Benchmarking offers the opportunity to investigate many issues and compare your performance to the industry or subindustry as a whole.
The 2019 Civil Construction Benchmark Report summarizes data from 173 civil contractors and categorizes them for comparison. The report offers key financial and non-financial information to assist civil contractors in comparing themselves to their peers. It also notes several issues at work in the industry today.
Top issues for the civil construction industry in 2019
1. The new revenue recognition standard will not disrupt the construction industry as initially thought, but there will still be changes to consider and plan for.
2. The new lease standard will likely be delayed one more year to December 31, 2021. Combined with increased equipment financing costs, this makes renting equipment possibly more attractive in the next couple of years. Companies should be proactive in tracking their leases and organizing all the needed documentation to properly implement these changes.
3. With the political environment split so heavily, funding for needed infrastructure improvements to the United States’ roads, bridges, flood management, and other areas is uncertain. The improvements appear to be supported by both sides in Congress, but political differences may cause funding shortages.
4. Green and other environmentally friendly production and construction methods are the wave of the future. Consider investing or developing these methods to be on the leading edge of this shift and possibly take advantage of the research and development tax credit.
5. With the import and export market affected by changing tariffs, forecasting costs continues to be difficult, and prices may change significantly after bids have gone out.
6. Issues involving skilled labor and the next generation of management continue to be a challenge in the industry. Finding the next generation of workers is paramount to future success.
7. Climate change is impacting jobs. Inclement weather is causing delays and affecting production. Contractors continue to look at more prefabricating in their shops instead of on the job site to help combat delays.
How we can help
CLA offers The 2019 Civil Construction Benchmark Report as a resource for professionals in the construction industry. It is intended to assist management by providing comparable data, industry trends, and other information to help them make strong financial decisions.
Analyzing key indicators can help contractors assess their financial health, operating efficiency, and profitability. Exploring the variance of results compared to similar organizations and investigating the reasons for the variance can ultimately be the first step toward creating efficiencies and improving profitability.
Download the full 2019 CLA Civil Construction Benchmark Report.