PANIC OR PLAN

The results of the survey indicated that many of the respondents focused on cash flow versus profitability. While vitally important, cash flow is only one measure of financial health, and profitability is the ultimate bottom line factor in financial success. Highly successful contractors that we work with use the following tools: budgeting, forecasting, monthly financials and profitability reports. Many of the survey respondents did not report that they rely on those tools to manage their business.

MORE PLANNING NEEDED

The survey results also indicated that firms need to put a plan in place to survive and thrive in the current economic climate. While contract opportunities for both private and public work are reduced for 2009, with expectations of an upswing in 2010, the need for a realistic business and marketing plan is critical.

The survey reported on trends including joint venture participation, targeting larger opportunities and partnering on jobs. According to Grassi, new associations can create new opportunities for contractors. "Contractors can be more competitive on bids, more efficient with productivity, and more successful when utilizing each other's expertise," he says, "We've seen clients utilizing partners with financial backing, minimizing their own financial exposure and presenting more competitive bids. The construction industry is going to overcome the economic downturn. Contractors will emerge stronger, well-prepared, and more diversified than before."

For a complete report on the Survey Results please visit: www.grassicpas.com/2009constructionsurveyresults

About Grassi & Co., CPAs

Grassi & Co. CPAs, P.C. features full-service practices in the areas of taxation, accounting and business consulting. Focused on helping companies run their operations more efficiently, save money on their taxes and plan for the future, the firm has headquarters in Lake Success, New York and offices in Manhattan and North Carolina.