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TMCNet:  Federal Contractors Split on Whether Sequestration Will Actually Happen According to Market Connections

[December 12, 2012]

Federal Contractors Split on Whether Sequestration Will Actually Happen According to Market Connections

Chantilly, VA, Dec 12, 2012 ( via COMTEX) -- With the sequestration deadline looming, government contractors are split on whether the pending sequestration budget cuts will occur. According to a recent poll by Market Connections, Inc., a leading government market research firm, 36% of government contractors believe sequestration is unlikely to happen, while 34% believe the budget cuts are somewhat likely. Meanwhile, a quarter of contractors believe sequestration is very likely to occur, with 5% believing it won't happen at all.

When asked how they are preparing for sequestration, nearly half (46%) of contractors said that they doing nothing until the budget issue is resolved, while just over a quarter are cutting costs and reducing overhead. In addition, 15% of survey participants said they are decreasing their investment in the federal market, instead developing strategies and opportunities in other markets.

"The large proportion of contractors reporting they are adopting a 'wait and see' strategy clearly signals how much uncertainty this issue is causing in the marketplace," said Lisa Dezzutti, president and CEO of Market Connections. "Whether or not sequestration occurs, the contracting industry and government agencies are facing the possibility of unprecedented austerity measures that could change the way we do business. Both the government and its suppliers need to be prepared to operate in a new reality." The online poll, taken by over 100 government contractors during November, showed that those contractors seeking opportunities in adjacent markets are focusing on health (38%), state and local government (29%), international markets (29%) and energy (20%). Respondents also cited the top five areas of opportunity over the next 12 months as healthcare IT (41%), mobile workforce (36%), cloud computing (34%), big data/data analytics (31%) and cyber security (29%).

About Market Connections Market Connections delivers actionable intelligence and insights that enable improved business performance and positioning for leading business, government agencies and trade associations. The custom market research firm is a sought-after authority on preferences, perceptions and trends among government executives and the contractors who serve them, offering deep domain expertise in information technology and telecommunications; healthcare; and education. Market Connections also provides the tools for organizations to expand thought-leadership in their respective markets, and is known for its annual Federal Media and Marketing Study, the only comprehensive survey of the media habits of federal decision-makers, as well as the Public Sector Social Media Study and the Government Contractor Study.

POLL RESULTS How likely is it that you think sequestration will occur Somewhat unlikely 36% Somewhat likely 34% Very likely 25% Very unlikely 5% Which statement best describes your firm's response to the threat of sequestration Waiting to see 46% Doubling down by cutting costs 26% Moving away from the federal market 15% Other 12% What, if any, new or adjacent markets are you pursuing in light of pending budget cuts in the federal market Health 38% State and local government 29% International markets 29% Energy 20% Associations and non-profits 15% Finance 11% Other (please specify) 16% Please select the top five areas of opportunity for your business over the next 12 months.

Healthcare IT 41.00% Mobile workforce 36.00 % Cloud computing 34.00 % Big Data/data analytics 31.00 % Cyber security 29.00 % Information sharing 24.00 % Legacy system modernization 22.00 % Training and simulation 19.00 % Continuity of operations 18.00 % Enterprise architecture 16.00 % Interoperable capabilities15.00 % Network-centric warfare 13.00% Open data/open government 11.00% Going green initiatives 10.00% ERP and logistics 9.00% Surveillance IT 5.00% Other (please specify) 20.00% ### Read the full story at

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