Nonresidential Construction Index Continues to Rise

NRCI = 59.8

FMI (www.fminet.com), the largest provider of management consulting and investment banking to the engineering and construction industry, announces the release of its Second Quarter Nonresidential Construction Index (NRCI) for 2012. Rising 1.7 points from the first quarter, this is the highest confidence rating ever achieved, since the index was developed in 2007.

Panelists reveal that backlogs remain about the same at a median of eight months. However, all markets, with the exception of education construction, are expected to improve slightly over the next quarter. Productivity has also shown improvement. Holding down the NRCI is the continued increase in labor and material costs.

With U.S. elections and global economics dominating the headlines this year, FMI asked panelists to identify what issues may affect their business strategies. Topping the list of global issues are rising inflation as the result of U.S. monetary policy and the collapse of the European Union. Although debt default in Greece and Spain are important, they ranked considerably lower on the list of concerns.

Topping the list of election-year issues are the need to reduce spending on entitlement programs and to reduce the national debt. Since NRCI panelists are all senior executives, FMI asked them what they might do if elected president of the United States. The most mentioned action items include:

• Tax reform
• Balanced budget
• Cost cutting
• Entitlement reform
• Collaboration rather than confrontation

To download a copy of the full report, click here. For reprint permission or to schedule an interview with the author, please contact Sarah Vizard Avallone at 919.785.9221 or savallone@fminet.com.

About FMI FMI is the largest provider of management consulting, investment banking and research to the engineering and construction industry. We work in all segments of the industry providing clients with value-added business solutions, including:

• Strategy Development
•  Market Research and Business Development
•  Leadership and Talent Development
•  Project and Process Improvement
•  Mergers, Acquisitions and Financial Consulting
• Compensation Data and Consulting

Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U.S. FMI delivers innovative, customized solutions to contractors; construction materials producers, manufacturers and suppliers of building materials and equipment, owners and developers, engineers and architects, utilities, and construction industry trade associations. FMI is an advisor you can count on to build and maintain a successful business, from your leadership to your site managers. For more information, visit www.fminet.com.