CAM Biennial Business Survey 2011-2012

7/29/2019 CAM Biennial Business Survey 2011-2012

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2 0 1 1 + 2 0 1 2CONSTRUCTIONA S S O C I AT I O NO F M I CH I G A N


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CONSTRUCTION ASSOCIATION OF MICHIGANcelebrating 127 years of serving Michigans construction industry


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Dear Construc on Associate,

We are pleased to present you with the results of our Biennial

Business and Owner Surveys, which examine ac vity in 2011

and the outlook for the next 18 months. These two surveys

were conducted through the joint e orts of the Construc on

Associa on of Michigan (CAM) and Plante Moran, and their

con nued commitment to provide accurate and mely business

informa on to the construc on industry.

This years survey was issued online to everyone for whom we

had an e-mail address. This enabled a greater response due to the ease of

comple ng and returning the ques ons. For those of you who took the me to

complete the survey, thank you. Your par cipa on is greatly appreciated.

The responses are online, as well, but for those who would like a printed results

booklet, please contact either CAM or Plante Moran. The survey informa on wascompiled from the con den al survey responses by an independent survey

company and developed as part of collabora ve e ort by CAM and Plante Moran.

We have combined the results of both surveys into one single publica on.

The responses contained herein tell a great deal about our region, economy, and

most speci cally, the Michigan construc on industry. Results are indica ve of how

contractors and owners cope with the present economy; the future construc on

climate is also forecasted by those who are directly involved in the Michigan

construc on industry on a daily basis.

As this years survey re ected some posi ve trends and outlooks, we sincerely

hope that this is indica ve of an economic turnaround for the construc on

industry in Michigan. CAM con nues to work hard legisla vely and in the media

to serve our members well. As our mantra states, we are One Industry, One

Resource, One CAM.

Sincerely,

James C. Capo, AIA CAM Chairman of the BoardVice President, Design/Build, DeMa a Group


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The Construc on Associa on of Michigan (CAM) was founded in 1885 as the Builders Exchange of Detroit andMichigan. Celebra ng its 127th year in 2012, CAM is the oldest and largest construc on associa on in NorthAmerica. CAM is headquartered in Bloom eld Hills, Mich., with a second division in Saginaw, known as CAMTri-Ci es. CAM is a not-for-pro t organiza on comprised of 2,600 members. CAM is supported by annual duesand service fees, and is governed by a 12-member board of directors elected annually by the membership.CAM members are comprised of general contractors, subcontractors, equipment and materials suppliers,architects, engineers, and service rms (a orneys, nancial management, etc.).

The associa on is an essen al informa on network for the Michigan construc on industry. It publishes

Construc on Project News, a daily report containing complete details on Michigan projects out for bid.Construc on Pre-View, a weekly publica on, keeps CAM members in the know with news of proposedprojects. With advanced so ware, members can access en re plans and news at their o ce via CAM-Online.

The CAM Buyers Guide is the most widely used tool in the construc on industry. Published yearly, the BuyersGuide is a directory containing each CAM member rm alphabe cally and in classi ed categories. The CAM BuyersGuide is available in print, online via the CAM website at www.cam-online.com, and is also accessible through anew mobile app for smart phones. CAM Magazine, The Voice of the Construc on Industry, is recognized asthe leading monthly industry magazine covering construc on news, business trends, current projects, andconstruc on technology in Michigan. CAM Magazine is in print and also online at www.cammagazineonline.comand has readers worldwide. The magazine maintains a strong social media presence via Facebook, LinkedIn,and Twi er.

CAMTEC, the training and educa on division of CAM, o ers industry-speci c classes and seminars on relevanttopics within todays construc on industry, along with the latest technology and trends. Courses are alsoavailable to be conducted onsite. With a full- me quali ed safety professional/instructor on sta , the CAMSAFETYdepartment o ers free, on-site and hands-on safety training to all CAM members. Under a grant from MIOSHA,training encompasses focus four hazards: falls, caught-in, struck by, and electrocu ons. CAMSAFETY alsoo ers many classes, including OSHA 10- and 30-hour.

The CAM Labor Rela ons Program provides quality labor rela ons assistance and informa on, at no addi onalcost, to union contractors employing carpenters, cement masons, laborers, or opera ng engineers in southeastMichigan. CAM retains a full- me lobbyist, Lansing-based Kindsva er Associates. CAM recently formed the CAMGovernment A airs Commi ee, which is run by its on-sta labor a orney. The Government A airs Commi eesrole is to iden fy governmental issues and/or trends which impact upon the construc on industry in Michigan.

Along with the services men oned above, CAM also o ers health insurance through CAM administra ve services;workers compensa on insurance through CAM Comp; and superior banking service through the Construc onFederal Credit Union.

For more informa on about any of these CAM services, or to inquire about CAM membership, please contact theCAM marke ng department at 248.972.1000.

T H E C O N S T R U C T I O N A S S O C I A T I O N

O F M I C H I G A N

A B O U T

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Serving the needs of the construc on industry for more than 80 years, Plante Moran isMichigans largest cer ed public accoun ng and management consul ng rm. Plante Moranprovides the experience and personal a en on the construc on industry demands, o ering afull range of services including audit and accoun ng; federal, state, and local tax planning;informa on technology and telecommunica ons consul ng; family business succession planning;merger and acquisi on assistance; cost segrega on studies; and strategic planning.

For more informa on about Plante Morans construc on team, please contact Tom Doyleat 248.223.3402 or [email protected] or go to plantemoran.com.

C O - S

P O N S O R

P L A N T E M O R A N


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PAGE 6business survey

PAGE 30business survey written comments t a

b l e o f c o n

t e n t s

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Produced by the Construc on Associa on of Michigan (CAM) and the accoun ngrm Plante & Moran, PLLC, the Biennial Business Survey has been conducted formore than 18 years.

The survey measures contractor opinion in several key categories. b u s i n e

s s s u r v e y


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1 WHICH OF THE FOLLOWING DESIGNATIONS BEST DESCRIBES YOUR PRIMARY BUSINESS?(Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

b u s i n e s s o u t l o o k

Healthcare buildings/hospitals

Educa on/Cultural/Scien c buildings

Interiors/Tenant improvements

Public Works

Transport/Industrial buildings

Residen al

O ce buildings

Hotels

Infrastructure

Religious buildings

Entertainment

Renewable energy

2 WHAT TYPE OF WORK IS PRESENTLY PROVIDING YOUR COMPANY WITH THE MOST OPPORTUNITIES?(Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

Architect/EngineerGeneral contractor

Equipment/Material supplierManufacturer of equipment or materials

Other

Subcontractor

Compared to 2009, publicly-funded work isdown, and healthcare-related worked is onthe increase.

