2016 Benchmarking Report Reveals Favorable Forecast for Contractors
Published on by Dan Holthaus in Firm News
In the spring of 2016, Barnes Dennig and USI surveyed local contractors about salary, benefits and other benchmarking data in our 2016 Contractor’s Compensation & Benefits Benchmarking Study, releasing the findings in a roundtable discussion at the Cintas Center. During the discussion, we reported continued growth for the national, regional, and local construction industry, with an elevated focus on succession planning and attracting and retaining talent across the industry.
Continued Industry Growth
The Architecture Billing Index scored Architecture Firm billings from March 2015 to March 2016 at 51.9, with an index score of greater than 50 denoting an increase in billings, and less than 50 denoting a decrease. The Midwest of the United States was scored at 49.8 in March 2016. The index has been above 50 ten of the previous 12 months. The residential sector has seen the sharpest upswing during this period showing an index of 55.7. This is indicative of the continuous growth seen over the past year and provides a positive outlook moving into the busy summer construction season.
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Key Benchmarking Report Findings
In our findings, the compensation of local clients participating in the benchmarking study is also representative of the growth. CFO compensation grew 5.4% and 1.06% for General Contractors and Specialty Contractors respectively. Controller compensation increased 9.4% and 8.29% in these fields. CEO/President base salaries decreased, however we believe this may be misleading, as it does not incorporate dividends and bonuses. With succession planning in the construction industry becoming an increasingly discussed topic, some of this compensation may be shifting in order to retain top executive employees who will be essential in the ownership transition process.
The top concern coming out of the survey was finding and retaining skilled workers. This was a sentiment echoed from the 2014 study. During this ongoing period of revenue growth, the demand for skilled labor will continue to rise along with it. Contractors will need to continue to focus on how to attract, retain, and motivate their workforce to keep pace with the opportunity.
Contact Us
If you are interested in the 2016 Contractor’s Compensation & Benefits Benchmarking Study, you can request access to the recording of the seminar, the presentation slides, and a copy of the benchmarking study by clicking here. If you wish to speak with a Barnes Dennig Construction team member as to how these findings may impact your business, have us reach out to you by clicking here.
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