Analyzing Public Sector Purchasing Activity in the U.S. and Canada: January - June 2024

Overview

Across North America, public sector purchasing activity from January to June 2024 has been exceptionally strong. This activity is driven by various government agencies, educational institutions, and a variety of other tax-funded entities, leading to marked opportunities for vendors, suppliers, businesses. Look for much more to come for the remainder of 2024. The landscape of public procurement is broad and intricate, including everything from infrastructure projects and healthcare enhancements to digital upgrades and environmental sustainability efforts. This report delves into some of the industries with the highest activity in terms of public sector solicitations and contracts, exploring the underlying reasons for this surge and the implications for stakeholders. A team of analysts combined forces to evaluate data in 2024 so far and identified the following among the most active industries.

The first half of 2024 has been marked by significant government investments targeted towards revitalizing public infrastructure, enhancing healthcare systems, modernizing educational facilities, and promoting sustainable development. These initiatives are not only important for improving public services but also play a meaningful role in stimulating economic growth. By looking at the purchasing trends across multiple sectors, we can gain insights into the priorities and strategic directions of state, local, and education (SLED) entities.

💡Bill Culhane, COO: “The data underscores a remarkable shift towards digital and sustainable solutions in public procurement. Agencies, particularly at the state and local level, are not just looking for immediate fixes but for long-term, innovative strategies to enhance public services and infrastructure.”

Key Insights

🎓Education (K-12 and Higher Education): The education sector has seen a steady rise in procurement activity, mainly via increased budgeting and funding for school renovations, technology upgrades, and health safety measures in the post-pandemic era. The focus has been on EdTech solutions, cybersecurity to protect student data, and updated learning environments and buildings. Schools are heavily investing in creating safer and more technologically advanced facilities for communities, students and staff.

In the wake of the COVID-19 pandemic, educational institutions have prioritized the enhancement of digital learning environments and the implementation of robust health and safety protocols. Investments in EdTech solutions, such as online learning platforms and interactive classroom technologies, have surged. Additionally, similar to other industries, there is a strong emphasis on cybersecurity measures to protect sensitive student, staff, and school data.

Sample Active Bids: “education”

🤝Healthcare and Public Health: Large investments in healthcare infrastructure and services have characterized the first half of 2024. The ongoing response to COVID-19, along with public health initiatives and upgrades to medical facilities, have powered this upswing. Key trends include the expansion of telehealth services, the implementation of advanced healthcare IT systems, and the continuing procurement of essential medical equipment.

The healthcare sector continues to adapt to the evolving needs brought about by the pandemic. Telehealth services have become a fixture in healthcare delivery, allowing for remote consultations and reducing the burden on patients and physical healthcare facilities. Advanced healthcare IT systems, including electronic health records (EHRs) and patient management systems, are being widely adopted to improve efficiency and overall delivery of patient care.

Sample Active Bids: “healthcare”

Sample Active Bids: “public health”

🏗️Construction and Infrastructure: Significant contracts for new constructions, repairs, and maintenance projects are obvious. These activities are primarily driven by government stimulus packages aimed at infrastructure improvements. Sustainable building practices, smart city developments, and enhancements in public transportation are the main trends shaping this sector.

Infrastructure development remains a top priority for government entities. Investments in sustainable building practices, such as the use of eco-friendly materials and energy-efficient designs, are gaining traction. Smart city initiatives, which integrate technology and data to improve urban living, are also on the rise. Additionally, public transportation systems are being modernized to enhance connectivity and reduce environmental impact.

Sample Active Bids: “construction”

Sample Active Bids: “infrastructure”

💻Information Technology: There has been a swell in IT-related solicitations, encompassing both software and hardware needs. Government agencies are increasingly focusing on digital transformation initiatives, driving demand for cloud computing solutions, cybersecurity measures, and AI-driven technologies. These trends reflect the important need for updating public sector IT infrastructure.

Digital transformation is at the forefront of public sector strategies. Cloud computing solutions offer scalability and flexibility, enabling agencies to efficiently manage their IT resources. Cybersecurity measures are essential to protect against growing and sophisticated cyber threats. AI-driven technologies are being leveraged to enhance data analysis, automate processes, and improve decision-making.

Sample Active Bids: “information technology”

Transportation: Public transportation projects and vehicle procurement have experienced high activity levels. Infrastructure bills and the modernization of public transit systems are major drivers for this. Among the trends include the adoption of electric buses, smart traffic management systems, and the development of infrastructure for autonomous vehicles.

Transportation systems are undergoing significant transformations to meet the demands of urbanization and environmental sustainability. The appropriation of electric buses and the development of infrastructure for autonomous vehicles have been key initiatives. Smart traffic management systems, which use real-time data to optimize traffic flow and reduce congestion, are also being requested, purchased and implemented.