4%10%

13%

13%

24%

36%

12%

11%

7%

13%

14%


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3 WHAT CATEGORY DO YOU ANTICIPATE PROVIDING YOUR COMPANY WITH THEmost opportunities for work in the next 1218 months?(Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

2011

2009

4 IN TERMS OF PROJECT COST, WHAT CATEGORY OF WORK IS PROVIDINGyour company with the most opportunities? (average)

This trend is toward larger size projects, which ismore in line with 2005 survey results.

21%

13%12%

10%

7%

7% 13%

7%3%

3% 3%


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2011

5 IN TERMS OF CONSTRUCTION, WHAT CATEGORY OF WORK IS PROVIDINGyour company with the most opportunities? (average)

2009

New construction continues to be sluggish,with an uptick in retrofit, additions, andmaintenance of existing facilities.

0

5 0

1 0 0

NewConstruc on

Renova on Addi onRetro t Maintenance

24%29%

13%19% 15%

0

5 0

1 0 0

NewConstruc on

Renova on Addi onRetro t Maintenance

32%

40%

7% 9%12%


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10

b u s

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k

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6 HOW HAS THE VOLUME OF WORK FOR WHICH YOU HAVE CONTRACTEDCHANGED OVER THE PAST 12 MONTHS?

7 HOW DO YOU ANTICIPATE THE VOLUME OF WORK CHANGING OVER THE NEXT1218 months? (Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

The survey indicates that we may have hitbo om in 2009. 67% of the respondentscontracted the same amount or more workover the past 12 months.

Down 10% or less

Up between 1020%

Down between 1020%

Up more than 20%

Down more than 20%

Up less than 10%

About the same

This is the most op mis c outlook that we haveseen since 2005.

8%

20%

6%5%

7%

23%

32%

1 0 0

0

5 0

Downmore than

20%

13%

Down10% or

less

11%

Downbetween1020%

9%

Aboutthe same

29%

Up morethan 20%

11%

Upbetween1020%

13%

Up lessthan 10%

14%

1 0 0

0

5 0

Down

more than20%

48%

Down

10% orless

22%

Down

between1020%

9%

About

the same

8%

Up more

than 20%

3%

Up

between1020%

6%

Up less

than 10%

3%


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8 WHAT AREA IN THE STATE OF MICHIGAN DO YOU ANTICIPATE HAVING THEGREATEST NUMBER OF CONSTRUCTION OPPORTUNITIES IN THE NEXT TWO YEARS?

9 ARE YOU CURRENTLY DOING WORK OUTSIDE THE STATE OF MICHIGAN?

10 IF YOU ANSWERED YES, WHAT PERCENTAGE OF YOUR TOTAL VOLUME OF WORK ISPERFORMED OUTSIDE THE STATE OF MICHIGAN?

11 DO YOU ANTICIPATE THAT PERCENTAGE INCREASING OR DECREASING IN THE NEXT1218 months?

Yes 55%No 45%

Southeastern Michigan 65%Southwestern Michigan 25%Northeastern Michigan 4%Northwestern Michigan 5%Upper Peninsula 0%

Yes 43%

No 57%

Less than 10% 26% 10 to 20% 29%

20 to 50% 21% 50% or more 24%

Yes 67%No 33%

2011

2009

Compared to 2009, more contractors are performing work outside the state of Michigan.


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b u s

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12 IN WHICH OF THE FOLLOWING AREAS OUTSIDE THE STATE OF MICHIGAN IS THEWORK BEING PERFORMED?

13 DO YOU CURRENTLY HAVE A COMPANY BRANCH OR SATELLITE IN ANOTHER STA

14 IF YES, IN WHICH STATES ARE YOU CURRENTLY LOCATED?

Yes 22%No 78%

Yes 15%No 85%

Midwest United States 60%Southeastern United States 18%Other 8% Northeastern United States 6%Southwestern United States 6%

Northwestern United States 1%Canada 1%Mexico 0%

2011

2009

Compared to the 2009 survey, there is a7% increase in company branches orsatellites in another state.

Respondents indicated that they eitherhave a branch or satellite o ce in all50 states.

Company Branch/Satellite Loca ons


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16 IF YES, IN WHICH STATES WOULD YOU CONSIDER OPENING IN?2011

2009

States in Considera on

States in Considera on

15 IF NO, DO YOU PLAN ON IT IN THE FUTURE?Yes 20%No 80%


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s e c u r i n g w o r k

More than a year

13 months

46 months

7 12 months

Compared to 2009, companiesbacklogs are increasing.

1 HOW MUCH NEW WORK DO YOU CURRENTLY HAVE BACKLOGGED?(Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

14%

8%

53%

25%


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16

s e c u r i n g

w o r

k

16

3 WHAT PRIMARY METHOD DO YOU ANTICIPATE USING FORSECURING WORK IN THE NEXT TWO YEARS?

This years survey shows a higher trendtoward referral and nego ated work.

2 WHAT IS YOUR PRIMARY METHOD FOR SECURING NEW CONSTRUCTION WORK?

0

5 0

1 0 0

Opencompe ve

bidding Public work

16%

Compe vebidding

Invita on only

39%

Referral

18%

Nego atedirectly with

owner

22%

Other

5%

0

5 0

1 0 0

Open com -pe ve

bidding Public work

19%

Compe vebidding Invita on

only

38%

Referral

20%

Nego atedirectly

withowner

21%

Other

3%


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4 IF YOU ARE BIDDING COMPETITIVE WORK, WHAT IS THE AVERAGE NUMBER O FBIDDERS WHO HAVE BEEN BIDDING AGAI NST YOU ON EACH PROJECT?

In the current survey only 16 percent of projects had 10 or more bidders, comparedto 2009 which had 33 percent.

Yes 61% No 39%

5 Do you anticipate aDDitional profit ma rgins or mark-up pressureon your biDs in the next 1218 months?

1015 bidders

14%

15 or more

2%

510 bidders

52%

Less than 5

32%

0

5 0

1 0 0

1015 bidders

23%

15 or more

10%

510 bidders

42%

Less than 5

25%


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w o r k f o r c e p l a n s

1 what plans Do you have for your workforce over the next 1218 months?

Compared to the 2009 survey, respondents indicatea trend toward expanding their workforce.

