Nonresidential Construction Index fourth quarter index drops

Concerns about the economic problems in Europe as well as political infighting in Washington drops the Nonresidential Construction Index from 52.4 to 50.3 for the fourth quarter.

11/17/2011


FMI announced the release of its Nonresidential Construction Index (NRCI) report for the fourth quarter of 2011. The NRCI slipped from 52.4 to a barely positive 50.3 this quarter. While the stock market continues its gyrations from news surrounding the future of the Euro countries, the NRCI has managed glacial growth, chugging along just above average for the last two years, average being little to no growth. The NRCI dropping to 50.3 this quarter is less a downward trend than a continuation of moderate growth.

Moderate growth does not mean there are not changes going on in nonresidential construction. In past issues, panelists’ expressed views on the increasing use of new methods and technologies like BIM, prefabrication, modularization, integrated project delivery, sustainable construction, as well as improved productivity and business development. Most contractors are better prepared to deal with these challenges than with abrupt changes in the economy.

Overwhelmingly, NRCI panelists do not expect the American Jobs Act and the related National Infrastructure Bank bill to pass as now proposed. Even with public construction as part of the AJA, few panelists expected that it would significantly increase their backlogs if passed.

This report also looks into a not-so-new problem, how to pay for rising health care insurance costs. The issue is resurfacing due to the introduction of the Patient Protection and Affordable Care Act. Although the majority of NRCI panelists recognize they will have to share the skyrocketing costs of health care with employees, a few say they intend to drop their policies, pay the penalties and let employees fend for themselves. Twenty percent of panelists have yet to fully examine their options.

Bottom line, little to moderate growth for now. However, this doesn’t mean there won’t be significant changes in how the nonresidential construction industry conducts business over the coming months.



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Your leaks start here: Take a disciplined approach with your hydraulic system; U.S. presence at Hannover Messe a rousing success
Hannover Messe 2016: Taking hold of the future - Partner Country status spotlights U.S. manufacturing; Honoring manufacturing excellence: The 2015 Product of the Year Winners
Inside IIoT: How technology, strategy can improve your operation; Dry media or web scrubber?; Six steps to design a PM program
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Warehouse winter comfort: The HTHV solution; Cooling with natural gas; Plastics industry booming
Managing automation upgrades, retrofits; Making technical, business sense; Ensuring network cyber security
Designing generator systems; Using online commissioning tools; Selective coordination best practices

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

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me