NSCA Releases Report Spotlighting Financial Health of the Industry
Nov 27, 2007 12:00 PM
Business owners know competition is a fact of life. A “keeping up with the Joneses” mentality can be a useful strategy to measure yourself against others in your field. But knowing exactly what the “Joneses” are up to is key. That’s where NSCA can help.
Each year, NSCA conducts research to zero in on industry financial ratios. The recently released “2007 Financial Analysis of the Industry” focuses on three main areas of interest: company background, balance sheet and summary information, and sales ratios.
“The analysis is a proactive yardstick to help measure your bottom line against other like-size companies in the industry,” says senior director of member services Jodi Montgomery. “It provides information on what the most profitable companies are doing. In addition, the analysis outlines the technologies, vertical markets, and sales methods that contribute to their profitability.”
Company sizes were split into five different ranges—beginning with companies who earned less than $1 million a year up to one in 10 reporting gross revenues of more than $20 million. Companies that took part in the research were measured against the “best of the best;” those with the highest gross profit and those who had the highest income before taxes. A top 10 category is also included.
To further detail ratios, the study examines a company’s age, U.S. region, primary sales methods, primary technological/systems focus and primary vertical markets. A few findings include:
- The singular most popular technology continues to be audio-visual presentation.
- Negotiated/direct sales account for 62.8 percent of company revenues.
- Corporate and educational markets topped all other vertical markets for total company revenue.
- A typical company has 30 full-time employees.
- Salaries were highest in the north central part of the United States.
To learn more financial information about the commercial electronic systems industry, corporate members may download the full report at: www.nsca.org/fai.