CFMA

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CFMAS Construction Economic Outlook 6 Month
UpdateMike Ellis Moss Adams LLP
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Impact on Contractors

• Declining backlog and increasing competition
• Credit markets, falling tax revenues
• Decreasing profits
• Faster decline in GP vs. OH costs
• Tightened standards by creditors
• Covenants, interest rates, maturities, amounts
• Tightened standards by sureties
• Financial ratios, areas of expertise, character
  scrutiny

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Operational Strategies

• Under promise, over deliver
• Focus on balance sheet strength
• Ratios, liquidity, distributions, capital
• Manage overhead costs tightly
• Dial in on maximum efficiencies
• Communicate constantly
• Outlast your competition!