The NSCA has released a new members-only Economic Outlook report developed in partnership with Chris Kuehl and Armada Corporate Intelligence, offering updated insights into financial performance, sales strategies and market conditions for systems integrators.
The new report replaces NSCA’s long-running Electronic Systems Outlook and provides macroeconomic analysis, construction forecasts, vertical market insights and a three-year sector outlook tailored specifically for commercial integrators.
Based on data from nearly 100 integration firms across North America, the report includes benchmarking on key business fundamentals such as markets served, labor utilization and financial performance.
Among the findings, negotiated and direct sales account for approximately 72% of industry revenue, signaling a continued shift away from competitive bidding. The data also points to improved financial health, with median gross profit margins reaching 34.2% and stronger cash positions across firms.
The report highlights workforce dynamics across the industry, noting that smaller firms are often operating at or above capacity, while larger firms are adjusting staffing levels to align with fluctuating demand. At the same time, recurring revenue continues to expand, representing the largest share of revenue as more integrators adopt managed services models.
NSCA said the report is designed to help integrators benchmark performance against peers, refine pricing and sales strategies and identify opportunities to improve operational efficiency and profitability.