Government Contractors, Agencies Focusing on Growth and Efficiency in 2018-19

Posted by Nick Schiffler on August 10, 2018

The Market Analysis team at GovWin+Onvia recently published the results of two unique surveys of government contractors and procurement professionals for 2018. Each of the two reports draws from surveys of hundreds of marketplace experts, with agencies and businesses surveyed from across a broad range of geography, size and industry focus.

Here are a few highlights taken from those two surveys that provide a snapshot of how both agencies and contractors are currently viewing the government contracting market.

Contractors Expect a Stable, Flat Market for 2018-19

The majority of government contractors surveyed – 61.1% - expect to grow government sales in the next 12 months. Those surveyed often would indicate that their growth was expected to be limited, however, leaving comments such as “There is substantial demand, but it’s tempered by spending uncertainty,” and “We hope there is more money that can be spent.”

SLED Agencies Expecting Spending Stability and Growth

State, local, and education (SLED) government buyers are continuing to see stability in agency spending, with more than 92% of those surveyed expecting higher or the same amount of spending in the next 12 months.

agency spending expectations on government contracts

This coincides with a greater opportunity for sellers, said David J. Akers, President and CEO of Sourcing Alliance. “One key takeaway for us is that middle market companies are increasingly migrating away from the pursuit of SLED business,” said Akers. “That is both a concern (for buyers) and a strategic opportunity (for sellers) over the long term.”

Procurement Staff Feel Increasingly Overworked

As agencies continue to pursue greater efficiency, they are encountering difficulties in finding enough quality bidders on their projects. This is often made even more difficult due to inadequate staffing, GovWin+Onvia research has found. A full 42% of procurement professionals reported that their staff members feel overworked and/or are having to pick up extra hours.

Businesses Focusing More on Government Sales Strategies

The Survey of Contractor Sales Expectations found that more businesses are focusing on government sales in order to be competitive. Many of those surveyed are focusing on more sophisticated public sector sales and marketing strategies, leaving comments such as “We are going after opportunities more strategically, and are putting a strategic plan in place” and “…we are getting smarter and using all the tools in our tool box.”

For those firms planning to increase their focus on selling to the government, having a comprehensive strategy is crucial to being able to win more public sector bids and RFPs. The in-depth research into the government market offered by GovWin+Onvia offers critical insights that can help business leaders to develop their sales and marketing strategies.

“GovWin+Onvia’s in-depth research reports are golden, providing key insights into the SLED world of government purchasing (from the buyer’s perspective) and sales (from the contractor perspective). The Procurement Performance Index, which addresses three critical buyer drivers, and the Government Contractor Confidence Index enable our organization, a group purchasing cooperative targeting the middle market, to understand industry trends and validate our business model.”

- David J. Akers, President and CEO of Sourcing Alliance

Business development representatives, executives, sales, and marketing professionals interested in gaining key insights into the government purchasing marketplace for the next 12 months can take advantage by downloading one of GovWin+Onvia’s recent free survey reports by clicking on the links below. Don’t miss out on the 2018 editions of the Survey of Government Contractor Sales Expectations and the Survey of Government Procurement Professionals.

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