by Brianna Crandall — September 11, 2013—FMI , a nationwide provider of management consulting and investment banking to the engineering and construction industry for 60 years, has announced the release of its 2013 Third Quarter Nonresidential Construction Index report. The NRCI score of 60.3 is a .2 point improvement over the second quarter (Q2) of 2013.
This year’s score remains the highest for the NRCI index since Q1 2009. Click on graphic to enlarge.
Although the numbers are not drastically rising, the sustainability and continuing upward movement is encouraging, notes FMI. This score remains the highest score for the NRCI index since Q1 2009. The index for the overall economy rose to 72 points, and the combined index sentiment for economies where panelists are doing business rose 3.2 points.
Cost of construction materials, cost of labor and productivity continue to hold down the index, explains FMI. Additionally, investments in technology, equipment and training are said to be needed to keep the economy from going stagnant.
Panelists for this quarter’s NRCI suggest that the uncertainty for investments is a result of the immigration/labor bills, delays in implementation of “Obamacare,” and the impact of residential growth on nonresidential construction. These issues are reportedly causing the industry to sit back and wait to see the outcomes before making any risky investments.
A copy of the full 2013 Third Quarter Nonresidential Construction Index report is available for download from the FMI site. For any questions, contact the author, Sarah Vizard Avallone, at savallone@fminet.com or at 919/785-9221.
