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
Contractors | Mar 12, 2024
The average U.S. contractor has 8.1 months worth of construction work in the pipeline, as of February 2024
Associated Builders and Contractors reported that its Construction Backlog Indicator declined to 8.1 months in February, according to an ABC member survey conducted Feb. 20 to March 5. The reading is down 1.1 months from February 2023.
Museums | Mar 11, 2024
Nebraska’s Joslyn Art Museum to reopen this summer with new Snøhetta-designed pavilion
In Omaha, Neb., the Joslyn Art Museum, which displays art from ancient times to the present, has announced it will reopen on September 10, following the completion of its new 42,000-sf Rhonda & Howard Hawks Pavilion. Designed in collaboration with Snøhetta and Alley Poyner Macchietto Architecture, the Hawks Pavilion is part of a museum overhaul that will expand the gallery space by more than 40%.
Affordable Housing | Mar 11, 2024
Los Angeles’s streamlined approval policies leading to boom in affordable housing plans
Since December 2022, Los Angeles’s planning department has received plans for more than 13,770 affordable units. The number of units put in the approval pipeline in roughly one year is just below the total number of affordable units approved in Los Angeles in 2020, 2021, and 2022 combined.
BIM and Information Technology | Mar 11, 2024
BIM at LOD400: Why Level of Development 400 matters for design and virtual construction
As construction projects grow more complex, producing a building information model at Level of Development 400 (LOD400) can accelerate schedules, increase savings, and reduce risk, writes Stephen E. Blumenbaum, PE, SE, Walter P Moore's Director of Construction Engineering.
AEC Tech | Mar 9, 2024
9 steps for implementing digital transformation in your AEC business
Regardless of a businesses size and type, digital solutions like workflow automation software, AI-based analytics, and integrations can significantly enhance efficiency, productivity, and competitiveness.
Sports and Recreational Facilities | Mar 7, 2024
Bjarke Ingels’ design for the Oakland A’s new Las Vegas ballpark resembles ‘a spherical armadillo’
Designed by Bjarke Ingels Group (BIG) in collaboration with HNTB, the new ballpark for the Oakland Athletics Major League Baseball team will be located on the Las Vegas Strip and offer panoramic views of the city skyline. The 33,000-capacity covered, climate-controlled stadium will sit on nine acres on Las Vegas Boulevard.
Adaptive Reuse | Mar 7, 2024
3 key considerations when converting a warehouse to a laboratory
Does your warehouse facility fit the profile for a successful laboratory conversion that can demand higher rents and lower vacancy rates? Here are three important considerations to factor before proceeding.
Shopping Centers | Mar 7, 2024
How shopping centers can foster strong community connections
In today's retail landscape, shopping centers are evolving beyond mere shopping destinations to become vibrant hubs of community life. Here are three strategies from Nadel Architecture + Planning for creating strong local connections.
Market Data | Mar 6, 2024
Nonresidential construction spending slips 0.4% in January
National nonresidential construction spending decreased 0.4% in January, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.190 trillion.
MFPRO+ Research | Mar 6, 2024
Top 10 trends in senior living facilities for 2024
The 65-and-over population is growing faster than any other age group. Architects, engineers, and contractors are coming up with creative senior housing solutions to better serve this burgeoning cohort.