18

A d d f u l l - t i m e

e m p

l o y e e s

18%

64%

N o c h a n g e

i n n u m

b e r

o f e m p

l o y e e s

L a y o f

f

p a r

t - t i m e

e m p

l o y e e s

5%4%

A d d p a r

t - t i m e

e m p

l o y e e s

L a y o f

f f u l

l - t i m e

e m p

l o y e e s

9%


e m p

l o y e e s

8%

60%

N o c h a n g e

i n n u m

b e r

o f e m p

l o y e e s

L a y o f

f f u l

l - t i m e

e m p

l o y e e s

23%

6%

A d d p a r

t - t i m e

e m p

l o y e e s

L a y o f

f p a r

t - t i m e

e m p

l o y e e s

3%


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Subcontractors

Architects/Engineers

General Contractors

(2011 Sector breakdown)

14%

L a y o f

f

p a r t - t

i m e

e m p

l o y e e s

L a y o f

f f u

l l - t i m e

e m p

l o y e e s

4%

N o c h a n g e

i n n u m

b e r

o f e m p

l o y e e s

65%


e m p

l o y e e s

12%

A d d p a r t - t

i m e

e m p

l o y e e s

5%

Suppliers


e m p

l o y e e s

14%

A d d p a r

t - t i m e

e m p

l o y e e s

5%

N o c h a n g e

i n n u m

b e r

o f e m p

l o y e e s

71%

L a y o f

f

p a r

t - t i m e

e m p

l o y e e s

5%

L a y o f

f f u l

l - t i m e

e m p

l o y e e s

5%


e m p

l o y e e s

27%

A d d p a r t - t

i m e

e m p

l o y e e s

3%

N o c h a n g e

i n n u m

b e r

o f e m p

l o y e e s

65%

L a y o f

f f u

l l - t i m e

e m p

l o y e e s

0%

L a y o f

f

p a r t - t

i m e

e m p

l o y e e s

5%


e m p

l o y e e s

14%

A d d p a r

t - t i m e

e m p

l o y e e s

0%

N o c h a n g e

i n n u m

b e r

o f e m p l o y e e s

64%

L a y

o f f f u l

l - t i m e

e m p

l o y e e s

14%

L a y o f

f

p a r

t - t i m e

e m p

l o y e e s

9%


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f i n a n c i a l h e a l t h

1 SELECT THE 3 STRATEGIES YOUR COMPANY HAS UNDERTAKEN TO IMPROVE PROF ITABILITY.

Compared to 2009, there appears to be more

focus on improving processes, and less on

right-sizing/cost-cu ng.

Cut Administra ve Costs 24%Improving processes/Products 22%

Sta reduc on/Right-sizing 15%Enhanced marke ng 12%Geographic expansion 10%Design/Build projects 8%Safety/Risk management 6%Enhanced training 4%

Cut Administra ve Costs 32%Sta reduc on/Right-sizing 25%

Improving processes/Products 17%Enhanced marke ng 10%Geographic expansion 9%Design/Build projects 4%Safety/Risk management 2%Enhanced training 1%


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4 IF YES, WHICH OF TH E FOLLOWING IS TH E KEY ELEME NT OF YOUR STRATEG(Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

2 WHAT STRUCTURE BEST DESCRIBES YOUR BUSINESS?

Selling to key management personnel

Selling/Transferring to family

Selling to a strategic buyer

Winding down/Liquida ngEstablishing an ESOP

Merging with another company

9%

8%

5%5%

43%

31%

3 DO YOU CURRENTLY HAVE A BUSINESS SUC CESSION PLAN IN P LACEOR IN PROCESS?

Yes 47% No 53%

Family-owned

65%

Other

35%


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5 HOW DOES YOUR PRESENT CASH FLOW SITUATION COMPARE TO LAST YEAR?

(2011 Sector breakdown)Subcontractors

Architects/Engineers

General Contractors

Suppliers

According to respondents cash ow has improvedcompared to 2009.

Worsethan

last year

About thesame aslast year

Be erthan

last year

21%

33%

46%

Be er thanlast year

10%

Worsethan

last year

58%


32%

Worsethan

last year

35%


40%

Be erthan

last year

25%

Worsethan

last year

47%


37%

Be erthan

last year

16%

Worsethan

last year

31%


51%

Be erthan

last year

17%

Worsethan

last year

35%


55%

Be erthan

last year

10%


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6 in the ne xt 1218 months, Do you antic ipate your cash flow to be:

7 WHAT IS THE AVERAGE LENGTH OF TIME IT TAKES YOUR COMPANY TO RECEIVFINAL PAYMENT FOR WORK PE RFORMED OR MATERIALS PROVIDED?

8 DO YOU ANTICIPATE THE AVERAGE TIME IT TAKES TO BE PAID IMPROVINGOR GETTING WORSE in the next 1218 months?

9 WHAT PERCENTAGE OF YOUR TOTAL SALES DO YOU MAINTAIN IN EQUITY?

Less than 5 25%510% 39%1020% 20%More than 20% 16%

Less than 5 35%510% 32%1020% 21%More than 20% 11%

More than 90 days 37%60 days 48%30 days 15%

Improving 41%Ge ng Worse 59%

Improving 28%Ge ng Worse 72%

Respondents equity posi on is improving.

Be er WorseAbout thesame

65%

16%19%

Be er WorseAbout thesame

51%

35%

13%


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10 IS YOUR EQUITY POSITION SUFFICIE NT TO MANAGE YOUR CASH FLOW NEEDS?Yes 68%No 32%

Yes 82%No 18%

Yes 57%

No 43%

Improving 13% Staying the same 53% Not Improving 34%

More than 12 months 81%612 months 19%

11 DO YOU HAVE ACCESS TO A LINE O F CREDIT?

12 IF NO, HAVE YOU HAD ACCESS TO A CREDIT LI NE IN THE PAST?

13 WHAT DO YOU ANTICIPATE HAPPENIN G WITH THE CRE DIT MARKETS IN THENEXT SIX MONTHS?

14 IF YOU DONT ANTICIPATE THE CREDIT MARKETS IMPROVING IN THE NEXT SI XMONTHS, WHEN?

15 HAVE YOU FILED A CLAIM OF LIEN IN TH E PAST 12 MONTHS?(Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

Respondents credit market concernscon nue.

No claims

15

5 10

More than 1028%

2% 2%

68%

The last four surveys have shown that mostcompanies dont le Claims of Lien.


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16 WHAT PERCENTAGE OF THE WORK YOU PERFORM IS B ONDED?

17 IS YOUR COMPANY HAVING MORE DIFFICULTY SECURING SUFFICIENTBONDING CAPACITY?

18 HOW HAVE MATERIAL PRICES FOR YOUR BU SINESS CHANGED IN THEPAST 12 MONTHS?

Yes 24%No 76%

No bonded work 42%10% 28% 20-40% 17%41% or more 14%

Increase in prices 79%Stay about the same 19% Decrease in prices 2%

20 HAVE YOU BEEN ABLE TO OBTAIN ESCALATION CLAUSES IN YOUR CONTRACTYes 10%No 43% Havent tried 46%

19 Do you antici pate material prices changing in the next 1218 months?An cipate increase in prices 77%Stay the same 21% An cipate decrease in prices 2%

Increase in prices 43% Stay about the same 40% Decrease in prices 16%

The price pressures that were seen in the 2005

and 2007 surveys have returned.


