Nonresidential Index Moves Up 7.8 Points
Friday, March 30th, 2012A recently released report from FMI shows the Nonresidential Construction Index up 7.8 points to 58.1. (50 is neutral.) More companies plan to hire, albeit only up to 5%, than lay off. This is up five percentage points from last year this same time. The prediction for construction put in place is a meager .5 to 2.5%, but at least it’s more not less. The FMI report goes on, “For some indication of what is holding these expectations back, we also asked panelists for their observations on what owners are doing to control project costs. It is clear that low, low price and high competition are still the driving factors. Savvy owners are also focusing on involving CMs and contractors in the pre-construction phase of the project as well as taking advantage of more sophisticated construction delivery methods and technologies like building information modeling (BIM). It is good to see there are signs that at least pockets of the country are beginning to build again, but the economy is still at the mercy of an uncertain global economy and a world that seems to be changing rapidly in many directions.”


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