Despite operating in a weak economy and a development-challenged region, people in the Upstate construction industry said they are holding steady.

According to a recent survey by the Bonadio Group, construction-industry officials remain cautiously optimistic but have concerns when it comes to areas such as rising health-care costs, workers' compensation issues, higher fuel prices and increased material costs.

The Bonadio Group said 94 percent of the companies polled made a profit in 2006 and 2007 and expect to do so again this year. Some 65 percent are predicting an increase in revenues this year.

"We found through this year's study that despite a slow economy, most construction companies are making a profit and are still optimistic about the future," said James Keefe, Bonadio Group partner. "This year, many of the companies that participated are turning their attention to profit improvement and optimization of cash flow, as well as talent recruitment and retention."

The Bonadio Group identified a few ways for construction companies to improve their bottom line, including being more active in joint ventures.

Thirty-four percent of the respondents currently participate in joint ventures.

Bonadio also suggested long-term borrowing to fund equipment purchases. Only 20 percent of companies do that right now, according to the survey results.

"The results we compiled from this year's survey provide contracting and construction executives with critical information for growing their businesses in a slow economy," Keefe said.