January 23, 2006—Contractors are poised to grow their businesses, but only one in five actually plans to take the steps needed to achieve that growth. according to the third annual Intuit Construction Business Solutions industry study, conducted to understand the construction industry’s current state and outlook on growth.
Contractors surveyed projected they would grow their revenue nearly 13 percent in the next three years, citing several initiatives they felt were most critical to the growth of their firms. Adding more jobs topped the list (71 percent), followed closely by increased networking and word of mouth (63 percent) and hiring additional qualified field employees (54 percent).
Yet despite this awareness, contractors did not overwhelmingly indicate they would act upon those growth tactics. For example, only 16 percent of respondents reported adding more jobs as most important for growth said they would actually do so in the upcoming year, the survey found.
Conducted for Intuit by independent research firm Decipher, the study surveyed more than 500 contractors ranging in size from companies just starting out to century-old industry bellwethers in the United States.
The pool of qualified field employees clearly is the largest barrier to growth. Twenty-seven percent of contractors reported difficulty in finding experienced staff to work on the job site in the past year. Contractors are also struggling in the back office. Twenty-nine percent of respondents recognized they needed help managing multiple jobs better—tracking change orders and schedules—while 26 percent identified the lack of integration between their software systems as their greatest business management challenge. However, 38 percent of small companies—those with less than $3 million in revenue— reported their difficulties in making sure bills were paid and customers were submitting payments.
Intuit offers general contractors and subcontractors of all types and sizes a range of solutions, from QuickBooks products to its most advanced construction business management software, Intuit Master Builder. For more on the company, visit its Web site.