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21 COMPARED TO THE PRIOR YEAR SAL ES, YOUR COMPANYS ANNUAL SALES FOR THEcoming year will:

22 compareD to the prior year, your companys profitability for the comin g year will:

Respondents are op mis c about their sales and pro tability for the coming year.

15%

I n c r e a s e m o r e

t h a n 1 0 %

32%

I n c r e a s e

1

1 0 %

27%

S t a y a b o u t

t h e s a m e

15%

D e c r e a s e 0

t o 1 0 %

12%

D e c r e a s e m o r e

t h a n 1 0 %

10%


t h a n 1 0 %

6%

I n c r e a s e

1

1 0 %

28%

S t a y a b o u t

t h e s a m e

29%

D e c r e a s e 0

t o 1 0 %

26%


t h a n 1 0 %

20%


t h a n 1 0 %

20%

I n c r e a s e

1

1 0 %

36%

S t a y a b o u t

t h e s a m e

12%

D e c r e a s e 0

t o 1 0 %

12%


t h a n 1 0 %

10%


t h a n 1 0 %

9%

I n c r e a s e

1

1 0 %

20%

S t a y a b o u t

t h e s a m e

21%

D e c r e a s e 0

t o 1 0 %

40%


t h a n 1 0 %


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t e c h n o l o g y / s u s t a i n a b i l i t y

1 WHICH OF THESE ONLINE TECHNOLOGIES IS BEING UTIL IZED BY YOUR COMPANY?Online job bidding Online project management

Online plans and speci ca ons

29

Nointerest

Currentlyusing

52%

Planning toimplement

6%

Consideringimplementing

19% 23%

Nointerest

Currentlyusing

74%


7%


13%7%

Currentlyusing

27%


10%


30%

Nointerest

33%


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30

t e c

h n o l o g y

/ s u s

t a

i n a

b i l i t y

30

2 WHAT PERCENTAGE OF YOUR COMPANY IS CURRE NTLY LEED CERTIFIED?(Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

3 IF NONE OF YOUR E MPLOYEES ARE CURRE NTLY LEED CERTIFIED, DO YOU HAPLANS FOR THEM TO PURSUE LE ED CERTIFICATION IN THE FUTURE?

4 DOES YOUR COMPANY CURR ENTLY REGULARLY ENGAGE IN GREEN ORSUSTAINABLE BUILDING PRAC TICES?

Below 10%

1025%2650%

5175%

Over 75%

15%

8%5%

2%

70%

Yes 28%No 72%

Yes 52%No 48%

5 IF NO, DO YOU HAVE PLAN S TO BECOME MORE ACTIVELY INVOLVED INGREEN OR SUSTAINABLE BUIL DING PRACTICES?Yes 31%No 69%

Based on the survey there has been anincrease in the number of LEED AccreditedProfessionals.

6 Does your company currently utilize b im (builDing inform ationmoDeling) in its projects?

Yes 22%No 78%

Yes 12%No 88%


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7 IF NO, DO YOU HAVE PLANS TO UTILIZE BIM IN FUTURE PROJEC TS?



General Contractors

General Contractors

Subcontractors

Subcontractors

Architects and Engineers

Architects and Engineers

Suppliers

Suppliers

Yes 26%No 74%

Yes 22%No 78%

Yes 12%No 88%

Yes 7%No 93%

Yes 16%No 84%

Yes 14%No 86%

Yes 25%No 75%

Yes 12%No 88%

Yes 33%No 67%

Yes 33%No 67%


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p o l i c i e s a n d p r o c e d ur e s

1 DO YOU HAVE PLANS TO ENHANCE ANY OF THE FOLLOWING PO LICIES AND PROCEDU RES?

2 what percentage of your construction work i s DesigneD by michigan-baseDARCHITECTURAL OR ENGINEERING FIRMS?More than 90% 24% 7090% 26%5070% 20%3050% 14% 10 30% 6%Less than 10% 10%

Job safety procedures

Sta development/Training Substance abuse tes ng Minority employment Employee the policies Employee bene t programs Handicapped employment

68%

73%33%32%29% 32%10%

32%

27%67%68%71%68%90%

YES NO


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g , d d : Republican 60%Democrat 7%Independent 18%No preference 14%

What is your personal net worth? Less than $100,000 7%$100,000$499,999 21%$500,000$1 million 32%$1 million$2 million 38%

What is the last grade of school you completed? High school 9%Voca onal/Technical school 4%Some college 25%College degree 45%Post-graduate degree 17%

Is a woman a majority owner (51 percent or more)of this business? Yes 7%No 93%

Is this a minority-owned (excluding female-owned) business?Yes 3%No 97%

Where are you located in the state of Michigan?

Oakland County 34%Wayne County 20%Macomb County 18% Other 20% Mid-Michigan 7%Balance of Detroit 1%

Approximately how long has your company been in business?5 years or less 7%515 years 12%1530 years 27%More than 30 years 54%

w ? President 47%Chief execu ve o cer 7%Chief nancial o cer 10%Other 36%

What is your approximate age? 2134 4%3544 8%4554 39%5564 41%65over 9%

34


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1 AT THE PRESENT TIME, WHAT IS YOUR BIGGEST CONCERN ABOUT THECONSTRUCTION INDUSTRY?

High taxes keeping new businesses out of Michigan. Stability

Limited new construc on starts. Lowered fees and heightened expecta ons. Too many empty buildings and no need for new

construc on. Evolving from a me and material to lump sum

model. Not enough work for all the excava ng companies

out there; public or private. Private is essen allydead in our area. Public is dwindling. Thecompe on is insane. Ridiculous rates beingused to win.

Unsustainable Lack of economic growth. Lack of new projects going ahead. Overall economic con dence and health will either

help or hurt future construc on in this country. Pro t margins, insurance costs, lack of overall talent

working in the eld. Lack of work, future shortage of tradesmen,

increase of material prices due to less companiesproducing the materials.

Too many bidders. Banking, bonding, pro ts. Ge ng more work. Funding for the work that needs to be done both in

the public sector and the private sector to competein a global economy.

Lack of available credit. Lack of lending for projects. Ge ng paid as outlined in the contracts we sign. Uncertainty in poli cs and future direc on of the

country, healthcare reform. The industry is in a depression & declining. Rising payroll and bene t costs. Too much interference by the DEQ and DNR. There are more construc on companies than there

are opportuni es. The downturn in the economyhas halted construc on projects that wouldotherwise be moving forward. Therefore, theconstruc on opportuni es are limited.

Slow pay, no pay (foreclosures, bankruptcies,defaults.)

