Hiring Plans Improve, Regulatory “Red Tape” Delays Projects. RALEIGH, N.C. — FMI, the largest provider of management consulting and investment banking to the engineering and construction industry, announces the release of its Nonresidential Construction Index (NRCI) report for the first quarter of 2011.   The encouraging reading of 60.8   is the highest NRCI score FMI has recorded since starting this Index in the fourth quarter of 2007; just as the economy entered what came to be known as the Great Recession. However, as usual, when FMI looked at the details for markets and backlogs, it is obvious that this … Read more

WASHINGTON, D.C. — After showing positive momentum during the fourth quarter of 2010, the Architecture Billings Index (ABI) slipped almost four points in January.   As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending.   The American Institute of Architects (AIA) reported the January ABI score was 50.0, down from a reading of 53.9 the previous month.   This score reflects stable demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 56.5, down sharply … Read more

Latest Producer Price Index Figures Show Prices for Diesel, Steel, Bars, Steel Pipe and Other Key Construction Materials Have Double-Digit Spikes During the Past 12 Months The prices contractors must pay for many essential construction materials continued to increase in January, even as the amount they charge for completed projects remains flat, according to an analysis of January producer price index figures released today by the Associated General Contractors of America. Association officials noted that the price trends are cutting into already tight bottom lines for contractors, undermining chances for an industry-wide recovery in 2011. “The last thing contractors need … Read more

Stronger gains for commercial real estate sector expected in 2012WASHINGTON DC — A slow recovery period is projected for the nonresidential construction industry this year, and 2011 spending levels are not anticipated to be enough to show growth over 2010 figures.   While activity for institutional projects should hover near 2010 levels, there is likely to be a modest decline in commercial construction.   Overall nonresidential construction spending is expected to decrease by two percent in 2011, with 2012 seeing an increase of five percent in inflation adjusted terms.   These are highlights from the American Institute of Architects (AIA) … Read more