Highlights from the 2018 Financial Forum

News Description

Twenty nine Synergy members from 19 companies came together for the 2018 Financial Forum in Rosemont, Ill on June 6-8th. This year’s session included discussions on financial benchmarking and KPI’s, tax reform and R&D credits, purchasing and cost saving initiatives, insurance, and HR best practices.

Synergy’s Financial Benchmark

We kicked off the meeting with an update on Synergy’s Financial Benchmark which is being coordinated through a group of members (the Financial Think Tank) and FMI. The goals of the benchmark will be to spur conversation and identify best practices and trends. Attendees were able to see the benchmark template, share what they liked, and provide their feedback for things they’d like to see moving forward.

Top Three Things You’re Benchmarking

Members met in small groups to share their top KPI’s and then recapped the best idea from each table as a large group. Ted Christiansen (CSE) shared his company’s report that shows profitability of every account they have to help his team understand who their most profitable customers are. Neff Jenkins (Brooks Building Solutions) shared how they measure gross dollars per man hour. Other KPI’s that were shared included productivity per technician and per foreman on construction jobs,  profitability of groups and divisions, net profit/margin per technician, and repair pull throughs on PM’s.

Tax Reform and R&D Credits

In the afternoon of day one Tracy Lustyan (alliantgroup) shared the activities that would qualify for R&D credits for mechanical contractors and answered questions from the members. Synergy members have saved $29 million in tax credits through alliantgroup. Members who have partnered with alliantgroup shared their experience with the process.

If You Were in a Room with 30 Peers…

Before coming to Rosemont, members answered the question, “If I was sitting in a room with 30 of my peers, what would I ask them?” Here are some of the questions that members answered at the Financial Forum:

  1. What was the best concept that has moved the needle positively in the past 12 months?
  2. How are you bridging the skills gap between 20-year-old’s and 50-year-old’s?
  3. How are you tracking profitability in technicians?

Addressing the Rising Health Care Costs

Brad Buxton (Northwest Community Hospital) spoke to the group about what is driving the cost of healthcare, what can be done to control this cost, and what each individual company could do to control their cost. Some of Brad’s tips included:

  • Ask if your preferred insurer has an ACO (Accountable Care Organization)
  • Incentivize employees to get an annual health exam
  • Find out if your broker is simply shopping rates, or if they are considering the total cost of care and quality of the networks
  • Ask to see utilization (what hospitals and doctors) – what you paid year to year and comparisons
  • Get a consultant to help you with analyzing the data

Special thanks to all of our members and partners who participated in Synergy’s 2018 Financial Forum.

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