The housing and job market is poor in Michigan. Training the future workforce. Taxes and materials increases due to oil prices. Union vs. non-union, how do we as a union

contractor compete? Compe ve bidding margins are non-existent ornega ve due to survival tac cs being used by manycompe tors.

Customers ability to pay. Not enough jobs, therefore s compe on for

each job that is out there. Government regula on preference to minority

such as 65% Detroit residencys not the de ni onof minority which is de ned less than 1/2 of whole.Cannot secure projects and be pro table inMichigan Contractors doing Davis Bacon,manipula ng cer ed payroll Unions not incompliance with their CBA, keeping delinquentcontractors un l they cheated the fringes so deep,

their only hope is to collect on a future job.

The morals and ethics. The decline in pro tability.

Lack of trained/quality/skilled contractors. Vola lity Pension fund withdrawal liabili es for union

contractors has handcu ed many contractors intostaying in union contracts that are simply notcompe ve. Worst yet, these same underfundedpension obliga ons are necessita ng increases inwage and bene t costs, widening the cost gapbetween open shop and union contractors.

Not enough work- private or public. Private isabsolutely dead. The inability to reach a constantlevel of growth so that some strength developsallowing in employment and the reduc on of theneed to constantly be under bidding just to keepthe doors open. All this does is produce shoddywork because of all the corner-cu ng. The nextbiggest threat is over regula on, by government(local and na onal) of all aspects of commonconstruc on. This includes materials and laborrestric ons. Last, is the lack of training requiredof inspectors that are put in the eld to make sureconstruc on standards are met with an ability toalso apply common sense to their rulings.

Government regula ons. Banks non-responsiveto loans.

Be able to con nue to bid on new projects and toremain compe ve.

Overcapacity Compe tors pricing. It seems my compe tors are

bidding work in despera on, or ignorance of theirtrue costs. I cannot come close to the numbersbeing put out on compe ve bids.

The despera on of some contractors biddingprojects at a unrealis c margin. The municipalinfrastructure projects have dried up.

Not having enough projects to bid and the pro tmargin being slim-to-none of the projects youdo get awarded. It is very cut-throat becausecompanies so badly need the work just tostay a oat.

That it remains fair to everyone, owners, designand construc on.

Availability of credit for clients to get theirprojects o and running. Also, the me to getprojects funded by the banks.

Growth, available credit.

Unions being oblivious to the posi on that theyhave put their member in. Their unwillingnessto step back, reduce the greed factor and upproduc vity.

No money available for anyone to build. Poor designs, contractors outside of their specialty

engaging in the type of work that we do. Too much CYA mentalitynobody willing to take

responsibility for their own ac ons. Morals and ethics. Union labor costs. Lack of projects, lack of building needs, over-supply

of buildings. Whether or not it will return to anywhere near

previous levels.


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2 WHAT IS YOUR SUGGESTED SOLUTION FOR THIS PROBLEM?

36

There are three: the lack of decent margins, the lackof loyalty by customers to get quality service, andthe amount of me it is taking to collect money.

Business growth over the next 5 years. Decline of quali ed help due to the lack of support

from the MEA on skilled trade training. High schoolshave eliminated shop classes and the youth of todayhas no concept of manufacturing.

Ge ng work! The U.S. economy. No private sector work to bid, only schools, etc. The slow payment termsgreater than 30 days. Non-union in ltra on. Too much compe on for the lack of work on hand. Not enough projects for the amount of construc on

companies out there. We will see a lot morecompanies close in the next 12 months.

The market and compe on con nuing to bid orpursue projects so low as to knock out viable/strong

companies that cannot go low dollar. The pressureto be cheap makes it extremely di cult to providevalue to the industry (example: provide BIM, otherinnova ons in construc on delivery, etc.

Future work. Wage and health costs. Being a sub-contractor, the CMs, unions, suppliers

and regula ons drive up costs every year. At thesame me, unions and CMs drive the Market Priceinto the ground.

Union issues, cash ow margins. The president appearing on TV. Economy Mortality Lack of projects and ght margins in Southeast

Michigan. OBAMA Lack of volume of work in the state of Michigan.

Lower business taxes for all Michigan businesses.Lessen regula ons.

Nego ated work with repeat customers. Loosen credit. Ac vely managing our design projects focusing

on what adds value and elimina ng e ort thatdoes not.

Make the banks lend more money. Aggressively moving to a lump sum model pricing

with higher risk/reward. With all the foreclosed houses, and the age of all

the houses being below standard, fund a demoplan. It would clean up neighborhoods and spur ona new construc on boom. Youd have cleanerneighborhoods and homes up-to-code.

Be er business climate. Less discrimina on. Downsize government and change pension plans

for unions. A government that is business-friendly, reduces

taxes on all, and reduces frivolous spending. The answer to this is far too extensive to indicate in

the space given here. Stability in the economy for work, market to

high school students the advantages of being atradesman and once the economy stabilizes andwe have coopera on in Washington, business willbegin to ramp up produc on.

Companies need to leave the area. More projects to bid on. O er be er prices. U lize more t-outs of exis ng proper es.

Demolish blighted proper es. Lower taxes for small business. Tax incen ves for

new construc on. Put people to work rebuilding the infrastructure

as a start. Cut back on government duplica on.We have too many government en es. Lessgovernment and more commerce.

Federal government needs to take restric onso lenders.

Being able to lien public work. Legisla on Revise tax code, eliminate Obamacare. Remove the remainder of democrats from

Washington, D.C. and the state of Michigan. U lize the free market system Tiered wage & bene t structures for unionized

workers. Less regula on from the DEQ & DNR. To increase the opportuni es to bid; it may take

diversity and o ering more than one line of trade. Government backing of credit programs. Upfront payments/planning/communica ons from

lenders, proof of nancing, less government redtape with HUD/MSHDA, no CO without proof ofnal/full payment to gc/subs.)

Need pro-business policies in Washington. Company-driven mentoring and training programs. Reduce taxes. Stop the escala ng wage increases un l the

economy gets stronger! Subcontractors should be selected by

performance and price/fee nego ated. Find a way to reduce the nancial burdens (such as

healthcare costs, gas and food) of the everyday Joeso that he or she might be able to make a purchaseof some sort. Right now I cant buy or invest inanything because of those costs. This would in turnhelp businesses which would then help theemployee which would then reduce the everydayJoes nancial burdens.

Have the Fed quit micro-managing. More skilled training programs. Economy needs to balance outhelp from the Feds. There needs to be substan al reform in the

pensions themselves. Exis ng tradespeople cannotexpect to re re with rich packages at 50 years old.New tradespeople must enter with a dras callydi erent wage and bene t structure.


