Contractors Don't Expect Growth In '10
Contractors are not building up their hopes for the construction industry to turn around in 2010, according to a survey released by the Associated General Contractors of America.
Nearly nine of ten contractors surveyed said they do not expect a construction recovery in 2010.
Contractors are slimming their pricing and profit margins; 81 percent of firms surveyed said they have cut profit margins just to stay competitive. About 10 percent of respondents said margins have been cut to the point where they are losing money on projects.
Almost three-quarters of firms said they have laid off staff.
The federal stimulus funding could be the one bright spot in the survey as 46 percent of contractors said stimulus funding helped retain some employees that would have been laid off otherwise.
About 700 contractors were surveyed. Respondents expect that manufacturing and retail construction will drop in 2010, but publicly funded infrastructure and utility projects will improve or remain stable.
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