Construction

Atlanta business owners have several responsibilities to focus on, from directing the management team to supporting employees and maintaining focus on the strategic objectives and growth goals of the organization. It’s clear to see time is precious, and when not used properly, it can be a precious resource that is wasted. That’s why a difficult relationship with the company’s financial statement auditor can be so challenging. A relationship that is characterized by poor communication, missed deadlines and an inflexible approach may be signs that a change is needed. While there are certainly challenges in every relationship, business owners need to candidly evaluate their relationship to determine if a change is needed.

The construction industry was dealt a difficult hand when the new revenue recognition standard was first introduced in 2014. As contract-based businesses, they had to take a close look at almost all their revenues streams and challenge some long-held assumptions in order to comply with the new accounting standard. Since many construction contracts span multiple reporting years, the process was especially daunting. Now that the revenue recognition standard is in effect, we wanted to take a step back and see how construction companies have been faring under this new accounting system.

Construction companies in Atlanta and across Georgia struggled in 2018 to manage workforce shortages. Almost three months into 2019 it is apparent this challenge has not weakened the demand or appetite to pursue growth opportunities. According to the 2019 Sage Construction Hiring and Business Outlook Survey, 77% of national survey participants are expected to increase their headcount, while 88% of Georgia survey participants are expected to do the same.

The construction industry is facing a period of rapid growth. The increase in the number of new projects in residential, commercial, roads, infrastructure and renewable energy has created opportunities for industry companies. The Bureau of Labor & Statistics recently reported that they expect construction to be one of the fastest growing industries with a 4.5% annual growth rate. While this is certainly encouraging news for industry companies including contractors and sub-contractors, it does present an interesting challenge.

Technology has had an impact on virtually every aspect of life from the checkout counter at the local grocery store, to how new keys are cut at the hardware store to how passengers check in for flights at the airport. The American landscape is littered with changes brought about by technology.