While construction service companies and company owners think the economic recovery may still be several years down the road for Michigan, two new surveys from Plante & Moran, PLLC and the Construction Association of Michigan detail how they are coping.

The Biennial Business and Owners Survey (available at www.cam-online.com) show construction companies are adapting to a shift in the mix of commercial construction projects, an increase in competition and slower payments.  Even while business owners turn from new construction to renovation, they are much happier with the customer service, quality and on-time completion rates of their projects.

"This year's surveys underscore the profound changes the commercial construction industry has faced in light of our state's still-struggling economy," said Tom Doyle, leader of the Construction Industry Group at Plante & Moran.  "Even though the results demonstrate some significant shifts over the past two and four years, projects are still getting done - and company owners may well be the net beneficiary of the increased hunger among construction companies.

"We are pleased to once again partner with CAM to conduct these biennial surveys."

Highlights of the two surveys, which questioned business owners, general contractors, subcontractors, architectural, engineering and other firms working in commercial construction, include:

• In 2009, 79 percent of construction companies reported a decline in project volume compared to 2005, when 51 percent reported an increase.
• Renovation projects provided 40 percent of project work for construction-related companies, while new construction accounted for only 32 percent.  Two years ago, new construction accounted for 54 percent of all projects while renovations were only 31 percent.
• In 2009, education, cultural and scientific buildings topped the list of projects that kept construction companies busy, followed by public works projects.  That trend is expected to continue in 2010.
• Sixty percent of construction service providers expected their workforces will stay the same within the next 12-18 months.
• More than 60 percent of construction companies expect sales will decline next year, while 51 percent expect profitability will decrease.
• Owner satisfaction has improved over the past two years, with more than 97 percent of those surveyed saying they were pleased with the professionalism and customer service of their construction providers.  Ninety-one percent also felt that overall project quality was good.
• Forty-three percent of business owners expect they will spend less on construction and renovation in the next 12-18 months.

Construction service firms are responding to the Michigan doldrums by casting a wider net.  Approximately 43percent of survey respondents work outside the state - and 84 percent of those expect that volume will increase over the next 12-18 months.  Only 15 percent of all construction companies have branch offices outside the state, though.

As the new year begins, nearly 70 percent of construction service firms have a backlog of work under three months.  Only three percent of firms have projects scheduled out more than a year.  Most still rely on the traditional bid process to locate new work - and most have seen an increase in the number of companies they are bidding against.

Most business owners expect renovation, rather than new construction, will comprise the majority of their projects over the coming 12-18 months. 

About Plante & Moran, PLLC

Plante & Moran (www.plantemoran.com) is among the nation's largest certified public accounting and business advisory firms, providing clients with tax, audit, risk management, financial, technology, business consulting, and wealth management services.  Plante & Moran has a staff of more than 1,600 professionals in 21 offices throughout Michigan, Ohio, and Illinois with international offices in Shanghai, China; Monterrey, Mexico; and Mumbai, India.  Plante & Moran has been recognized by a number of organizations, including FORTUNE magazine, as one of the country's best places to work.

About the Construction Association of Michigan

Founded in 1885 and celebrating its 125^th anniversary in 2010, the Construction Association of Michigan is the oldest and largest regional construction association in the United States.  It promotes and supports the construction industry through ongoing legislative relations, professional development and public awareness efforts.  CAM provides leadership on key issues such as regulatory reform, economic development, workers' compensation and unemployment compensation, continuing education, labor relations service and complete safety training programs and consultation.