CPSC Competition
Now Viewing CPSC's competition in: Government
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How have local demographics changed in recent years? - At the federal level, the aging population will result in higher Social Security and Medicare payments in coming years. At the local level, the population has shifted out of parts of the Midwest and Northeast in recent years.
Who are the government's competitors? - There is competition for some government services, such as package delivery, in which the US Postal Service (USPS) competes with private delivery services such as UPS and Federal Express.
What services does the government advertise? - The government typically advertises services such as reduced cost healthcare, as well as information for the public about new government programs. The federal government recruits extensively for military service, and the USPS advertises its delivery services.
How do contractors learn about government contracting opportunities? - Typically potential government contractors must respond to Requests for Proposals (RFPs) in order to be eligible to provide services for the government.
Competitive Landscape
Demand for federal government services is driven by population growth and changing demographics of the US population. For example, the US Census Bureau estimates that the over-65 population will double by 2030, which will increase the demand for programs like Social Security and Medicare over the next 25 years.
Business Challenges
CRITICAL ISSUES
Tax Revenue Depends on Economy - All levels of government rely on tax revenues to finance government services, and revenues are tied to the health of the overall economy. During the late 2000s recession, over 3 million jobs were lost over a period of five months. If people aren't working, they aren't paying payroll taxes and income taxes. They also may have trouble making property tax payments (which primarily fund local government services), and they may reduce consumption, which reduces sales tax revenues. Declining tax revenue is one reason for increased governmental deficit spending, resulting in a rising national debt.
Healthcare Costs Have Multiple Impacts - Rising healthcare costs impact the government through employee benefits, and the cost of Medicare and Medicaid programs. As the largest employer in the US, all levels of government are feeling the impact of rising healthcare costs on employee benefit packages. The Congressional Budget Office (CBO) predicts that by 2025, 25 percent of the US economy (as measured by Gross Domestic Product) will be dedicated to healthcare spending. Currently, 16 percent goes to pay for healthcare. In 1970 the number was 7 percent. By 2018 the US government will become the largest healthcare spender, overtaking the private sector, because of increases in the number of Medicare and Medicaid beneficiaries due to the aging of the baby boom generation.
