Deltek SLED PS Market Forecast 2024-27

The overall forecast annual growth rate of 6.0% during the entire period profiled of 2022-27 is higher than the previous year’s forecast mainly due to out-performance during 2023 specifically. Growth will average a more typical 4.8% after an unusual 2023 (2023-27). This was a year of “catch-up” and stimulus-boosted growth. The long-awaited recession never came and with a resilient economy along with ample extra funding from federal stimulus, governments saw 2023 as a year to strengthen investments as well as increase accounting-related projects.

The availability of federal stimulus funding in recent years has benefited this market by improving the purchasing outlook with less caution, however the winding down of broad American Rescue Plan Act (ARPA) funds including “revenue replacement” means the era of “peak stimulus” has largely gone. Remaining targeted stimulus programs (Infrastructure Act and Inflation Reduction Act) still in play will not be likely to significantly boost a typical government’s general fund. In our discussion of major market trends and drivers we examine this topic further including comments from the governors and which states as well as functional service areas are considered “at risk” of significant funding cuts. Our analysis of agenda items mentioned in the “state of the states” addresses of the governors contain some useful insights about certain types of professional services that are being called out as priorities. 

This Deltek forecast details SLED Professional Services spending across four major industry segments, including 1) Financial Investment Activities, 2) Accounting, Tax Preparation, Bookkeeping, & Payroll Services, 3) Management Consulting, and 4) Business Support Services. The methodology also includes breakouts of eight major buyer segments of level of government, including 1) cities 2) counties, 3) special purpose districts, 4) independent school districts, 5) higher education, 6) state government, 7) tribal government, and 8) other organizations. For the current year profile, we also estimate demand across GovWin’s 12 major government verticals and show breakouts by state for the four major types of spending.