The 2017 CFO Spotlight Survey attracted respondents from a number of industries in Phoenix and Tucson. We will highlight the construction segment here in terms of growth, risk factors, strengths and trends.
Respondents in the construction industry came primarily from general contractor and specialty contractor businesses. Locations were evenly spread between Tucson and Phoenix. Half of respondents reported plans to raise rates in the coming year while 31% plan to maintain rates and 19% plan to reduce rates. Construction industry CFOs are concerned about increased competition, the availability of skilled talent, and economic stability. To attract talent, they continue to rely on benefits such as health insurance, additional compensation and bonuses, and continuing education. More than 62% have invested in new hardware and software to improve cybersecurity and 69% have updated their security protocols. [infogram id="2017_arizona_cfo_spotlight_survey_respondents_in_construction" prefix="y0w" format="interactive" title="2017 Arizona CFO Spotlight Survey Respondents in Construction"/] To offset health care coverage costs, more than 64% have implemented preventative and wellness programs. Just over 21% of respondents are self-insured. Health insurance remains the top benefit to attract talent, with compensation in second place, and retirement benefits and training tied for third place. This industry is counting on millennials to enter the trades and help companies transition leadership, with 69% anticipating owner retirement or transition. They are investing heavily in on-the-job training to support recruitment.
AVERAGE SIZE: 135 employees AVERAGE REVENUE: $53 million
CFO Says: “[I have] developed flexible budgeting and cost control to match revenue spikes.”
Revenue in 2017
Will increase significantly: 12.5%
Will increase slightly: 50%
Optimism? 62.5% somewhat optimistic Access to Cash? Not a problem Border Security? Somewhat concerned Environmental Issues? Not a problem Millennials? Hot!
Top Areas of Focus:
Attracting and Retaining Talent
Acquisitions and New Branches
Reorganize/Diversify Revenue Streams
Better Forecasting Metrics
CFOs and leaders in the construction industry believe that the biggest risk to their reputations by a large margin is not being able to attract the right talent.
Eric Majchrzak is a shareholder and chief strategy officer of BeachFleischman PC.