The business climate for the construction industry has deteriorated in the last two years, with the number of companies losing money up 10 percent, Bonadio & Co. LLP announced Monday.
Some 24 percent of approximately 100 respondents to Bonadio’s 2012 Upstate New York Contractors State of the Industry study are losing money, up from 14 percent in the previous survey in 2010, officials said.
More companies are competing for fewer dollars, and many are looking for ways to become more competitive by expanding services or market areas, trimming costs and reducing bid prices, the study found.
“Construction companies in Upstate New York continue to feel the effects of the economic downturn,” said Scott Cresswell, a partner in Bonadio’s construction division, said in a statement.
“Contractors are feeling pessimistic about the economy as a whole, but the good news is they’re showing more enthusiasm when it comes to projecting revenue.”
Mergers and acquisitions are increasing, the survey shows. The number of family-owned businesses fell to 47 percent in 2012 from 59 percent in 2010, and 27 percent of the respondents say they have plans within five years to sell or transition their business.
Some 75 percent of contractors responding reported success rates of less than 25 percent in bidding for business, compared with 60 percent in 2010.
(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email firstname.lastname@example.org.