Q2 report shows growth in 2011
FMI has predicted the general economy to see mixed signs in the Construction Outlook: Second Quarter 2011 Report.
In FMI’s Construction Outlook for the second quarter of 2011, there are reportedly signs that the economy is recovering – even for contractors.
The costs of construction materials have been rising faster than the slow increase in construction activity would suggest. Recently, commodities investors woke up to the idea that the recovery may once again be delayed. Their concerns are justified when one considers the uncertainties in the news, including a slowdown in GDP growth to just 1.8% after a solid fourth quarter pace of 3.1%. Construction markets are also affected by national and global uncertainties including the ongoing political upheaval in the Middle East and northern Africa; the resurgence of concern over the European debt crises, particularly Greece; and the ongoing budget battle in the U.S. Congress.
According to FMI, the report highlights include:
- Total construction in 2011 to climb 2% after declining 9% in 2010.
- Construction employment remained abysmal and little changed since the depth of the recession.
- The nonresidential sector to decline just 2% in 2011 after a 19% decline in 2010.
- Most of the areas showing growth, excluding residential, are in markets related to infrastructure.
- Sewage and waste disposal, and conservation and development construction to contribute to a positive climb in the nonbuilding segment.
- Power to continue to be a growing construction market (2% growth for 2011) as there is no sign that our need for more of it will abate. An expected growth to accelerate over the next five years as more attention is paid to renewable energy sources.
- The much-expected nuclear renaissance could stall once again as regulating bodies and engineers reassess safety measures based on the devastating results of multiple catastrophes at Japan’s Fukushima nuclear plant.
- Edited by Amanda McLeman, Consulting-Specifying Engineer, www.csemag.com
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Annual Salary Survey
In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.
Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.