vendors looking to expand to new markets.

On a more local note, the top five cities and counties releasing bids in Q1 were New York City (NY), Los Angeles County (CA), the city of Columbus (OH), the city and county of San Francisco (CA), and the city and county of Honolulu (HI).

The rising number of solicitations released in Q1 is a strong indicator that the AEC sector is in recovery mode after the 2007 recession and that not only states, but local governments, which often lag in the recovery process, are finally at a point where they feel comfortable spending again. Vendors should expect the number of AEC solicitations released to be on par with Q1 for the remainder of 2015. For additional details about what state governors have in store for AEC, take a look at Deltek’s state infrastructure priorities blog.

You can learn more about current procurement opportunities in the GovWin IQ State and Local Opportunities database. Not a Deltek subscriber? Click here to learn more about Deltek's GovWin IQ service and gain access to a free trial.