Spring 2012 issue of Horizons

Construction

Inching Toward a Recovery By Frank Hogg, CPA

local government spending. This public spending had helped to sustain many contractors during the early part of the construction slowdown.

While the overall economy has shown some signs of improving, the construction industry remains in very difficult economic times. While many agree that the recovery will be far from normal, the general consensus is a long and slow recovery of construction markets. Funding for many projects remains a challenge, resulting in cancelled projects or delays in getting started. In addition, increased budget constraints are expected to result in decreased federal, state and

Cash Flow Management As the construction economy slowly moves toward recovery, big challenges still face contractors. Maintaining a strong cash flow remains critical. Cash is king and more contractors will go out of business because of poor cash flow than from a lack of work or fading profits.

www.rubinbrown.com

40