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
| Oct 18, 2010
World’s first zero-carbon city on track in Abu Dhabi
Masdar City, the world’s only zero-carbon city, is on track to be built in Abu Dhabi, with completion expected as early as 2020. Foster + Partners developed the $22 billion city’s master plan, with Adrian Smith + Gordon Gill Architecture, Aedas, and Lava Architects designing buildings for the project’s first phase, which is on track to be ready for occupancy by 2015.
| Oct 13, 2010
Editorial
The AEC industry shares a widespread obsession with the new. New is fresh. New is youthful. New is cool. But “old” or “slightly used” can be financially profitable and professionally rewarding, too.
| Oct 13, 2010
Test run on the HP Z200 SFF Good Value in a Small Package
Contributing Editor Jeff Yoders tests a new small-form factor, workstation-class desktop in Hewlett-Packard’s line that combines performance of its minitower machine with a smaller chassis and a lower price.
| Oct 13, 2010
Prefab Trailblazer
The $137 million, 12-story, 500,000-sf Miami Valley Hospital cardiac center, Dayton, Ohio, is the first major hospital project in the U.S. to have made extensive use of prefabricated components in its design and construction.
| Oct 13, 2010
Thought Leader
Sundra L. Ryce, President and CEO of SLR Contracting & Service Company, Buffalo, N.Y., talks about her firm’s success in new construction, renovation, CM, and design-build projects for the Navy, Air Force, and Buffalo Public Schools.
| Oct 13, 2010
Hospital tower gets modern makeover
The Wellmont Holston Valley Medical Center in Kingsport, Tenn., expanded its D unit, a project that includes a 243,443-sf addition with a 12-room operating suite, a 36-bed intensive care unit, and an enlarged emergency department.
| Oct 13, 2010
Modern office design accentuates skyline views
Intercontinental|Exchange, a Chicago-based financial firm, hired design/engineering firm Epstein to create a modern, new 31st-floor headquarters.
| Oct 13, 2010
Hospital and clinic join for better patient care
Designed by HGA Architects and Engineers, the two-story Owatonna (Minn.) Hospital, owned by Allina Hospitals and Clinics, connects to a newly expanded clinic owned by Mayo Health System to create a single facility for inpatient and outpatient care.
| Oct 13, 2010
Biloxi’s convention center bigger, better after Katrina
The Mississippi Coast Coliseum and Convention Center in Biloxi is once again open for business following a renovation and expansion necessitated by Hurricane Katrina.
| Oct 13, 2010
Tower commemorates Lewis & Clark’s historic expedition
The $4.8 million Lewis and Clark Confluence Tower in Hartford, Ill., commemorates explorers Meriwether Lewis and William Clark at the point where their trek to the Pacific Ocean began—the confluence of the Mississippi and Missouri Rivers.
