NRCI: Economic recovery slow for nonresidential construction

Nonresidential Construction Index: the slow recovery continues, says report.

05/25/2011


FMI, a large provider of management consulting and investment banking to the engineering and construction industry, has announced the release of its Nonresidential Construction Index (NRCI) report for the second quarter of 2011.

In spite of adjustments made to accommodate the rising cost of materials, the NRCI moved up 1.4 points to 58.7 for the second quarter. For the fifth quarter in a row, the Index has remained at least slightly in positive territory. The slow, uneven recovery of nonresidential construction mirrors the mixed signals from the national economy, where consumer spending begins to improve just as gas prices skyrocket, and automotive sales start to bounce back as an unparalleled disaster in Japan takes billions of dollars in parts and automotive manufacturing offline.

With the notable exceptions of increasing material and labor costs, most of the major components of the NRCI improved slightly or stayed about the same as last quarter. However, current issues for the Q2 NRCI indicate some challenges to come for nonresidential construction. For instance, 86.5 percent of NRCI panelists favor severe cuts in infrastructure spending if it will help bring the deficit down and promote sustainable government spending even though those contractors stand to lose a lot of potential work. Panelists expect threats and maybe some future opportunities as the markets begin to feel the effects of multiple natural disasters and political upheaval in the Middle East and Northern Africa.

In the meantime, panelists continue to work harder to improve their backlogs, and that effort includes maintaining good relationships with their customers. In this case, the challenges include keeping those customers in the face of low-bid competitors as loyalty is challenged when owners can only see low prices. Most panelists expect loyal customers to return as the economy improves, but 26 percent expect to be doing more work with new customers after the recession.

Download the complete NRCI report here.



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Robotic safety, collaboration, standards; DCS migration tips; IT/OT convergence; 2017 Control Engineering Salary and Career Survey
Integrated mobility; Artificial intelligence; Predictive motion control; Sensors and control system inputs; Asset Management; Cybersecurity
Big Data and IIoT value; Monitoring Big Data; Robotics safety standards and programming; Learning about PID
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This article collection contains several articles on how automation and controls are helping human-machine interface (HMI) hardware and software advance.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me