The Challenges in the Midwest
by Tom Doyle
Real Estate/Construction Advisor, Summer 2007 Issue

I'm not one to wax poetic about summer, but being based in southeastern Michigan, I do look forward to attending Tiger games, being outside, hitting some golf balls, and enjoying increasingly abundant amounts of daylight.

All this gives me a sense of optimism — at least until we look at the real estate and construction numbers in the Midwest: increasing numbers of housing foreclosures, contractors moving out of state to get work and stay in business, new housing starts still declining, and sales of existing homes languishing. Our real estate and construction clients face greater economic challenges than they have in years — and indicators suggest it may become worse before it gets better. That’s something we in the Real Estate and Construction Practice at Plante & Moran really do lose sleep over.

So how can we help you make lemonade out of lemons from the accounting side of the equation? Here are a few thoughts.

• We’re hearing of contractors moving out of state to follow other geographic growth, and you have to do what you have to do to survive. From a tax perspective, there are implications for this, which we discuss in this issue.

• Green and sustainable work is booming — our guest columnist, Helen Kessler, has identified the core issues supporting the tipping point of this force, and why it’s important to pay attention to it.

• There are new tax regulations that increase deductions for alternative fuels — a good read especially with increasing prices at the gas pump.

• There are more resources online to look into in order to connect with this industry, such as websites for LEED, USGBC (the U.S. Green Building Council), and the Chicago Center for Green Technology (for the City of Chicago, whose mission is to be the greenest city in the United States).

• We were absolutely delighted that our white paper on the opportunities in the Midwest caught the attention of Crain’s Detroit Business in Mary Kramer’s column; if you’ve not seen it, please search on Crain’s website or contact me, and I’ll send you a copy.

As always, we appreciate your business, your referrals, and the sense of community, which matters more than ever in challenging times. Please remember, we’re here to help you increase your success. Please feel free to pick up the phone or send me an e-mail. I’m always glad to hear from you.