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Federal Market Intelligence for Small Business |
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Survey: Gov’t contractors see ‘slightly worse’ revenues aheadVendor confidence drops in comparison to 2017 surveyA recent survey of 337 government contractors showed an overall drop in their confidence for 2018-2019 sales and an expectation of “slightly worse” revenue in the next 18 months. The market “appears to be shifting gears and resetting expectations,” according to the Survey of Government Contractor Sales Expectations 2018-2019, produced by GovWin, Onvia and Deltek. “The survey results don’t indicate a downturn, but they do suggest that much of the bullish optimism of 2017 is gone, replaced with a more realistic or even cautious outlook,“ the report summary stated. The survey measures the Government Contractor Confidence Index, which is a numeric score based on answers to four questions. Scores approaching zero are the least bullish, while scores approaching 200 are the most bullish. The 2018-2019 confidence score was 133.6, which was lower than the 135.8 score for 2017-2018 and also lower than the 136.1 score for 2015-2016. In another finding, the contractors surveyed said they anticipate 3.1% growth in the next 12 months, vs. an expectation of 4.9% growth in the survey last year. The findings reflect greater spending uncertainty due to diminished expectations about agency spending, higher labor costs and more competition in the market. “This ‘slightly worse’ view for the broader contracting market is consistent with other evidence,” the report said. Only 52% of the contractors had a positive view of the US economy, down from 60% last year. More than 70% of the vendors were in the federal market. Many were in state and local markets as well. The survey was released in June 2018. More Information: Survey results report: https://bit.ly/2Ni7AaX
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