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2011 Government Market Outlook


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Presentation that I gave to the WTIA on the outlook for the government market in 2011

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2011 Government Market Outlook

  1. 1. 2011 Government Market OutlookFebruary 1, 2011<br />Henry Chou<br />
  2. 2. Discussion Topics<br />2010 Year in Review<br />2011 State and Local Outlook<br />Information Technology Sector<br />Clean Energy Sector<br />
  3. 3. About Onvia<br />Leading provider of gBusiness solutions in US<br />Largest public sector procurement database<br />7,000 clients who sell to government, subcontract or supply<br />Actionable sales leads to custom market research<br />eProcurement Platform – 6,000 government users<br />Founder of<br />Primary markets<br />Architecture/Design, Engineering, Construction (Infrastructure)<br />Operations & Maintenance<br />Energy/Environmental/Water<br />Information Technology/Telecommunications<br />Medical/Healthcare<br />Vehicles/Equipment<br />Professional Services<br />
  4. 4. Trusted Information Source<br />Authority on gBusiness marketplace<br />
  5. 5. 2010 Year in Review<br />Total estimated gov’t spending of $5.5 trillion <br />Massive infusions of federal cash at state and local levels to try to stabilize economy<br />Second full year of trillion dollar stimulus efforts <br />Breakdown of non-security discretionary spending <br />
  6. 6. 2010 ARRA Spending <br />Majority of dollars still unspent<br />Investment portion of package has moved far more slowly than expected<br />Only 30% has reached the contractors and subcontractors that perform the work<br />~$120B of stimulus remains unspent<br />Expect remaining funding to go to longer-term infrastructure and energy projects<br />
  7. 7. Government spending will continue at record levels<br />Remains largest purchaser of goods and services<br />State <br />Most forecasting more money to spend in 2011 (NCSL)<br />Washington 1 of 3 states expecting revenues to increase more than 10%<br />Local<br />Struggling housing markets, slow consumer spending, and high unemployment driving declines in revenues(NLC)<br />Will be slower to recover because of lag in property tax assessments<br />2011 OutLook<br />Strengthening economy signals improved gov’t budgets<br />
  8. 8. ARRA WILL REMAIN CATALYST IN 2011 <br />Long tail of expenditures through 2016<br />2010 dollars mostly went to public sector jobs and programs<br />Focus shift from “shovel ready” to “job ready”<br />Creation of long term private sector jobs rather than temporary or public sector jobs<br />
  9. 9. 2011 Technology Investment Areas<br />Continued investment in industry<br />IT is a key driver of the next economy<br />Growing focus on healthcare IT <br />17.5% CAGR through 2014 (BCC Research)<br />State health information exchanges <br />Priority initiatives<br />Consolidation/ Optimization (Virtualization, Cloud Computing)<br />Broadband access<br />Cybersecurity<br />
  10. 10. Washington - IT/Telecom Market<br />Onvia tracked 976 opportunities in 2010<br />Expect similar level of activity in 2011<br />Significant opportunities at the state/local level <br />IT Telecommunications<br />9%<br />Year-Over-Year (YOY) Growth<br />-15%<br />+2%<br /># of Purchasing Events<br />+6%<br />-6%<br />+20%<br />2006<br />2005<br />2007<br />2008<br />2010<br />2009<br />Source: Onvia 2011<br />
  11. 11. Washington - IT/TeleCOM Market<br />2010 Sub-Market Breakdown<br />Of 3 biggest sub-categories, wireless communications is a specific area of opportunity<br />Source: Onvia 2011<br />
  12. 12. Washington – IT ARRA projects<br />Largest are around broadband access<br /><ul><li>Washington below national average for % of connections > 10 mbps
  13. 13. Broadband critical to creating economic development and jobs</li></li></ul><li>Top State/Local Agencies<br />City of Tacoma <br />City of Seattle<br />Chelan County Public Utilities District #1<br />King County <br />University of Washington <br />Pierce County<br />Port of Seattle<br />City of Spokane<br />Washington State DOT<br />Washington State University<br />Washington - IT/TeleCOMMarket<br />Top Agencies and Vendors<br />Awarded Vendors<br />Mainline Information Systems<br />Dell<br />Avaya<br />Right Star Systems<br />Siemens Enterprise Communications<br />Integrity Networks<br />Qwest<br />Advanced Media Technologies<br />IKON<br />ASB/Ricoh<br />
  14. 14. Clean Energy Market<br />Continued investments to advance clean energy in 2011<br />Clean energy was largest portion of ARRA directed towards infrastructure improvements<br />Continued deployment of smart-grid technologies from ARRA investments<br />Less capital intensive solutions will grow at faster rate – solar vs. wind<br />
  15. 15. Renewable energy<br />80% of electrical power from renewable sources by 2020<br />Goal of creating 25,000 jobs in clean energy by 2020<br />Electric vehicle infrastructure<br />Recharging stations along I-5 corridor<br />ARRA<br />$2.6B in funding for selected DOE projects<br />175 DOE projects in WA<br />Washington - Clean Energy Market<br />Onvia tracked 165 opportunities in 2010<br />
  16. 16. Washington - Clean Energy Projects<br />
  17. 17. Washington - Clean Energy<br />Top Agencies and Vendors<br />Top State/Local Agencies<br />City of Tacoma<br />Chelan County Public Utilities District #1<br />City of Seattle<br />Snohomish County Public Utility District #1<br />Washington State Department of General Admin<br />Island County Fire Protection District<br />Seattle Public Schools<br />Bellingham School District 501<br />City of Bellevue<br />Awarded Vendors<br />NAES Power contractors<br />Quantum Engineering and Development, Inc.<br />McKinstryEssention Inc.<br />Voith Hydro, Inc.<br />CMEC Arc Electric JV LLC<br />ABB<br />Siemens Industry & Energy Inc.<br />
  18. 18. Thank You<br />Henry Chou<br />AVP Product<br />Onvia, Inc.<br />509 Olive Way Suite 400<br />Seattle, WA 98109<br /><br /><br /><br />