FMI, a provider of management consulting and investment banking to the engineering and construction industry, has released its 2013 Second Quarter Nonresidential Construction Index (NRCI) report. The NRCI score of 60.1 is a 2-point improvement over Q1 and the highest score for the NRCI since its inception in Q1 2009.
Although this isn’t a bullish trend yet, it demonstrates that the nonresidential construction market continues to push upward. However, the index for the overall economy rose 7.9 points and the combined index sentiment for economies where panelists are doing business rose 5.8 points. Current issues for the Q2 NRCI include the effects of sequestration on public and private construction. The majority of the respondents expect only a 0% to 4% reduction in their public works projects due to sequestration.
Panelists for this quarter’s NRCI also responded to questions about potential labor shortages after losing more than 30% of the construction labor force during the recession. The majority of panelists reported few labor shortages at this time. Looking at a year from now, 22% of panelists expect severe shortages for construction laborers as well as shortages for select tradespeople.
To download a copy of the full report, click here.