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Media Contact
Melinda Hart
Fringe Benefit Group
(210) 824-3433
melinda@melindahartpr.com
| Government Marketing Monthly Update - Jan 2010 |
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Industry Updates We’ve only seen the tip of the iceberg. That was the consensus during a recent webinar sponsored by Onvia, the Associated General Contractors of America, and the American Institute of Architects. Here are a few highlights from 2010: The Next Economy – Government Market Outlook: Jobs for Main Street Statistics were presented which indicate the government market will continue to grow for at least the short-term. The Jobs for Main Street Act, introduced in late 2009, builds on ARRA initiatives and is partially funded by savings from the Troubled Asset Relief Program (TARP). The House version of the bill includes significant appropriations for infrastructure projects, with the majority dedicated to transportation. Billions of dollars are also targeted for school renovations, as well as the energy, healthcare and energy sectors. The emphasis in the House version of the bill is on spending allocated funds quickly. States will lose 50 percent of any funds which are not under contract within 90 days of being apportioned. Priority has also been placed on projects which can be completed within a 3-year time frame. Impact of Stimulus Funds in 2010 The majority of spending on ARRA-funded projects will actually occur in 2010. Only about 27% of projects created by the American Recovery and Reinvestment Act - about 9500 - had actually been awarded to contractors by the end of 2009. That means there are still over 25,000 projects which are fully or partially funded by stimulus funds which will begin in 2010. Competition Means Lower Profit Margins – Making Bona Fide Benefit Plans More Important than Ever One of the points made in the webinar is that more and more businesses are turning to the government as a revenue source, both experienced contractors and those new to the market. This increased level of competition caused profit margins to decline throughout December of 2009. Government contractors will be looking for ways to widen their profit margins – a terrific opportunity for us to tell our story! To download a white paper which contains many of the points covered in the webinar, click here. You can also download and view the webinar at onvia.com. Manning & Napier Continues Winning Streak The Manning & Napier Pro-Blend Maximum Term fund, one of the Lifestyle investment choices in The Contractors Plan’s Transamerica investment platform, is the only U.S. stock fund to beat the Standard & Poor’s 500-stock index for the 11th year in a row. Manning & Napier Pro-Blend Maximum Term fund boasted a 36.1% return in 2009 - impressive in any market -- but especially so in light of the turmoil the market has seen in the past year. This fund, with a recent $553 million in assets, is the most aggressive of the lifestyle funds for investors of varying risk tolerance. It ranks among the top 15% of peers in Morningstar, Inc.’s large-blend category for 2009 and in the top 5% for the past five and ten years. This is a powerful story to tell your clients and prospects. The Contractors Plan only partners with the best – and Manning & Napier has proven their value over and over again. Their disciplined team approach to stock picking and diligent analysis of market opportunities clearly works. You can read about the Manning & Napier Pro-Blend Maximum Term fund’s track record on the Wall Street Journal’s website. Please Destroy Benefit Information Request Forms Recently we’ve gotten a few Benefit Request Forms from participants seeking distributions. This is an outdated form and doesn’t work with our upgraded system. The best way for participants to get a distribution is to go online, print a distribution package, complete the information and send it in to Plan Benefit Services. Employers can also do this for their employees. What’s New at Fringe Benefit Group We are working on a Sell Sheet which outlines our online enrollment capabilities. We have the ability to set up customized online enrollment portals for large contractors, which makes selecting and enrolling for benefits much easier for both employers and their workers. Generally this can be set up within 30 days. We’ve also compiled a FAQ based on questions that came in during our recent national webinar for the ABC. You can find the FAQ on our website and can also request print versions from our office. While there were some rather technical questions asked, the majority of questions covered fairly basic points. Several questions were asked regarding what can and cannot be counted toward the fringe, which hours must be paid at the prevailing wage rate, the bidding process, and retirement plans. Contractors who have never bid on government-funded jobs are doing so for the first time, which means there’s a lot of education to be done and a lot of opportunity for us! These contractors need our assistance to help them be competitive and stay compliant. Trade Show Schedule ASA American Subcontractors Association Business Forum 2010 (Presenting) AGC Annual Convention Benefits Selling Expo 2010 We sincerely thank you for partnering with us and we appreciate your business. If you have ideas or suggestions for how we can help you be more successful, please let us know.
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