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Un l someone with common sense and half a brainis chosen to run the country and force banks andnancial ins tu ons to quit hoarding our money(given to them to s mulate something besides theirbo om line) construc on will su er, employmentwill con nue to su er, the economic recoverywont happen and our strength will con nuedownward. We will need to make a change inelected o cials from those that are presently partof the establishment that looks only to enrichthemselves at our expense. They need to bereplaced with people that have a passion for theU.S. and its nancial health and the growth of oureconomy and for the resul ng health of its ci zensand their nancial well-being. Going to be one hellof a ght to accomplish that, but the rewards will belong las ng for everyone.

Increasing tari to foreign countries. Governmentto get out of private business.

Hunker down and wait out the despera on.Eventually the low bid compe tors will either begone, or have a su cient amount of work on their

books that the prices will again become pro tablefor my rm. Maintaining adequate equity in thecompany has allowed us to do this.

Spending in the municipal sector will be aninvestment in our countrys future. Without astate-of-the-art, dependable infrastructure system,business cannot con nue to func on e ciently.

More work open opportuni es at ins tu ons universi es, hospitals, government which aree ec vely closed to oustside non-favorites rms.

Actually ge ng together to talk. Loosen the loan requirements again for people/

companies that have not abused the system(s).

Make Michigan a Right-to-Work state. I wish I knew. Poli cal stability, economic leadership. I do not have any solu ons because these are forces

beyond my control. We just need to constantlyadapt to them.

Private industry and private company growth anddevelopment get the darn government out ofthe way of growth!

Put more e ort into training for the trades.Every school district should o er an industrialarts programwood shop, metals, art, etc.

New President and Administra on in Washington. More jobs people spend money, people hire and

things get be er. Prompt payment terms no longer than 30 days. Reduced labor costs through improved collec ve

bargaining. Economic turnaround. Con nue to educate clients about comparing apples

to apples understanding the value of service overprice.

VoteChange our government. I gave up, the sub-contractors are the back-bone ofthis industry. Who has the me to ght?

Ease credit availability. Look elsewhere. Get the government to stop picking winners

and losers. Take the corporate tax rate to zeroand watch how many new workers would be hiredto build the projects that would be spurred byinvestment in this state.

2011

3 WOULD YOU STILL CHOOSE TO MAKE YOUR LIVING IN THE CONSTRUCTION INDUSTRY IF YOUWERE BEGINNING YOUR CAREER TODAY?

In the almost 20 years since the surveys incep on,this is the rst me that the Nos have outnumberedthe Yess.

2009

Yes

37%

No

31%

Unsure

32%

Unsure

24%

Yes

37%

No

39%


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4 of those who answereD no, the following are some of their reasons: Too many outside, uncontrollable factors determine

pro tability. The cut-throatness of this industry is frustra ng.

Your numbers are shopped and then used againstyou to get the work. The engineers and architectsare so slow to adapt to technology and use ofonline bidding, submi ng of submi als, pay apps.Stone age.

Seasonality is tough. Margins s nk. It's hard workfor how li le you can make on it.

It simply isn't worth the e ort anymore. Nearlyevery project devolves into a bi er struggle almostimmediately. Owners don't pay architects so thespecs are horrible, the GC's are not making anymoney, so they basically do nothing but harass you.The culture/environment in the construc onindustry is very poor at best. Confronta on,

mistrust and disagreement are the norm. Low pro ts and a lot of work. My background is in design, and I would stay

in design. This is not a fun business to be in right now. It is

a buyers market and will be that way for yearsto come.

Reaganomics worked in the good old days.Obamanomics has not been e ec ve and willnot work in the future.

The work is hard, the risks are high, the pay is lessthan appropriate for my goals. Should have beena poli cian.

I dont want my children to be involved in a unioncompany while the market moves to a non-union

world.

Too much stress. As general contractors, we are on a road to self

destruc on. Tremendous price pressure caused byway too much compe on is leading us to use lessthan quali ed subcontractors, who all have to gureout how to cut corners to "get low" in their bidding.Yet, Owners are more and more demanding in theirrequirements for speed, quality and low cost.We get stuck in the middle, trying to produce silkfrom sows ears.

Unethical contractors, unethical owners. Loss of joy. Too much risk for the reward. It has turned into a cut-throat industry with

shops like ours cu ng prices to turn dollars andeventually going down. Ran an ad on Craigslist,Oakland Press, and Michigan Works for well over a

month and it yielded only 2 applicantsOne thatwanted more money than I pay myself and theother was not quali ed. State and Federalregula ons are closing in on the smallermanufacturers and will eventually strangle mostbusinesses. We will have the cleanest unemployedna on in the world.

Construc on is a risky business with a tremendousamount of stress and a low success rate.

Pro ts have pre y much disappeared. The industry is too vola le and unpredictable and

has a frustra ng mix of ignorance and poli cs. Poor business/economic outlook. The industry as a whole does not have the respect

needed from government and/or the public.

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This survey examines the construc on industry from the clients perspec ves. The two-partques onnaire asks owners and construc on clients about plans for upcoming work, and theirpercep ons of Michigans construc on industry and its prac ces.

Survey par cipants were selected at random from CAMs Daily Construc on Project Newsdivision, which monitors construc on ac vity throughout the state. The majority ofrespondents were gleaned from both public and private en es. o w

n e r s u r v e y


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1 WHEN DOING CONSTRUC TION PLANNING, WHOM DO YOU CONSULT FIRST ABOUTYOUR PROJECT?

c l i e n t p e r s p e c t i v e

A r c h i t e c t

C o n t r a c t o r

F i n a n c i a l

I n s

t u o n

A c c o u n t a n t

A o

r n e y

39%48%

2% 2%

11%

2 WHICH OF THE FOLLOWING WOULD BEST SUMMARIZE YOUR GENERAL EXPERIENCE WITH THEPROFESSIONALISM OF CONSTRUCTION PERSONNEL DURING THE BUILDING PROCESS?

Pleased/Sa s ed

Adequate Disappointed

54%

38%

8%


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4 WHAT WAS THE OVERALL QUALITY OF THE CONSTRUCTION IN YOURMOST RECENT PROJECT?

5 IF YOU ANSWERED SATISFACTORY OR POOR, WHERE WAS THE QUALITY LESSTHAN EXPECTED?

3 IF YOU ANSWERED ADEQUATE OR DISAPPOINTED, WHAT AREAS WERE YOULESS THAN PLEASED WITH?

Price nego a ons a er contract is set. Lack of prepara ons, pay when paid clauses, not accurate paperwork. Not engaged fully near end of project. Planning, subdividing, awkwardly or es mated. Design details, accurate pricing. General lack of ability to work together as a team. Inherent mistrust is prevalent between all

par es. Lack of understanding of basic construc on procedures/ ming and scheduling issues. Overall speci c project knowledge in terms of scope and budget. As an owner I nd myself consul ng CM and engineering rms more to get performance.

