Logistics, Engineering & Operations
Contractors providing logistics capabilities, engineering services and operations support face a dynamic and challenging market. The new millennium has seen expanded reliance on contractors for a wide range of services performed domestically and abroad, with the government looking for nimble responses to unforeseen events (e.g., domestic and international relief operations, overseas military deployments, innovative construction and management partnerships) as well as ever-increasing efficiency in routine operations at established facilities. These trends, which often create conflicting demands for contractors, have simultaneously made the federal customer more attractive—and more challenging—to serve.
KEY MARKET TRENDS AND DEVELOPMENTS:
- Competition is increasing. As traditional contractors extend from their core business in the logistics, engineering or operations sectors into adjacencies in one of the other areas, and as overseas or traditionally commercial players move into the US government market, the competitive landscape has become increasingly crowded.
- Customers are shifting risk onto contractors. The Federal Government’s efforts to shift more risk onto service providers through contract mechanisms such as Firm Fixed Price and Early Contractor Involvement have placed greater downward pressures on delivery and financial performance for contractors.
- Firms are under pressure to adapt service offering to changing market dynamics. New technological approaches (e.g., BIM, LEED, Total Asset Visibility) are advancing rapidly from cutting edge offerings to core requirements.
The key challenge for companies in this sector is the profitable pursuit of growth. First, this means choosing the best avenues for growth considering firm capabilities and services, market dynamics, customer requirements, competitive intensity, and economics. Second, it requires the development of a sound growth strategy. Finally, strategy implementation—whether through organic efforts, acquisition, or partnership—must be planned and executed in a manner that anticipates change and risk in the market and corrects course dynamically to ensure sustained success.
AVASCENT'S EXPERIENCE SERVING THE LOGISTICS, ENGINEERING & OPERATIONS SECTORS
Avascent is well positioned to offer sound strategy, marketing, business development, and investment advice to clients operating in or seeking to expand into the government logistics, engineering and operations sector. Avascent understands the detail and nuance unique to these markets, as well as the many service, customer, and competitive factors that drive opportunities across the sector. Our industry expertise, along with a deep commitment to our clients’ success, enables us to provide pragmatic and timely solutions to the most pressing strategic business challenges.
Avascent’s team has extensive experience serving clients that provide the full range of logistics and operations services, including transportation, MRO, facilities and base operations, contingency and emergency response services, and design and construction firms. Through independent, rigorous market validation, competitive assessments, opportunity identification and prioritization, and market and competitive risk assessments, our seasoned consultants support current players as well as companies seeking adjacent market growth in this dynamic sector.
For more information about how The Avascent Group might be able to help your organization, please contact us today.