Sample Active Bids: “transportation”

Environmental Services: Contracts for environmental conservation and sustainability projects have remained steady. The increased focus on climate change mitigation and green energy solutions has driven this activity. Key trends involve renewable energy projects, innovative waste management solutions, and comprehensive conservation efforts.

Environmental sustainability is a critical focus area for public sector procurement. Renewable energy projects, such as solar and wind farms, are being developed to reduce carbon emissions. Innovative waste management solutions, including recycling and waste-to-energy initiatives, are being implemented to promote a circular economy. Conservation efforts aim to protect natural resources and biodiversity.

Sample Active Bids: “environmental services”

Public Safety: Numerous solicitations for safety equipment and services have been issued, from across North America. Enhancements in emergency response systems and law enforcement capabilities are the primary drivers. Trends include the procurement of body-worn cameras, advanced surveillance systems, and comprehensive emergency preparedness kits.

Public safety initiatives are crucial for ensuring the well-being of communities. The procurement of body-worn cameras and advanced surveillance systems enhances transparency and accountability in law enforcement. Emergency preparedness kits and systems improve the readiness and response capabilities of agencies in times of crisis.

Sample Active Bids: “public safety”

Utilities: Procurement in water, electricity, and other utility services continues to be noteworthy. The aging infrastructure and the push for sustainable energy sources are major factors for this trend. Smart grid technologies, water conservation systems, and renewable energy integration are leading trends within this sector.

Utilities are investing in smart grid technologies to enhance the efficiency and reliability of electricity distribution. Water conservation systems are being implemented to address water scarcity issues. The integration of renewable energy sources, such as wind and solar power, is being used as a key strategy for reducing dependency on fossil fuels.

Sample Active Bids: “utilities”

Professional Services: High demand for consulting, legal, and management services has been observed. The need for expertise in handling complex projects and ensuring regulatory compliance drives this demand. Strategic planning, compliance audits, and project management services are the main trends. We fully anticipate that will continue throughout 2024 and beyond.

Professional services are in high demand to support the complex needs of public sector projects. Consulting services provide strategic guidance, while legal and compliance audits ensure adherence to regulations. The public sector views effective project management services as crucial for the successful execution of large-scale initiatives.

Sample Active Bids: “professional services”

Factors Driving Purchasing Activity

Government Stimulus Packages: A substantial injection of funds aimed at infrastructure and public services has triggered procurement activities across various sectors. These packages are designed to stimulate economic growth, create jobs, and improve public services, leading to increased procurement activity.

Pandemic Recovery: Health and safety upgrades in schools, hospitals, and public spaces are ongoing, driving significant procurement needs. The pandemic has highlighted the importance of resilient and adaptable public services, prompting investments in health infrastructure, educational technology, and public safety measures.

Digital Transformation: There is a marked shift towards digital services and enhanced cybersecurity measures, fueling IT-related procurements. Government agencies are prioritizing the modernization of IT infrastructure to improve service delivery, enhance cybersecurity, and support remote work. This will persist into the future.

Environmental Concerns: Investments in green technologies and sustainability projects are increasingly widespread, driven by climate change mitigation efforts. Public sector entities are committed to reducing their environmental impact through the adoption of renewable energy, sustainable building practices, and innovative waste management solutions.

Public Safety Enhancements: Upgrades in emergency response systems and law enforcement tools are continuous, ensuring public safety is maintained at high standards. These upgrades include the procurement of advanced surveillance systems, emergency preparedness kits, and body-worn cameras.

How BidPrime Helps Vendors and Suppliers

BidPrime plays an invaluable role in helping vendors and suppliers to identify public sector opportunities. Along with the widest coverage for bid notifications, through tools like Future Opps and Emerging Opps, BidPrime provides predictive analytics and comprehensive data insights, enabling businesses to forecast opportunities, budgets, and plans, optimize bid strategies, and detect sentiments about their businesses and competitors. These tools help vendors stay ahead of the competition by identifying pre-RFP opportunities and providing detailed information on active and potential future solicitations.

Future Opps allows vendors to anticipate upcoming contracts and prepare their bids well in advance, ensuring they have a competitive edge. Emerging Opps provides alerts on potential solicitations, helping vendors to proactively shape and quickly respond to opportunities. These tools leverage BidPrime’s extensive database of bids and RFPs and AI-based technologies, offering valuable insights into opportunities, market trends and procurement patterns.

💡David Jemaa, VP of Sales: “These findings, from our team of analysts, highlights the importance of having a robust understanding of public sector trends to effectively target opportunities. The increased activity in these sectors presents vast potential for vendors who can meet these emerging needs. Our team looks forward to discussing your needs and goals.”

🌟For more info on how BidPrime can assist you in the public sector procurement landscape and most effectively identify and qualify opportunities, visit BidPrime or quickly and easily sign up for a Free, no obligation trial. Discover how Future Opps and Emerging Opps can give your business the strategic edge it needs to succeed. Don’t miss out on the chance to transform your approach to public sector bidding and achieve better results.