The FMI Nonresidential Construction Index Report (NRCI) for Q4 2015 says that nonresidential construction is experiencing a slowdown. The NRCI dropped four points to 59.5, the lowest score since Q4 in 2013.
Panelists displayed a declining outlook for the overall economy, which was down 12.3 points to 58.3 from Q3. The report found that the expectations of activity in economic sector and the expected change in backlog scores also fell, and the cost of construction material rose.
“Economic recovery momentum is losing steam and rising costs in labor and materials start to put a load on the industry,” Chris Daum, President and CEO of FMI, said in a statement. “Next year will likely be more challenging for industry growth than 2015. Firms that excel at recruiting and training the most skilled workforce will have a strategic edge in the marketplace.”
Key takeaways in the Q4 NRCI:
· The overall economy where panelists do business is down. Panelists’ business is slowing down with a grim outlook of the overall economy.
· Panelists’ construction business is slipping. Although the panelists’ expectation of their construction activities slipped by 5.8 points to 69.9, it shows residual recovery momentum.
· There is an expected drop in backlog. The measure of expected change in backlog dropped to 62.2 from last quarter’s 68.2, a median of the past 12 months.
· The cost of construction materials and labor is rising. The cost of labor and materials continues to go higher. Generally, it is expected that costs will rise as business improves, thus holding down the overall NRCI index number.
Related Stories
| Apr 29, 2014
Best of Canada: 12 projects nab nation's top architectural prize [slideshow]
The conversion of a Mies van der Rohe-designed gas station and North Vancouver City Hall are among the recently completed projects to win the 2014 Governor General's Medal in Architecture.
| Apr 29, 2014
USGBC launches real-time green building data dashboard
The online data visualization resource highlights green building data for each state and Washington, D.C.
| Apr 28, 2014
Welcome to the Hive: OVA designs wild shipping container hotel for competition
Hong Kong-based OVA envisions a shipping-container hotel, where rooms could be removed at will and designed by advertisers.
Smart Buildings | Apr 28, 2014
Cities Alive: Arup report examines latest trends in urban green spaces
From vertical farming to glowing trees (yes, glowing trees), Arup engineers imagine the future of green infrastructure in cities across the world.
| Apr 25, 2014
A radiant barrier FAQ: Everything you wanted to know but were afraid to ask
There are many examples of materials developed for the space program making their way into everyday life and radiant barriers are just that. SPONSORED CONTENT
| Apr 24, 2014
Unbuilt and Famous: LEGO releases box set of Bjarke Ingels' LEGO museum
LEGO Architecture has created a box set that customers can use to build replicas of the LEGO Museum, which is not yet built in real life. The museum, designed by the Bjarke Ingels Group, will commemorate the history of LEGO.
| Apr 23, 2014
Ahead of the crowd: How architects can utilize crowdsourcing for project planning
Advanced methods of data collection, applied both prior to design and after opening, are bringing a new focus to the entire planning process.
| Apr 23, 2014
Developers change gears at Atlantic Yards after high-rise modular proves difficult
At 32 stories, the B2 residential tower at Atlantic Yards has been widely lauded as a bellwether for modular construction. But only five floors have been completed in 18 months.
| Apr 23, 2014
Experimental bot transfers CAD plans onto construction sites
The Archibot is intended to take technical data and translate it into full-scale physical markings on construction sites.
| Apr 23, 2014
Mean and Green: Top 10 green building projects for 2014 [slideshow]
The American Institute of Architects' Committee on the Environment has selected the top ten examples of sustainable architecture and ecological design projects that protect and enhance the environment. Projects range from a project for Portland's homeless to public parks to a LEED Platinum campus center.