Most firms sharpened their business practices during the recession and are finding those lessons helpful now. "Our answer is to apply innovations and actively manage risks in subcontracting by balancing competitive conditions with financial stability," says Gary Constant, vice president of business development and preconstruction services with Denver's GH Phipps Construction Cos.

The short-term solution for most firms is to plan well and keep their good customers happy. "The construction industry needs to focus on providing exceptional customer service," says Alan Rindlisbacher, director of corporate marketing with Layton Construction Co., Salt Lake City.

Greg Schmidt, president of Denver's Saunders Construction Inc., adds, "We have shortened our business cycle. Balancing this flexibility with continued long-term thinking has allowed us to react in the short term while looking to the future."