FMI: nonresidential construction index dropped
FMI's Fourth Quarter Nonresidential Construction Index (NRCI) dropped 2.9 points to finish 2013 at 57.4 due to declining productivity and partisan politics.
FMI's 2013 Fourth Quarter Nonresidential Construction Index (NRCI) report showed a 2.9 point drop in the fourth quarter to 57.4. However, the score is still ahead of fourth quarter 2012 by 1.9 points. An NRCI of more than 50 indicates growth, therefore the fourth quarter score still indicates modest improvement in the industry.
One of the reasons cited for the slight decline is the political infighting and uncertainty. Proceeding with caution by investors seems to be the new norm.
Productivity continues to slide. The 48.6 score is at its lowest since the second quarter of 2008. Ultimately, attention to productivity and profit margins will be key to sustaining growth going forward.
Building construction continues to improve since 2012. However, growth is still unsteady as the numbers have slipped 7.5 points to 64.1 this quarter. Material and labor cost also continues to rise causing the overall NRCI to fall.
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After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.
The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.