Ailing builders prop up markets with new niches; smaller jobs, farther away pad local contractors' profits. (Pittsburgh, Pennsylvania) (Special Report: Construction & Design) (Industry Overview)

PITTSBURGH -- James Mitnick, vice president of Turner Construction Co. and head of its Pittsburgh office, describes the region's commercial construction market in one word: "stagnant."

"There's no commercial market for practical purposes," said Mr. Mitnick. "The market is overbuilt, and there are low rents."

That has meant lower revenue for the local office of the New York City-based construction giant. Mr. Mitnick expects the branch to generate $45 million in revenue this year, down 25 percent from $60 million reported last year.

Turner's situation is not unique among the area's larger construction contractors, many of which enjoyed a steady flow of revenue in recent years from work on the $700 million Pittsburgh International Airport. With no major building projects looming amid a generally sluggish economy, some contractors are bidding smaller jobs or looking beyond traditional geographic markets.

Turner, for instance, is finding itself going after smaller renovation projects and seeking jobs in places it normally wouldn't, such as West Virginia.

"If the market (here) was terrific, then I wouldn't pursue (those opportunities)," said Mr. Mitnick, who …