August 20, 2014 – The failure of Congress to act on a highway bill is weighing heavily on the construction industry. FMI, a leading provider of management consulting and investment banking to the engineering and construction industry, released its 2014 Third Quarter Nonresidential Construction Index report. The NRCI shows a decrease of 3.3 points from Q2, but is still above the same time period in 2013. The cost of materials and labor continues to climb weighing negatively on the index.
Other factors keeping the NRCI from rising are government entities continuing to reduce spending, as well as private investors taking a passive role waiting for others to act first.
The good news is that the economy has passed the “survival” stage and currently occupies the “thriving” phase. Backlogs remain strong with expectations of improvement and productivity up slightly. Thriving in the new economic climate will require companies to not just be the strongest or biggest, but also the most adept at dealing with change.
To read the full report, click here.