Southfield (WWJ)  -- It's not a pretty picture for home builders in Michigan and the rest of the nation.

A new study by Grant Thornton says smaller and regional builders will continue to be acquisition targets as the industry consolidates. 

According to a Grant Thornton analysis, all major homebuilders have faced declines in revenue and margins, and the stock prices of publicly traded building companies have fallen by more than 60 percent over last year.

"Homebuilders are unique from a restructuring standpoint," said John Bittner, partner at Grant Thornton's CARS (Corporate Advisory and Restructuring Services) practice. "It's not like a manufacturing company that can quickly cut costs to improve operations and increase profitability. When a builder finds itself in distress, there are fewer options to improve cash flow short of having a fire sale on existing inventory."

Analysts say the housing downturn is becoming more widespread geographically than anyone expected a year ago.

The report says to combat issues facing the industry and remain stable, many homebuilders are focusing on providing credit to consumers, reducing inventory by marking prices to market value, and reducing development efforts or shelving projects altogether.

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