NSCA has just released an updated Financial Analysis of the Industry report for 2018, providing information that systems integrators can use to benchmark and compare expenses, profits, sales and other data against industry peers of similar size and business focus.
The Financial Analysis of the Industry details the industry’s performance based on data collected from 100+ integration firms that participated in the 2018 Cost of Doing Business survey earlier this year.
“This report offers a few interesting insights that we weren’t expecting,” says Chuck Wilson, NSCA executive director. “First, the industry is experiencing an increase in backlog, indicating that there’s plenty of work available. Profits are also up from the last report. Surprisingly, however, RMR revenue hasn’t increased. Many integrators are still struggling to get their managed services programs off the ground. In those cases, we encourage integrators to attend our upcoming Pivot to Profit event in Atlanta in October, which explains how to smoothly transition into this new opex world, where everything imaginable is ‘as a service.'”
The information in the Financial Analysis of the Industry provides an in-depth look at integrator operations and dynamics, and helps NSCA members better understand the financial health of their own companies (and their firm’s performance compared to others). The report also includes verbatim responses about the biggest challenges integrators anticipate in future years.
Many NSCA members report that they’re able to identify cost-cutting opportunities through the Financial Analysis of the Industry. “Early on in my position as vice president of Sound Image’s integration division, I needed to conduct a financial analysis of our division as a key component of my business plan,” says Larry Italia, former vice president of Sound Image’s integration division. “I had our numbers, but needed some benchmarks for comparison to see where we sat in respect to fellow integrators. The Financial Analysis of the Industry was an invaluable resource for me. It was comprehensive; virtually any metric I wanted to benchmark was there (e.g. headcount, revenue per employee, bid vs. design-build, etc.). In particular, the financial data (SG&A, balance sheets, etc.) was an important tool for me.”
The NSCA Financial Analysis of the Industry is free for Gold and Platinum NSCA members. Members who completed the Cost of Doing Business survey receive a customized copy of this report with additional valuable information and insight exclusively for their organizations.
The report can be purchased by non-members for $399, or non-members can become NSCA members for only $595 and receive the report as part of their membership, which offers access to discounted education and training opportunities, updates on regional and national government affairs issues, free monthly industry webinars, business tools and resources and other exclusive industry research.
The Financial Analysis of the Industry can be ordered here.