Michael Kapics, CPA, CCIFP, and Construction Industry Group Leader for HBK CPAs & Consultants, would like to share the following article written by Kyle Melewski, CPA, which highlights several important recommendations illustrating why a benchmarking analysis is so advantageous for a construction company.
Why A Benchmarking Analysis is Key
Knowing where you stand in your marketplace and how your operational and revenue/growth performance compares to that of your associates vying for the same customers is key to remaining competitive. You want to know where you stand among your construction company peers and HBK CPAs & Consultants (HBK) can help you acquire this knowledge by performing a benchmarking analysis on your business.
What is a Benchmarking Analysis?
A benchmarking analysis is a specific type of market research that allows organizations to compare their existing performance against those of companies similar in scope and services. This enables construction company owners and operators to make improvements that complement their overall business approach and ultimately benefit the company's profitability. The main objectives of a benchmarking analysis are to determine what improvements are necessary and where they are applicable, to scrutinize how successful competitors achieve their high performance levels, and to use the data gathered to improve efficiencies, operations, and the overall performance of the construction company undergoing the benchmarking study.
How We Work with You
We compare your company and its performance to other companies of similar size, geographic region and scope of service. We evaluate your company's financial performance by comparing key performance indicators (KPIs) against those of your peer group, including: working capital, amount of backlog, return on equity and assets, and generated revenue. We help you determine the effectiveness of operational functions, such as billing, collection, labor force efficiency, and how you leverage debt. By drawing these comparisons, we are able to assess the overall productivity and profitability of your organization.
HBK serves more than 500 construction firms across the eastern U.S., consulting owners and operators on ways to improve top and bottom line performance. We use our knowledge and experience in benchmarking to provide our construction firm clients with a blueprint for improving their bottom line and support their efforts to grow, expand, and succeed in all aspects of business.
To learn more about obtaining a benchmarking analysis for your construction company, please contact Kyle Melewski at firstname.lastname@example.org or HBK Construction Group Industry leader Michael Kapics at MKapics@hbkcpa.com.