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
| Sep 28, 2011
GBCI announces LEED fellow class of 2011
LEED Fellows represent green building industry's most accomplished professionals.
| Sep 28, 2011
Opus Group awarded contract for new Church & Dwight Co. headquarters
The campus will include two 125,000-sf Class A, energy-efficient office buildings that will be designed and constructed with sustainable practices and elements.
| Sep 27, 2011
FDI hires Allen to round out project team
Allen's experience includes managing several multi-million dollar facilities projects for Stanford University.
| Sep 19, 2011
Portland team hired as LEED and commissioning consultants for $5.5B downtown sustainable project in Qatar
The $5.5 billion sustainable downtown regeneration project underway by Msheireb Properties will transform a 76 acres site at the centre of Doha, Qatar’s capital city, recreating a way of living that is rooted in Qatari culture, attracting residents back to the city center and reversing the trend for decentralization.
| Sep 14, 2011
USGBC L.A. Chapter's Green Gala features Jason McLennan as keynote speaker
The Los Angeles Chapter of the nonprofit USGBC will launch its Sustainable Innovation Awards this year during the chapter's 7th Annual Green Gala on Thursday, November 3.
| Sep 14, 2011
Lend Lease’s role in 9/11 Memorial & Museum
Lend Lease is honored to be the general contractor for the National September 11 Memorial & Museum project at the World Trade Center site in New York City.
| Sep 14, 2011
Thornton Tomasetti’s Poon named to the Council on Tall Buildings and Urban Habitat’s Board of Trustees
During his 30-plus years of experience, Poon has been responsible for the design and construction of super high-rise structures, mixed-used buildings, hotels, airports, arenas and residential buildings worldwide.
| Sep 12, 2011
LACCD’s $6 billion BIM connection
The Los Angeles Community College District requires every design-build team in its massive modernization program to use BIM, but what they do with their 3D data after construction is completed may be the most important change to business as usual.
| Sep 12, 2011
PVs play new roles as a teaching tool
Solar installations are helping K-12 schools around the country save money and teach students the intricacies of renewable energy sources.
| Sep 12, 2011
Living Buildings: Are AEC Firms up to the Challenge?
Modular Architecture > You’ve done a LEED Gold or two, maybe even a LEED Platinum. But are you and your firm ready to take on the Living Building Challenge? Think twice before you say yes.
