Revenues, profits trending downward for many govcon firms
Government contractors are making less revenue and profits largely due to unnecessary and costly compliance requirements, according to a recent survey by the accounting firm Grant Thornton.
Thirty-seven percent of the 2015 Government Contractor Survey’s participants reported lower revenues than in the previous year. While this still is not as great as the number of respondents who said their revenues grew over the last year (42 percent), Grant Thornton noted that the 37 percent is a much higher number than is normally reported.
On a similar note, 52 percent of respondents reported either no profit or low profit in the range of 1 percent to 5 percent of total revenue.