FMI's Construction Outlook: Second Quarter 2011 Report Available

Construction Market Forecast: General Economy Seeing Mixed Signs

RALEIGH, N.C. — FMI, the largest provider of management consulting and investment banking to the engineering and construction industry, announces the release of the Construction Outlook: Second Quarter 2011 Report.

In FMI's Construction Outlook for the second quarter 2011, there are signs that the economy is recovering — even for contractors — but you have to look hard to see them. The stock market has taken on a more bullish trend since the bottom of the recession, but that bull has yet to visit Main Street, which is struggling to fix the potholes, not to mention the infrastructure buried beneath the streets.

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.

Report highlights include :
> Total construction in 2011 will climb 2% after declining 9% in 2010.
> Construction employment remained abysmal and little changed since the depth of the recession.
> The nonresidential sector will 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 will contribute to a positive climb in the non-building segment.
> Power will 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. We expect 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.
Download the complete report at http://www.fminet.com/media/pdf/forecasts/Outlook_2011Q2_FMI.pdf

FMI's Research Services Group is responsible for design, management and performance of primary and secondary market research projects and related research activities, including economic analysis and modeling, construction market forecasting and database management.

About FMI
FMI is the largest provider of management consulting, investment banking and research to the engineering and construction industry. We work in all segments of the industry providing clients with value-added business solutions.

Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U.S. FMI delivers innovative, customized solutions to contractors; construction materials producers; manufacturers and suppliers of building materials and equipment; owners and developers; engineers and architects; utilities; and construction industry trade associations. FMI is an advisor you can count on to build and maintain a successful business, from your leadership to your site managers.