Federal Architecture and Engineering Market Outlook, 2011-2016

Abstract

Deltek’s Federal Architecture & Engineering Market Outlook, 2011-2016 illustrates that demand for architecture and engineering (A/E) services by the U.S. government will increase from $8.1 billion in 2011 to $9.5 billion in 2016 at a compound annual growth rate (CAGR) of 3.2%.

Key Findings

This report analyzes the trends in the federal A/E market using the FY2012 budget request, coupled with historic spending trends, agency construction and renovation plans, and interviews with federal and industry thought leaders in the federal A/E market. Building on the current market environment and examining future drivers and inhibitors, Deltek forecasts spending trends over the next five years. Deltek examined issues related to administrative policies, funding challenges, individual agency priorities, workforce trends, and the federal real estate portfolio to forecast the size and direction of this market. Key forces currently shaping this market include:

• Growing federal deficits and competing priorities pressuring agency discretionary, construction, and maintenance budgets
• Administrative initiatives such as energy efficiency and sustainability, disposal of unneeded real estate, telework, insourcing, and the current state of U.S. infrastructure shaping the market
• Impacts of project delivery methods such as design build, early contractor involvement, and the potential use of public-private-partnerships in the federal arena
• Effects of industry merger and acquisition activity on vendors and government buyers
• Slow post-recession recovery continuing to hinder the A/E marketplace
• Pressures on agencies to stretch budgets and maintain facilities and structures, rather than build new

Critical Insight for Vendors

This report provides readers with a detailed view of federal A/E spending and a market forecast for the next five years, and is designed to enhance a vendor’s federal planning process with relevant, strategic analysis and market insight. The report provides recommendations which will guide A/E firms to maximize their messaging, market position and agency relationships to best take advantage of federal business opportunities.

Deltek’s Federal Architecture & Engineering Market Outlook, 2011-2016 is delivered in PowerPoint, along with an Executive Briefing presentation summarizing the key findings, and an Excel workbook with data for the various forecasts and other key findings.