The most extensive ongoing survey of Michigan's construction industry was released in a report last week, with results that reflect an uncertain statewide economy, but a glint of hope for future work prospects.

Conducted by the Construction Association of Michigan (CAM), the Biennial Business and Owner Surveys examined activity in 2005 and the outlook for 2006.

"Results indicate that construction work opportunities are holding steady, client satisfaction is up, and new construction continues to lead work opportunities," said CAM Chairman Frank Nutt, Jr. "However, those surveyed continue to express concerns shared with many other industries: Will there be an adequate labor supply to meet the needs of the marketplace? Will there be new business ventures in Michigan that will generate new construction work?

"Who will succeed when competition for work in our market is tighter than ever before?"

CAM, along with its co-sponsor, Plante & Moran, have been conducting this questionnaire for 14 years. The business survey utilized a sampling of CAM's 3,700 members, which include contractors, suppliers and legal and design services. For the owner business survey, 2,500 randomly selected owners provided an "impressive" response rate, according to CAM, measuring their opinion in three categories: construction outlook, financial health and industry perception.

Following are some highlights of the business (contractors, suppliers, architects, engineers) survey:

• Encouragingly, 63 percent of those responding to CAM's survey reported that work volume rose or stayed the same over the past 12 months. Only 11 percent said work dropped more than 20 percent during that period.
• Difficulty in finding skilled workers is not as large a concern as it was in 2001. When asked if their company was having difficulty finding skilled workers, 64 percent said "yes" in 2001 - 41 percent said "yes" in 2005.
• New construction (23 percent) slightly outpaced renovation (21 percent) in the top five areas that are providing work. Retrofits, additions and maintenance followed close behind. The top five categories of construction work include office buildings, educational/ cultural/ scientific, retail, transportation/industrial and health care.
• What are the responding companies concerned about? The state's "economic decline" topped the list, at 26 percent. That was followed by "competition" (21 percent) and "sources of future work" (17 percent). CAM pointed out that in the busy year of 2001, concern over "sources of future work" was still similar to today's level, 13 percent.
• Cash flow - critical to any business - was actually better in 2005 than four years ago for respondents. Only 21 percent marked "better" in 2001 compared to 2000 - while 31 percent said their cash flow had improved in 2005 over 2004.
• When 94 percent of respondents report increases in material prices, you know it's a trend. Material cost increases for fuel, cement, lumber and other materials have been well-documented around the world.
• *With a few exceptions, the Michigan construction industry is very slow-moving when it comes to embracing the Internet and the use of web sites. The survey found only 51 percent of companies responding to the survey using a web site.
• If you've ever wondered about the political persuasions of construction-related employers, the survey found that 65 percent considered themselves Republican, while 10 percent said Democrat. The rest were Independent (9 percent), no preference or no answer.
  
  And the owners, developers and construction clients weigh in, too.

CAM provided this summary: "Although those answering the surveys voiced several economic concerns, the overall results indicate that construction work opportunities are holding steady in some areas and actually rising in certain portions of the state. Client satisfaction ratings are up, new construction continues to dominate work opportunities and owners stated that they still plan to build new and larger projects.

"However, many in the design and construction industries who participated in this survey did express apprehension about the future, a feeling that is shared with many other industries. The survey showed that many contractors are handling that apprehension by forming mergers or expanding their business range by seeking work in other market areas."

"Successful organizations will likely adapt and change and will try to focus on what they can control and not what the environment dictates."

Thomas Doyle, a partner of Plante-Moran, the certified public accounting, and management consulting firm that partnered with CAM to produce the survey, said, "Construction professionals are the ultimate entrepreneurs and I believe the profession will meet these challenges."