FMI Releases Nonresidential Construction Index (NRCI) for the First Quarter, 2010

The NRCI report for the first quarter is 48.4, a slightly positive move from the fourth quarter 2009 reading of 47.7. The improvement may be attributed to the panelists’ trust in a continuing upswing in the economy.

While health care construction is the only construction market showing relative strength this year, most panelists predict improvements for next year, with the exception of the lodging and office markets. Fifty-two percent still expect reductions in staff for 2010, compared with the 64 percent that were downsizing this time last year; however, those cuts will be less drastic with most being less than 5 percent of staff. Even though reductions still loom, some construction executives are making strategic hires to prepare for certain market improvement.

Overall, we think we are seeing signs of recovery in the responses to this quarter’s survey, but that recovery could be very slow, especially if financial institutions continue to keep a tight reign on loans and owners are reluctant to build once their markets improve.

To learn more about this report, please contact Phil Warner at 919.785.9357 or pwarner@fminet.com.

About FMI
FMI is the largest provider of Management Consulting and Investment Banking to the worldwide construction industry.

Founded in 1953 by Dr. Emol A. Fails, FMI delivers innovative, customized solutions to contractors; architects and engineers; construction materials producers; manufacturers and suppliers of building materials and construction equipment; private owners, managers, and developers; residential builders; utility companies; surety companies and industry trade associations.

FMI creates value through enhanced performance of companies, teams and individuals and by mitigating risk. FMI is headquartered in Raleigh, N.C., and has offices in Denver, Phoenix and Tampa, Fla. For more information, visit www.fminet.com.