July 2012

ParenteBeard LLC and FMI Consulting have developed a working relationship that we feel is beneficial to our clients and friends in the construction industry. FMI is a well known consulting firm that works closely with the construction industry throughout the United States. FMI periodically provides information that may be pertinent to you and your business. Here are two of their latest reports.

The key roles a CFO can play increase asset values and mitigate liabilities, adding significant value to any contractor. "Twelve Essential Roles for CFOs in 2012” is an article written by Lee Ackerman, Director of Audit and Accounting with Brock and Company and Ken Roper, a Principal with FMI Corporation. This article was recently published in the FMI Quarterly.

Article Excerpt: The CFO is often the last line of defense in avoiding crippling errors and omissions and is the driving force for positive changes to enhance productivity. Now more than ever, CFOs possess extensive financial skills and capabilities beneficial to the construction industry. Effectively implementing the right roles, combined with exceptional performance, helps contractors create a competitive advantage. CFOs are smart, hard-working and dedicated managers who have many attributes that may be leveraged through training and development. These leaders and managers set standards, provide credibility to outside parties, and interface with owners and managers with respect to the operational aspects of the business.

Read the full report here.

Just released:   2nd Quarter FMI Construction Outlook

Economic forecasting is a tricky business even in normal times, and the current national and global economy is anything but normal. Nonetheless, FMI’s forecast calls for more slow growth for the construction industry. Despite the constant confusion of news from Europe and uncertainty and inaction in the U.S. Congress, there are some positive signs in the economy. Our forecast calls for 3% growth by the end of 2012 and another 7% in 2013 to $882.4 billion. That’s $92.6 billion more than the lows of 2011. As one might expect, improving housing construction is helping to lead the way, especially multi-family housing, but power construction is another strong point, and even commercial construction will show signs of rising from its slumber. Nonetheless, slow growth may be even more challenging than either large market drops or boom times, requiring improved management, precision market research and creative business development.

Read the full report here.

Reprinted with permission from FMICorporation, 919.787.8400. For more information, visit www.fminet.com or call Sarah Avallone at 919.785.9221.

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