Deltek predicts $9.5 Billion in federal architecture and engineering spending by 2016

HERNDON, Va. – Deltek, the leading global provider of enterprise software and information solutions for professional services firms and government contractors, has released a new research report that predicts demand for architecture and engineering (A/E) services by the U.S. government will increase to $9.5 billion in 2016 from $8.1 billion in 2011, at a compounded annual growth rate of 3.2%.

Deltek’s “Federal Architecture & Engineering Market Outlook, 2011-2016” report shows that while overall agency budgets are under tremendous pressure, policy initiatives that drive cost savings will create opportunities specifically for architecture and engineering firms, and provide modest federal market growth over the next five years.

Deltek’s report provides analysis of key issues and trends that will shape the size and direction of the federal marketplace and future spending, and provides guidance on where A/E vendors can find the greatest opportunities.

“Construction spending will be a primary target for budget cuts, so in many cases agencies will shift their focus to maintenance and rehabilitation of existing buildings and structures versus new construction,” said Angie Petty, Senior Principal Research Analyst and author of the report. Additionally, energy efficiency and sustainability, physical security, risk to the public, portfolio right-sizing, telework, and data center consolidation will drive agency capital investments and maintenance decisions and, subsequently, A/E spending during the forecast period.

Federal Architecture & Engineering Market Outlook, 2011-2016 provides historic federal spending trends for A/E, construction, and maintenance, as well as analysis of top agency buyers of A/E services and forecasts for future government spending. The report also examines vendor-side market pressures and competitive trends and offers recommendations for maximizing corporate market positioning. For example, Petty suggests A/E firms refocus business development efforts on areas of opportunity such as civil works programs, military family needs, maintenance and repair, and U.S. infrastructure in order to weather the otherwise weak market.

Corresponding webinar
Deltek will also be hosting a Federal A/E Market Outlook Webinar, on Tuesday, August 30, to discuss information from the report and answer questions A/E firms may have about the market. During the webinar, Deltek will provide recommendations to help guide A/E companies to maximize their messaging, market position, and agency relationships to best take advantage of federal business opportunities.