Use the Financial Analysis of the Industry 2023 to compare your business ratios and performance to the ratios of industry peers, pinpoint significant discrepancies, and find opportunities for improvement.
One of the business resources that NSCA members rely on most is our Financial Analysis of the Industry.
It serves as a continuously updated benchmarking report: a reliable way for integrators to compare their company’s financial information to other integrators that run the same type of business.
Earlier this year, we asked integrators across the country to participate in our Financial Analysis of the Industry survey. We then used those survey results and insights to create an updated Financial Analysis of the Industry 2023 report.
This year, the survey posed questions about:
- Company revenue (including RMR)
- Largest projects and customers
- New customer acquisition
- Numbers of full-time and part-time staff
- Overall financial health
- Prevalent systems and technologies
- Project backlog
- Project review processes
- Remote workforces
- Success in specific vertical markets
The report data provides integrators with an in-depth look at their own company operations and dynamics, as well as insight into how other integrators perceive the financial health of their companies. By comparing your business ratios and performance to the ratios of industry peers, you’ll be able to pinpoint significant discrepancies and find opportunities for improvement.
Feedback on 2024 Business Challenges
In addition to answering several specific questions about financial performance, we also asked integrators to share their uninhibited thoughts about 2024 business challenges. While the open-ended responses cover a wide spectrum of operational issues, three themes emerged—and none of them are surprising.
1. Staffing
This was the most frequently mentioned theme, whether in the form of struggling with hiring or retention. Overall, companies can’t find the staff they need to support business—or to sustain growth.
Verbatim comment example:
“Getting to all of our projects in a timely manner heavily depends on our labor force. Finding new people who are qualified, capable, and reliable is a huge challenge.
2. Supply Chain
Integrators continue to worry about the inability to get products in a timely manner or in time for job completion. Pricing and ordering ahead result in eroded margins and cash-flow issues for some.
Verbatim comment example:
“Continued constraints in the supply chain of critical pieces is adversely impacting our ability to complete jobs and meet customer expectations. Extra labor is being expended to complete jobs in segments or patch together temporary solutions.”
3. Uncertain Economy
Inflation and volatility are causing turmoil, whether that’s in the form of clients pushing out projects for another fiscal year or eroding margins.
Verbatim comment example:
“Recession and the effect of higher lending rates tightening lending standards will have on capital spending within the SMB segment.”
Tips to Leverage the Financial Analysis of the Industry
We recommend that your leadership team take time to review the updated findings outlined in this report. It’s an opportunity to find areas of improvement, confirm that you’re on the right path, and create KPIs and strategic imperatives.
You can plug the benchmarks and metrics from NSCA’s Financial Analysis of the Industry, Labor Installation Standard, and Compensation & Benefits Report in to your financial software tools to make sure your projects are profitable. NSCA’s Project Simulation Tool is another tool to determine project profitability.
As you review the Financial Analysis of the Industry, be sure to reference NSCA’s standard chart of accounts in our Essentials Online Library. This was developed specifically for integrators and is a great tool to help you determine what’s above and below the line for projects.
When it comes to next steps, NSCA staff are here to assist as you work through the report and other NSCA business resources. For guidance and a deeper dive into NSCA benchmarks and metrics, don’t hesitate to contact us.
And be sure to watch this on-demand webinar, where we help you understand key trends and allow you to fully leverage this tool to improve your business.
Additional NSCA resources:
Standard Chart of Accounts spreadsheet
Standard Chart of Accounts whitepaper
Financial Analysis of the Industry
Labor Installation Standard
Compensation & Benefits Report
Project Simulation Tool
