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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Annual Salary Survey
Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.
There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.
But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.
Read more: 2015 Salary Survey