Construction Survey Reveals Key Industry Indicators

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28th January 2014 15:59 - Construction

The Construction Financial Management Association (CFMA) has recently announced the release of the 2013 financial data results. This year, the findings revealed that a trend established in 2008 has been broken: Where the primary source of competition had been existing contractors pursuing growth, the largest source of competition reported in 2013 is foreign contractors (26%), followed by other union traders (22%), and open shop competition (16%).

Further to the findings about the primary source of competition, it was reported that contract backlog decreased four percent from $87.1 million in 2012 to $83.6 million in 2013. While this shows a backstep from the prior years, it is still higher than the five-year average of $74.3 million, which included backlog lows of $48.3 million in 2009 and $52.1 million in 2010.

The findings also show that profitability for construction companies continued a downturn from previous years, but at a reduced rate. In 2013, the average Return on Assets was 5%, a decrease from 5.5% in 2012 and 11.1% in 2011. Return on Equity averaged 14.2%, a decrease from 15.2% in 2012 and 33.3% in 2011.

Stuart Binstock, President and CEO of CFMA, said:

"The survey shows important industry trends and historical data, and  using the Benchmarker gives companies important insight into how their Key Performance Indicators compare to others in the industry and where to adjust their performance accordingly."

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