The 2018 CLA Construction Benchmark Report Tracks Trends
Tariffs, technology, and tax reform are some of the key issues that contractors face today. Construction business leaders who understand how these and other industry trends affect their companies will be better positioned to create opportunities in the future.
The 2018 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 700 construction companies with operations throughout the United States. Drawing on data from their financial information, this report provides 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.
- Tax reform presents opportunities for contractors to re-evaluate their organization structure, capitalize on incentives for re-investment in their business, and make updates to their employee reward programs.
- 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