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
| Feb 14, 2012
SAIC selected for architectural and engineering design services at Lajes Field, Azores
SAIC’s services will include a broad variety of new construction projects and maintenance and repair projects
| Feb 14, 2012
Skanska promotes Aparicio and hires Leintz in Southern California
Aparicio and Leintz are both based in Skanska’s Los Angeles office.
| Feb 14, 2012
The Jackson Laboratory announces Gilbane Building Co. as program manager for Connecticut facility
Gilbane to manage program for new genomic medicine facility that will create 300 jobs in Connecticut.
| Feb 14, 2012
Thornton Tomasetti names Al Hashimi vice president for its Middle East Operations
Al Hashimi is joining the company to help expand Thornton Tomasetti’s business in the region and support clients locally.
| Feb 13, 2012
WHR Architects renovation of Morristown Memorial Hospital Simon Level 5 awarded LEED Gold
Located in the Simon Building, which serves as the main entrance leading into the Morristown Memorial Hospital campus, the project comprises three patient room wings connected by a centralized nursing station and elevator lobby.
| Feb 13, 2012
Center for Sustainable Building Research launches CommercialWindows.org
Resource aims at reducing commercial operating costs and energy consumption.
| Feb 13, 2012
New medical city unveiled in Abu Dhabi
SOM’s design for the 838-bed, three-million-square foot complex creates a new standard for medical care in the region.
| Feb 10, 2012
Task force addresses questions regarding visually graded Southern Pine lumber
Answers address transition issues, how to obtain similar load-carrying capabilities, and why only some grades and sizes are affected at this time.
| Feb 10, 2012
Atlanta Housing Authority taps Johnson Controls to improve public housing efficiency
Energy-efficiency program to improve 13 senior residential care facilities and save nearly $18 million.
| Feb 10, 2012
Besculides joins New York Office of Perkins Eastman as associate principal
Besculides joins with more than 17 years’ experience in design, business development, and account management for the government, healthcare, and corporate practice areas with a particular focus on the financial and media sectors.
