February 2010

National Construction Economic Update
The construction market ended 2009 in as bad a shape as it has been in for almost two decades, with non-residential construction plummeting and housing construction at record post-World War II lows. For the overall economy, however, the year ended with a host of indications that recession was morphing into recovery. Some of the boldest pronouncements came from the National Association of Business Economists (NABE). NABE conducted its annual meeting in October in St. Louis, and made headlines by declaring that the Great Recession was over. On the heels of their annual meeting NABE published its 2010 outlook. The forecast contained a number of major points. Read more...

Retooling for the Recovery Webinar
Tuesday, February 23, 2010
Is the construction industry on the road to recovery? Is your company positioned to make the most of it? "Retooling for the Recovery" is the first presentation in our Contractor Success Webinar Series, and we will discuss what can be done today to make your company stronger now and better positioned for the industry recovery. We will provide operational and financial strategies for navigating an economic downturn, working with banks and sureties, improving your balance sheet, right sizing, maintaining profitability, maximizing cash flow and more. We will present a contractor-specific toolbox of ideas for consideration to maximize the potential for your organization to maintain financial stability now and be poised to thrive with the recovery.  Somerset CPAs Construction & A/E Team and Associated Construction Publications invite you to participate.  Details and Registration...

Surety Market Update
In early fall 2009 the National Association of Surety Bond Producers (NASBP) held its national seminar in Washington, D.C., and, as you might imagine, the mood was less than cheery. The association released its mid-year and 2009 projected results, which showed a 28.9% loss ratio, more than double the loss ratio for 2008. Beyond the negative results, the prevailing feeling that losses will continue to mount throughout the coming year influenced the mood. After five straight years of significant profits, the surety industry is bracing for a difficult year in 2010 and is making the kinds of adjustments that usually accompany a recessionary cycle. Surety company executives are concerned about the potential problems looming on the horizon, like a shortage of new profitable work, low backlog, shaky project financing, a conservative banking industry and unresponsive contractor business strategies. Contractors who work to address these concerns will be best positioned to expand their surety programs in 2010. Read more...

TGIF-F! (Timberline 'Gems of Invaluable Facts' Fridays)
If your company uses Timberline software, and you want to increase your utilization, productivity, efficiency and profitability, then please join us for our TGIF-F meetings. Jack Orth of Somerset’s Information Solutions Team will host four TGIF-F lunch meetings during 2010 in our Indianapolis conference center. Jack has been working with Timberline in the construction and real estate industries for over 25 years. The kick-off meeting is May 7, 2010, from 11:30 a.m. to 1:00 p.m., and the topic will be "Data Archiving - A Tune Up for Timberline." Register today...

Not using Timberline? If you are currently using a different software but would like to learn about Timberline to see if it will be a fit for your company, please join us for a free demonstration on Tuesday, March 23, 2010, from 8:00 a.m. to 9:30 a.m. Jack Orth will show you the highlights of Timberline and answer any questions you have. Register today...

Somerset Construction & A/E Team News

We recently launched the 2010 Indiana Construction Industry Financial Performance and Salary & Benefits Survey. Participants will receive the results, which provide valuable information about the financial standing of the Indiana construction community, salaries and benefits by position, balance sheets, statements of operations and other key metrics. We urge your firm to complete the survey. Click here to begin your survey now. Please contact us with any questions.

Somerset is proud to be a sponsor and active member of the Indiana Subcontractors Association. Our Construction & A/E Team will be exhibiting at the annual "Construction Networking Event of the Year" on Thursday, February 25, 2010, at the Indiana Convention Center. Please stop by and see us at Booth #57. Please visit ISA's web site for details.

Super Hero CPAs? Okay, we don’t leap tall buildings in a single bound, but we are Experts in Government Contract Accounting and Overhead Rates--you might just call that Super! We offer customized services for A/E firms ranging from consulting on government contract accounting to FAR overhead rate audits and much more. Our proven reputation and results in the A/E industry can help your firm survive today and thrive tomorrow. Please contact Chris Mayfield for a free introductory consultation.

Work-In-Process is provided by Somerset CPAs for our clients and other interested persons upon request. For additional information on the issues discussed, please contact Ken Hedlund, Jay Feller, Steve George, Chris Mayfield or Rebecca Ogle of our Construction & A/E Team. Learn more about our Construction & A/E Team by clicking the photo to the left to watch our video. Since technical information is presented in generalized fashion, no final conclusion on these topics should be made without further review. This document is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer.