Tariffs, labor, tax reform, and technology are all issues contractors face today. But even with the usual challenges, construction business leaders are finding opportunities to continue to grow — an impressive accomplishment.
The 2019 CLA Construction Benchmark Report can help you see where your company stands among similar organizations and use your financial information to make decisions. It summarizes data from 770 construction companies with operations throughout the United States. The report draws on data from their financial information to provide a brief summary of some key industry trends.
Construction industry trends
Several trends have emerged over the past few years that have a significant impact on construction companies.
- Tariff activity from the current administration has led to more volatility in supply prices, particularly from foreign suppliers. Cost forecasting will be increasingly difficult, and lumber and steel prices may change significantly after bids have gone out.
- Labor shortages continue. Finding qualified workers and project managers is challenging. The competition for people is pushing up wages and affecting profit.
- Tax reform continues to evolve and is providing both opportunities and challenges for contractors.
- Cybersecurity has become an everyday problem and can impact a company’s business for several days. Ongoing security and maintenance are imperative.
Financial ratios and key performance indicators
The report uses information obtained from our construction contractor clients in four sub-industries: civil contractors, general building, electrical and mechanical, and other specialty. It describes how financial ratios are used and looks at overall industry trends. The information can be used to compare your company’s ratios to averages across the industry and within your sub-industry. Understanding how your results fit with national trends can spark discussions on strategy, competition, and the future of your company.Download the Report