The CM rms having to complete have sunk back more into a General Contractor role as muchas possible and leave owner representa ve work to the wayside. It is very apparent. I have beenpleased with the comeback of the architecture houses doing more owner advocacy,but they lack very heavily to almost fail coming in on the front end of bond prepara on orpanning. They have a role and when they s ck to it, it falls into place. I nd it di cult to get theright teams together to make things happen. I have been doing commercial and industrialconstruc on for 22 years. Last year I purchased around 20 million in construc on services.I think the CM services are just bad at keeping schedule. I believe this is the e ect of theeconomy as punch lists linger forever and occupancy is sold as comple on. This is a serious trend that has developed in small and large projects.

Ge ng a quote. I dont always feel that the CM is working in our best interest. Money may be spend that could

probably be avoided while s ll achieving the same result. Lack of integrity. Trades are slow to get the work completed in a mely manner. LaborVery few journeymen or care about their work.

Electrical contractors. CM services. Owners representa ve serviceslack of choices in West Michigan and in some

cases involving themselves in the poli cal environment to gain more posi on or more work.ORS services, Lakeview Construc on bad as well as others. Big problem with both. Have notseen this from Architects, Lawyers, or Accoun ng rms.

Cra smanship Budget inadequate to provide good enough quality construc on materials Details missedpoor communica on. As a pain ng contractor, Drywall contractors are worse. There are few that take pride in

their work. Lean construc on and integrated project delivery.

Excellent

26%

Good

44%

Sa sfactory

24%

Poor

6%


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6 WHICH OF THE FOLLOWING WOULD BEST SUMMARIZE YOUR GENERAL EXPERIENCE WITH THEOVERALL CONSTRUCTION PROCESS?

7 IF YOU ANSWERED MORE CONFLICTS THAN EXPECTED, PLEASE DESCRIBE THE CONFLICTS.

Proceeded as expected 67%More con icts than expected 18%Smoother than expected 15%

Renova on work and redevelopment in downtown se ng is extremely di cult. Contracts that we are being asked to sign are generally completely one sided. Insurance requirements have become

a large point of conten on. The projects are being poorly planned by the owners/architects/construc on managers,almost immediately leading to con icts.

Scheduling from the beginning. Everybody wants to get done. Too many work orders from Architects,engineers and subs not taking enough me to cover everything in their drawings to bids.

There are industry barriers that have been experienced. Par cularly in the areas of bonding andprequali ca on.

8 WHICH OF THE FOLLOWING WOULD BEST SUMMARIZE YOUR GENERAL EXPERIENCEWITH PROJECT COSTS?

Greater than expected 29%Equal to expecta ons 49%Below expecta ons 22%

9 IF YOU ANSWERED GREATER THAN EXPECTED, WHAT AREAS CAUSED THE EXCESS COSTS? Missing informa on. EverythingStructure HVAC, Plumbing, Electrical, Finishes. Allowance items totally inadequate. Materials subs trying to change their quotes a er they have been awarded the project.

10 WHICH OF THE FOLLOWING WOULD BEST SUMMARIZE YOUR GENERAL EXPERIENCEWITH PROJECT COMPLETION TIMES?

On me

38%

Delayed Contractor

Fault

35%

Delayed No Fault

9%

Other

6%

Delayed Owners

Fault

12%

Ahead ofschedule

0%


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t p e r s p e c

t i v e

44

11 WHICH OF THE FOLLOWING GENERALLY CAUSES THE MOST DELAYS INPROJECT COMPLETION OR CLOSEOUT?

12 IN YOUR OPINION, WHOM SHOULD YOU CONTACT FIRST TO ADDRESS PROBLEMSWITH YOUR PROJECT?(Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

Architects

General Contractor/Construc on Manager

Other

Engineers

6%

71%

15%

9%

Q u a l i t y o

f

L a b o r

O t h e r

U n

f o r e s e e n

P r o

b l e m s

C o m m u n i c a o n s

w i t

h P r o j e c t

M a n a g e r s

C o m m u n i c a o n s

w i t

h O w n e r s

C o m m u n i c a o n s w i t

h

S u b c o n t r a c t o r s

31%26%

20%11%

6% 6%

13 WHAT PERCENTAGE OF THE FEES CHARGED FOR CONSTRUCTION SERVICESDO YOU BELIEVE REPRESENTS PROFIT FOR GENERAL CONTRACTORS?

Less than 5% 29%510% 44%10 20% 24%More than 20% 3%


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1 compareD to prior year sales, your companys annual sales for the coming year wil l:

f i n a n c i a l h e a l t h a n d o u t l o o k

Pro tability trends are up across the board.

I n c r e a s e

m o r e t h a n 1 0 %

20%

I n c r e a s e

1 1 0 %

7%

S t a y a b o u t

t h e s a m e

40%

D e c r e a s e

0 1

0 %

27%


t h a n 1 0 %

6%


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f i n a n c

i a l h e a

l t h a n

d o u

t l o o

k

48

3 over the nex t 1218 months, your anticipateD constructionspenDing will:

Construc on spending appears to be trending up.

4 OTHER THAN THE ECONOMY, RANK THE THREE MOST CHALLENGING AREAS FACyour business in the next two years: (Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

Government Funding

Insurance Costs

Compe on

Interest Rates

Material/Construc on Costs

Informa on Technology

Other

Increase110%

20%

Increasemore than

10%

20%

Stay aboutthe same

30%

Decrease010%

17%

Decreasemore

than 10%

13%

2 COMPARED TO THE PRIOR YEAR, YOUR COMPANYS PROFITABILITY FORthe coming year will:

I n c r e a s e

m o r e t h a n 1 0 %

11%

I n c r e a s e

1 1 0 %

14%

S t a y a b o u t

t h e s a m e

50%

D e c r e a s e

0 1

0 %

18%


t h a n 1 0 %

7%

3%

23%

23%

13%

10%

10%

17%


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6 WHAT DO YOU FEEL THE OVERALL OUTLOOK IS FOR YOUR BUSINESS SECTOR INthe next 1218 months?

5 GENERALLY, HOW HAS YOUR BUSINESS PERFORMED OVER THE LAST 12 MONTHS?

Worse than expected 31% As expected 52%Be er than expected 17%

Worse than expected 23% As expected 60%Be er than expected 17%


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1 how many non-resiDential p rojects has your organization been involveD inPLANNING AND/OR CONSTRUCTING WITHIN THE PAST YEAR?(Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

2 5 projectsMore than 10 projects

610 projects

No projects

1 project28%

45%

17%

7%3%

c o n s t r u c t i o n p r o j e c t a c t i v i t y


54/64

c o n s

t r u c

t i o n p r o

j e c

t a c

t i v

i t y

52

4 WHAT TYPE OF WORK WILL BE DONE ON THE MAJORITY OF YOUR PROJECTS OVEthe next 1218 months?

5 WHAT CATEGORY OF WORK IS CURRENTLY PROVIDING YOUR COMPANY WITH THMOST OPPORTUNITIES FOR WORK?(Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

O ce buildings


Public WorksInteriors/Tenant improvements



Infrastructure

Renewable energy

HotelsEntertainment

Religious buildings

Residen al

Renova on/Retro t 48%Addi on/Expansion 17%New construc on 24%Maintenance 10 %

9%

13%

14%

9%

16%

9%

5%5%

2%2%

7%

7%

2 DO YOU ANTICIPATE AN INCREASE OR DECREASE IN THE NUM BER OFnon-resiDential projec ts your company is planning anD/orconstructing in the next 1218 months?

