Survey says: Long Island-area construction firms lack planning

Long Island Business News, Jun 24, 2009 by David Winzelberg

A just-released report on the state of the area's construction industry found most companies don't have plans for succession, marketing or in-house training.

Lake Success-based Grassi & Co. partnered with New York Construction magazine on the report that surveyed construction company officials on the state of their business, including organizational structure, contract types, training and technology, profitability and access to capital, financial tools, business development and future vision.

The report found that 60 percent of respondents didn't have a succession or marketing plan, and 57 percent of the companies didn't have in-house training programs for employees.

Grassi & Co. chief Lou Grassi said the results uncovered the need for implementing best practices that increase reliance on sophisticated planning tools and programs that focus on ways to grow the business over time.

The Grassi survey showed that change order disputes are still the biggest challenge to profitability and the greatest source of lawsuits against construction companies.