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 23, 2011
Call for Entries: 2011 Building Team Awards, Deadline: March 25, 2011
The 14th Annual Building Team Awards recognizes newly built projects that exhibit architectural and construction excellence—and best exemplify the collaboration of the Building Team, including the owner, architect, engineer, and contractor.
| Feb 23, 2011
Green building on the chopping block in House spending measure
Bryan Howard, Legislative Director of the U.S. Green Building Council, blogs about proposed GOP budget cuts that could impact green building in the commercial sector.
| Feb 22, 2011
LEED Volume Program celebrates its 500th certified Pilot Project
More than 500 building projects have certified through the LEED Volume Program since the pilot launched in 2006, according to the U.S. Green Building Council. The LEED Volume Program streamlines the certification process for high-volume property owners and managers, from commercial real estate firms, national retailers and hospitality providers, to local, state and federal governments.
| Feb 15, 2011
New 2030 Challenge to include carbon footprint of building materials and products
Architecture 2030 has just broadened the scope of its 2030 Challenge, issuing an additional challenge regarding the climate impact of building products. The 2030 Challenge for Products aims to reduce the embodied carbon (meaning the carbon emissions equivalent) of building products 50% by 2030.
| Feb 15, 2011
New Urbanist Andrés Duany: We need a LEED Brown rating
Andrés Duany advocates a "LEED Brown" rating that would give contractors credit for using traditional but low cost measures that are not easy to quantify or certify. He described these steps as "the original green," and "what we did when we didn't have money." Ostensibly, LEED Brown would be in addition to the current Silver, Gold and Platinum ratings.
| Feb 14, 2011
Sustainable Roofing: A Whole-Building Approach
According to sustainability experts, the first step toward designing an energy-efficient roofing system is to see roof materials and systems as an integral component of the enclosure and the building as a whole. Earn 1.0 AIA/CES learning units by studying this article and successfully completing the online exam.
| Feb 11, 2011
Four Products That Stand Up to Hurricanes
What do a panelized wall system, a newly developed roof hatch, spray polyurethane foam, and a custom-made curtain wall have in common? They’ve been extensively researched and tested for their ability to take abuse from the likes of Hurricane Katrina.
| Feb 11, 2011
RS Means Cost Comparison Chart: Office Buildings
This month's RS Means Cost Comparison Chart focuses on office building construction.
