"Even though the broader SLED market saw a slight decline in published procurements in Q2 2016, it's important to focus on the bigger picture," said Alberto Sutton, Senior Vice President of Marketing. "The SLED market is vast and fragmented, with tens of thousands of agencies and a variety of industries that sell to those agencies. In this market, there are always segments and hotspots that will see significant growth in competitive bids & RFPs," Sutton added.
Onvia Market Analyst, Paul Irby, said that the Q2 2016 result is consistent with other evidence that the estimates of economic growth and government spending have been coming in below expectations. This includes downgrades in GDP, the federal government delaying interest rate increases, and reductions in the pace of government spending. "Onvia believes these trends point to a market that continues to represent stability but with a slowing overall rate of growth. In the evolving business-to-government (B2G) market, the best vendors will be smart about their tactics and strategies and seek out the best sectors and levels of government where their efforts will be rewarded," said Irby.
The report segments the contracting market in four key industry groups, representing various sub-sectors:
- AEC (Architecture/Engineering/Construction)
- Business Services (Education, Financial, Healthcare and other services)
- IT/Telecom (Consulting, Hardware, Software and Wireless/Telecom)
- OMT (Operations/Maintenance/Transportation)
For Q2 2016, the IT/Telecom group saw the healthiest rate of growth of 3.8% YoY driven by increases in IT consulting, software and wireless/telecom. The diverse Business Services group also recorded positive growth for the quarter highlighted by bid & RFP increases in professional services, educational services, healthcare services and public safety.
Michael Keating, Senior Editor for American City & County and Government Product News, offers expert commentary, citing interviews he conducted with agencies and procurement thought leaders. The special feature examines the current pulse of the market and highlights specific areas of strength for businesses selling to the government.
Business looking to strategically grow their government sales are encouraged to download the complimentary report from Onvia's website here.
Since 2000, Onvia (NASDAQ: ONVI) has been serving both government agencies and businesses by delivering relevant bid, award, agency, vendor and budget data that helps our business clients and our government partners succeed in the business-to-government (B2G) marketplace. Onvia tracks and reports on the spending of tens of thousands of federal, state and local government agencies, giving businesses and agencies a single comprehensive source for navigating B2G commerce.
For more information about Onvia, visit http://www.onvia.com
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