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Snapshot of Contracting Industry

Many small contractors are posting impressive gains in revenue, according to a survey by the software firm Deltek.

Nearly four out of 10 small contractors (with less than $20 million in annual revenue) said revenue grew by at least 20% during the year, with one in five reporting growth rates exceeding 50%. By contrast, one out of 10 large contractors (revenue above $100 million) reported negative growth.

Deltek’s non-scientific survey drew responses from 318 executives in companies of all sizes.

Other findings of the survey:

Nearly half of small and mid-sized firms reported profit margins of 4% or less. Margins were lower for the largest companies. For all the companies surveyed, margins averaged 4.1%, down from 7.3% in 2009.

Small companies, on average, derived more than one-third of their revenue from subcontracts.

Most small contractors submitted fewer than 25 proposals during the year, and none submitted more than 99.

Small and mid-sized firms reported average win rates of over 50%, up from roughly 40% in last year’s survey.


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