Georgia Tech Procurement Assistance Center

  • Home
  • About Us
  • Training
    • Class Registration
    • On-demand Training
    • GTPAC COVID-19 Resource Page
    • Cybersecurity
    • Veterans Verification Video
    • GTPAC Community
    • Other Training Audio & Video
  • Useful Links
  • Team Directory
    • Albany Counselor
    • Atlanta Counselors
    • Augusta Counselor
    • Carrollton Counselor
    • Columbus Counselor
    • Gainesville Counselor
    • Savannah Counselor
    • Warner Robins Counselor
  • Directions
    • Atlanta – Training Facility
    • Atlanta – Office
    • Albany
    • Augusta
    • Carrollton
    • Columbus
    • Gainesville
    • Savannah
    • Warner Robins
  • COVID-19
  • New Client Application
  • Contact Us

Government cuts cause contractor revenue losses and strategic changes

December 30, 2013 By ei2admin

Sequestration forced revenue losses among almost two-thirds of contractors in 2013, according to a survey by two consulting firms released last week.

Almost 31 percent of the 220 firms that responded to the survey by Market Connections Inc. and Lohfeld Consulting Group Inc. said their revenue fell by more than 10 percent, while another 30 percent reported declines of nearly 10 percent.

In response to government market pressures, contractors are re-architecting by expanding into adjacent markets (45 percent), modifying lines of business (35 percent), and putting greater emphasis on the front-end of the life-cycle to improve capture strategies an

More contractors are pursuing new opportunities in state and local government, international markets, and energy in 2013 than in 2012. Pursuit of healthcare opportunities is still high on the list of new and adjacent markets contractors are pursuing:

  • State and local government: 48 percent in 2013 vs. 29 percent in 2012
  • Healthcare: 39 percent in 2013 vs. 38 percent in 2012
  • International markets: 36 percent in 2013 vs. 29 percent in 2012
  • Energy: 33 percent in 2013 vs. 20 percent in 2012

“It is clear that sequestration and the government shutdown have had a tremendous impact on the government contracting community,” said Lisa Dezzutti, president and CEO of Market Connections, Inc. “Contractors need to think outside the box, leverage their expertise in adjacent markets and focus on business development and capture strategies that will increase win rates.”

Contractors are making the following investments in the front-end of the lifecycle to enhance the business development and capture process and increase win probability:

  • Improving capture and proposal processes: 40 percent
  • Adding more business development/capture personnel: 39 percent
  • Enhancing capture and proposal tools and infrastructure: 28 percent
  • Increasing use of consulting services: 19 percent
  • Adding more technical personnel to support business acquisition: 15 percent
  • Adding personnel to write proposals: 12 percent

A full copy of the survey results can be downloaded at: http://www.marketconnectionsinc.com/index.php/Infographics/sequestrationgovernmentshutdowninfographics.html?Itemid= 

Filed Under: Contracting News Tagged With: budget cuts, business development, market research, marketing, sequestration, state & local government

Recent Posts

  • Georgia Tech creates new Office of Corporate Engagement
  • Federal contractor indicted for stealing over $1.2 million from the U.S. Postal Service
  • SBA hosting “Contract Bonds and Surety Bond Guarantee” webinar April 20th
  • GSA hosting “Getting on the GSA Schedule” webinar April 13th
  • NIH hosting 2021 small business program conference April 26-30th

Popular Topics

8(a) abuse Army bid protest budget budget cuts certification construction contract awards contracting opportunities cybersecurity DoD DOJ False Claims Act FAR federal contracting federal contracts fraud GAO Georgia Tech government contracting government contract training government trends GSA GSA Schedule GTPAC HUBZone innovation IT Justice Dept. marketing NDAA OMB SBA SDVOSB set-aside small business small business goals spending subcontracting technology VA veteran owned business VOSB wosb

Contracting News

Federal contractor indicted for stealing over $1.2 million from the U.S. Postal Service

CMMC announces new advisory council to collect industry feedback

EEOC announces April 26 opening date for the collection of 2019 and 2020 EEO-1 component 1 data

Contractors line up to rebuild MARTA’s Five Points Station

GDOT announces $828.8 million in projects to transform Ga. 316

Read More

Contracting Tips

A whole new marketplace: GSA’s “commercial platforms” initiative

CRS Reports: Mentor-Protégé programs and small business size standards

CRS Report: Small businesses and COVID-19, relief and assistance resources

How do I find out what the government is buying?

Past performance isn’t always a required evaluation factor, says GAO

Read More

GTPAC News

SBA hosting “Contract Bonds and Surety Bond Guarantee” webinar April 20th

GSA hosting “Getting on the GSA Schedule” webinar April 13th

NIH hosting 2021 small business program conference April 26-30th

Defense Counterintelligence and Security Agency hosting industry day and matchmaking May 6th and 20th

Missile Defense Agency hosting virtual conference May 11-13th

Read More

Georgia Tech News

Georgia Tech creates new Office of Corporate Engagement

Delta Jacket wins 2021 Georgia Tech InVenture prize

Future of 5G is under the microscope at Georgia incubator

Collective worm and robot “blobs” protect individuals, swarm together

The Partnership for Inclusive Innovation is now accepting applications for pilot programs

Read More

  • SAM.gov registration is free, and help with SAM is free, too
APTAC RSS Twitter GTPAC - 30th Year of Service

Copyright © 2021 · Georgia Tech - Enterprise Innovation Institute