3 WHAT TYPE OF WORK WAS DONE ON THE MAJORITY OF YOUR PROJECTS?

Increase 17 %Decrease 33%Stay about the same 50%

Renova on/Retro t 48%Addi on/Expansion 21%New construc on 21 %Maintenance 10 %


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6 WHAT CATEGORY OF WORK DO YOU SEE P ROVIDING YOUR COMPANY WITH THE MOSTopportunit ies for work over the next 1218 months? (Categories are listed in descending order of the greatest to least number responses as shown in the pie chart.)

7 WHAT IS THE AVERAGE ESTIMATED PRICE OF YOUR PRIOR PROJECTS?

8 WHAT IS THE AVERAGE ESTIMATED PRICE OF YOUR FUTURE PROJECTS?

13%

13%

13%

9%

14%

10%

5%3%

3%2%

8%

8%

O ce buildings


Public Works

Interiors/Tenant improvements



Infrastructure

Renewable energy

HotelsEntertainment

Religious buildings

Residen al

Lessthan

$100K

24%

$100K$500K

26%

$500K$1M

18%

$1M$2M

9%

$2M$5M

12%

$5$10M

6%

Morethan

$10M

6%

Lessthan

$100K

30%

$100K$500K

27%

$500K$1M

20%

$1M$2M

0%

$2M$5M

10%

$5$10M

3%

Morethan

$10M

10%


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5454


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t e c h n o l o g y / s u s t a i n a b i l i t y

1 DOES A CONTRACTORS ABILITY TO UTILIZE ONLINE/ELECTRONIC TECHNOLOGIES SUCH AS BIM(builDing information moDeling) influence your Decision to hire them?

2 IF YES, DO YOU FEEL YOU ACHIEVE COST SAVINGS BY DOING SO?

Yes 34% No 66%

Yes 88% No 12%


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8 have you utilizeD bim technology (builDing information moDeling) in any ofYOUR CURRENT PROJECTS?

9 if you answereD no, Do you anticipate using b im technology (builDing informationmoDeling) in the next 1218 months?

Yes 21% No 79%

Yes 38% No 62%


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1 WHAT IS YOUR OVERALL PERCEPTION OF THE CONSTRUCTION INDUSTRY? Too compe ve. Very had to make a pro t. Slow Were going backwards, materials are going

forward. Labor has to be cheaper to get jobs and skill is out the door. Which meansyour making lower pro t and have to getmore jobs to counter your income.

Great people in Michigan. Sorry they donthave more to build.

Needs to adopt lean construc onprac ces to be more produc ve andprovide value to owners.

It has to change. There needs to be more ofa partnership between the Owner/ Designer/Constructor, and those tradesthat work on the project. I want to seemore integra on and less con ict thatimpact the quality of the project.

A lot of companies working in the industrythat do not understand the rules of theroad and are giving the companies that

have been here for a long me, ts. It isbad, and if things dont turn around, it willtake a lot of outside contractors to getanything done right.

We are in Michigan and it sucks, tomany subcontractors in each trade tryingdesperately to stay a oat and by givingaway their work and not making anypro t (usually losing money) and thegeneral contractors/CMs accep ng theirunprofessionalism on the job as long astheir price is low. The professionalism inthis trade has GOT to be at an all- melow. I am personally embarrassed by thequality and a tudes/appearance of our

construc on industry. The sad part is thatthe GC/CM does not even care anymoreabout professionalism.

Dim Poor

Subs are busy. Pricing s ll low. More bigcontractors holding on but long standardcontractors going down and out ofbusiness, while the small ones are notgrowing to the next step. This worries mefor the future on compe ve bidding. Thenatural progression of sub-contractors ofspecialty contractors is ge ng smaller.There seems to be a gap. It is hard to ndsomeone with experience on my jobs tomanage them or provide me with qualityconsul ng. We are missing the 40- to60-year old gap of professionals that canhelp these young kids out.

Commercial construc on in the area ofaddi ons and renova ons will con nueto play a major role as buildings aremodi ed for new use. Healthcare, theenergy industry as well as other smalleremerging industries will help theconstruc on industry rebound. Residen alconstruc on will not increase un l the

Michigan economy becomes more stable,probably in about 5-10 years. Very sluggish, hopeful for more ac vity

soon. Too many unquali ed people ge ng into

the industry and giving us old mers a badrap. Architects and engineers need to doa be er job screening that they let bidtheir projects. Lately it seems that theyturn their bids out to anyone looking for amistake to get the project awarded by theowner. How is that fair to the legi matecontractor bidding work?

Costs are too high in Michigan. Generally good. Details seem to be a

problem with the ones I have workedwith or heard about.

2 IN YOUR OPINION, WHAT IS THE SINGLE BIGGEST PROBLEM OWNERSEXPERIENCE WHEN WORKING WITH THE CONSTRUCTION INDUSTRY?

Government regula ons. Material cost labor cost. Funding Workmanship The trend is prevailing wages as the

construc on bidding decreases the wagesincrease. Paying $36 + for an employee toshovel is crazy!

Too fragmented; end up gh ng each other. Communica on Change orders and addi onal design service

requests. 90% of the me the pricing isunreasonable and doesnt represent thework that has to be done. You make choicesearly in the process regarding the fundsavailable, and when you want to allocatethose funds you dont get the intendedreturn on that addi onal investmentbecause of the change order process.

They have to get over the bo om linesyndrome. You pay for what you get. Butsome owners know that and will s ll

bad-mouth builders that they did a cheap job and give the builder no me to defendthemselves when dealing with a cheapowner.

Produc vity Lack of communica on. Pro tability Not retaining employees to keep their

quality of services and losing people thatwork with people.

De ning and expressing expecta ons andunderstanding the impact their decisionshave on construc on schedules.

Penetra ng the industry. Listening to the unquali ed builder and not

their architect/engineer. Time is too long, costs are too high.

No control. Generally good. Details seem to be a

problem with the ones I have workedwith or heard about.


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Documents

CAM Biennial Business Survey 2011-2012