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 9, 2011
Hardinger joins Ryan Companies as vice president, mission critical
He will lead the Ryan team responsible for building and developing data centers and other mission-critical projects, and will oversee business development, client relationships, executive level communications and overall marketing strategies for the division.
| Sep 8, 2011
Boldt Co. reaches 4 million hours with a lost time accident
Four million hours. That’s an average of over 2,600 continuous safe work hours completed by every employee—the equivalent of one person working 24 hours a day for over 450 years.
| Sep 7, 2011
KSS Architects wins AIA NJ design award
The project was one of three to win the award in the category of Architectural/Non-Residential.
| Aug 31, 2011
Wythe Confectionary renovation in Brooklyn completed
Renovation retains architectural heritage while reflecting a modern urban lifestyle.
| Aug 31, 2011
Balfour Beatty Construction hires Portnoy to lead public-private partnerships
Portnoy will help lead and coordinate the pursuit and delivery of public-private partnerships within all of the company’s U.S. regions.
| Aug 24, 2011
Deadline Extended: 2012 "Best AEC Firms to Work For” Awards
We’re looking for firms that create truly positive workplaces for their AEC professionals and support staff. In other words, this awards program will recognize those AEC firms that nurture and develop their most valuable asset—their people.
| Aug 19, 2011
How and why AEC professionals choose flooring systems
Design and construction professionals who completed our flooring survey had strong opinions about their preferred flooring type.
| May 25, 2011
Register today for BD+C’s June 8th webinar on restoration and reconstruction projects
Based on new and award-winning building projects, this webinar presents our “expert faculty” to examine the key issues affecting project owners, designers and contractors in case studies ranging from gut renovations and adaptive reuses to restorations and retrofits.