An annual Deltek study has found that 49 percent of government contractors reported rising government revenue in 2022 and more than 50 percent said they expect to see increasing sales in 2023 amid inflation, ongoing supply chain issues and other market challenges.
Deltek said Wednesday it surveyed more than 700 GovCon leaders for the 2023 Clarity Government Contracting Industry Study and found that 57 percent of respondents reported an increase in the overall number of their contracts with the federal government.
“This year, we found an optimistic outlook for increased government sales revenue and win rates in 2023, and the expectation to get back to, and possibly even exceed, pre-pandemic successes,” said Kevin Plexico, senior vice president of information solutions at Deltek.
Sixty-eight percent of GovCon officials surveyed said they consider cybersecurity as a top concern for their information technology teams.
According to the study, only 37 percent of small businesses reported rise in government contracts within the past year, compared with 58 percent of the largest enterprises.
The report showed that 37 percent of respondents said they see labor costs as the most significant factor affecting businesses in 2023.
“The challenges companies are facing primarily relate to the labor markets, including shrinking headcounts and wage inflation making it difficult to deliver the best value on contracts, along with ongoing obstacles presented by evolving compliance requirements,” noted Plexico, a 2023 Wash100 awardee.
In his recent piece for Executive Mosaic’s GovCon Expert program, Plexico analyzed the president’s fiscal year 2024 budget request and what it means for federal contractors. Click here to read the full article.