Profitability Trends

When you are looking at your scoreboard, remember that industry average benchmarks and single points in time only tell part of the story.

D. Brown Management Profile Picture
Share

When you are looking at your scoreboard, remember that industry average benchmarks and single points in time only tell part of the story.

Scoreboard: Invoice and Graph representing Company Profitability and Trends.

Just like physical training, what really matters for your personal health is that you are consistently improving.

  • Graph your key metrics over the last five years and look for relationships.
      
  • Analyze your data and look for outliers to help the trends make more sense. For example, did you have one super good or bad job in a year that completely skewed the metrics?

  • Be cautious not to over-rationalize “outliers.” If you have a bad job every year, remember that is more likely to be part of the trend rather than due to an outlier. For example, Motorola had something like 24 consecutive quarters of “one-time” expenses. If they occur that consistently, they are regular expenses and not one-time expenses. Also, Motorola is no longer around. 
     
  • What do those metric trends look like if you project them another 2-3 years into the future?

  • Which metrics are trending in the right direction?  

  • Which metrics can you improve?  How?  


Want to talk about it? Contact us for a conversation.




Project Delivery - CM Agency or Multi-Prime
Project Owners can minimize the markups for overhead and profit by contracting directly with the specialty contractors and hiring a Construction Management (CM) firm to work as their agent. This project delivery method is called CM Agency or Multi-Prime.
Retirement Onboarding - The Ideal Lifestyle for the Retiring Contractor
Work-life balance has probably mostly been work. Now is the time to see that work-life balance is really all about life.
Construction Benchmarks, Trends, Forecasts, and Predictions
Two of the most highly leveraged choices that leaders of contractors make are about market strategy and major resource allocations. Robust information systems about the external market are a critical part of this decision-making process.