2012 Construction Industry IT & Financial Outlook

2012 Construction Industry IT & Financial Outlook

Sage Construction and Real Estate Solutions

• “Sneak Peek” 2011 CFMA Financial Survey Results:Erika Urbani, VP of Finance, R.D. Olson Construction, Irvine, CA, Vice-Chairman, CFMA• Sage Construction and Real Estate Customer IT Use Survey Results:Dennis Stejskal, VP Product Management, Sage CRE• Special offer from Sage Accountants Network•Q&A

“Sneak Peek” “Sneak Preview”

2011 CFMA Financial Survey Results

Erika UrbaniVP of Finance

R.D. Olson Construction Irvine, CA Vice-Chairman - CFMA

2011 CFMA Financial Survey Respondents by Contractor Type• 35% Industrial and Non-Residential• 17% Heavy Highway• 43% Specialty Trade• 5% Other

Key 2011 Survey Results

• Average net margin before taxes 3.2% compared with 3.5% in 2010

• Return on assets 7.4% compared with 9.0% in 2010• Return on Equity 20.0% compared with 26% in 2010

Balance Sheet Highlights and Financial Ratios

• Current Ratio 1.5 to 1 in 2011 compared with 1.4 to 1 in 2010

• Quick Ratio 1.3 to 1, the same as 2010• Debt to Equity 1.7 to 1, 1.8 in 2010

Income Statement Highlights

2011 Survey

300-page 2011 Survey available at www.CFMA.org includes:• 2012 industry projections by CFMA Chief Economic

Consultant Anirban Basu• Solutions from a tough-economy—Best Practices for moving

forward• Information on Cash Management, Bonding & Surety

Insurance• Segmented data by type of work, region and revenues• Benchmarking Builder CD

CFMA 2011 Financial SurveyAvailable at www.CFMA.org

Contact Fern Oram at [email protected]

Sage Construction and Real EstateCustomer IT Use Survey

Dennis StejskalSage Construction and Real Estate

VP of Product Management

Survey Responder Breakdown

How Will the Economy Impact Business in 2012?

View of Economy by Revenue

• The majority of companies (56%) plan to seek work within their geographic region in 2012.• 36% currently seek work

outside of their geographic region.

Where Will Companies Seek Work in 2012?

• 8% plan on going outside their region in 2012 for first time.

46% COMMERCIAL

What Are the Top Five Sectors That Will Demand the Most Construction Work in 2012?*

42% GOVERNMENT

36% HEALTH CARE

28% HIGHWAY

20% EDUCATION

*Responders could select more than one sector

What are the Key Actions Your Business Will Take in 2012?*

*Responders could select more than one action

57% IMPROVE

EFFICIENCIES

53% CUT

EXPENSES

26% DIVERSIFY INTO NEW MARKETS

25% AUTOMATE MANUAL

PROCESSES

What are the Key Issues Your Business Will Face in 2012?*

*Responders could select more than one issue

43%

Acquiring New Customers

43%

Cost of Materials

41%

Increased Competition

37%

Weak Demand

21%

Process Efficiency

Top Technologies You Will Use to Address Top Issues?*

*Responders could select more than one technology

35% Bidding/Estimating Software

29% Project Management Software

21% Mobile Technology

Emerging Technology Use by Revenue

Emerging Technology Use by Contractor Type

Size of IT Staff by Revenue

Technology Early Adopter or a Laggard by Company Type

Technology Early Adopter or a Laggard by Company Size

How Important is Mobile Technology?

Importance of Mobile Technology Use by Revenue

Importance of Mobile Technology Use by Contractor Type

How Will the Use of Smart Phones/PDAs, Laptops, Tablet PCs, and Netbooks Change in 2012?

Increase in SmartPhone/PDA Use by Revenue

Increase in SmartPhone/PDA Use by Contractor Type

37% Less than

$2M

33% $2M-$5M

36% $6M-$10M

32% $11M-$25M

46% $26M-$50M

38% More than

$51M

37% Commercial/

Industrial

27% Residential

32% Remodeler

33% Specialty

32% Heavy

Highway

Increase in Laptop Use by Revenue

27% Less than

$2M

18% $2M-$5M

22% $6M-$10M

11% $11M-$25M

24% $26M-$50M

28% More than

$51M

26% Commercial/

Industrial

20% Residential

39% Remodeler

10% Specialty

22% Heavy

Highway

Increase in Laptop Use by Contractor Type

Increase in Tablet PC Use by Revenue

Increase in Tablet PC Use by Contractor Type

11% Less than

$2M

11% $2M-$5M

27% $6M-$10M

21% $11M-$25M

27% $26M-$50M

54% More than

$51M

27% Commercial/

Industrial

21% Residential

26% Remodeler

21% Specialty

11% Heavy

Highway

How Familiar Are You With Cloud Computing?

11% Very Familiar

44% Somewhat Familiar

45% Not At All

What Level of Importance Will Cloud Computing Play in Your Business in 2012?

What Level of Importance Will Business Reporting Technology Play in Your Business in 2012?

Which Business Reporting Technology Benefits Will be the Most Important to Your Business in 2012?*

*Responders could select more than one benefit

81%Standardized reporting across company

36%Alerts when specific situations occur

34%Dashboard tracking across company

Benefits of Joining the Sage Accountants Networkfor Construction and Real Estate Solutions

Join the Construction and Real Estate (CRE) Sage Accountants Network and empower your clients to run their businesses more effectively and efficiently while you grow your accounting or bookkeeping practice.

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Offer Expires March 20, 2012

To take advantage of this great offer and learn more about the Sage Accountants Network, please call 866-565-2726 or email [email protected] and provide the campaigncode C-3296-0001.

QuestionsConnect Sage at: 800-628-6583

www.SageCRE.com

CFMA 2011 Financial SurveyAvailable at www.CFMA.org

Questions - Contact Fern Oram at [email protected]

2012 Construction Industry IT & Financial Outlook