Construction Index trending up for First Quarter of 2011

Nonresidential Construction Index sees highest peaks since fourth quarter of 2007

03/03/2011


FMI, a provider of management consulting and investment banking to the engineering and construction industry, released its Nonresidential Construction Index (NRCI) report for the first quarter of 2011.

The encouraging reading of 60.8 is the highest NRCI score FMI has recorded since starting this Index in the fourth quarter of 2007; just as the economy entered what came to be known as the Great Recession. However, as usual, when FMI looked at the details for markets and backlogs, it is obvious that this isn’t a moment where the rising tide is lifting all boats. Although almost every component of the NRCI is improving, commercial, lodging and office construction still indicate slow improvement. Education construction, which has held up fairly well during the recession, is also expected to be slow while states and local governments work to balance their battered budgets.

According to the construction industry executives who serve as panelists for the NRCI, the prospects for hiring are improving significantly, especially when compared with 2009 and 2010 results. For 2011, 37% of panelists indicated they expect to hire up to 5% more full-time, salaried staff. Nonetheless, 20% said they still expect staff reductions in 2011.

Reducing government regulatory red tape is becoming a hot topic in Congress at the start of the new session. Contractors are very familiar with these issues, and panelists indicated delays caused by red tape could result in between 5% and 10% delays on projects and cost the industry billions of dollars a year in what amounts to a “hidden tax.”

- Edited by Gust Gianos, Consulting-Specifying Engineer, www.csemag.com



Product of the Year
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
40 Under Forty: Get Recognized
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
MEP Giants Program
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
September 2018
Power boiler control, Product of the Year, power generation,and integration and interoperability
August 2018
MEP Giants, lighting designs, circuit protection, ventilation systems, and more
July 2018
Integrating electrical and HVAC systems, emerging trends in fire, life safety, ASHRAE 90.4
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
click me