Outlook on Construction Markets and Contractors Mixed

FMI Corporation has released the results of its first annual survey of surety providers in a report titled, "Surety Firms Weigh in on Construction Markets and Contractors: FMI Surety Providers Survey Survey results overview: Providers believe this same "back to basics" approach is one that contractors would also do well to embrace A majority of respondents expect the downturn to end by late 2010 or early 2011 A significant number of respondents are concerned about their client's long-term prognosis 25 percent believe their clients are "well positioned to succeed in the marketplace in the next three to five years"  Respondents' concerns about their clients revolved around three items:  Failure to reduce overhead costs in light of declining revenues and backlog; Taking on work in sectors where they are not qualified; and Taking on unacceptable risks in bidding for new work One of the biggest numbers that stands out is that "67 percent of the respondents expect their clients to have a more difficult time obtaining bonding one year from now." Bonding can play a large role in obtaining new work, especially government work which will dominate the funding of new projects in 2010.
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