More growth for nonresidential construction but industry still hesitant

By |  May 15, 2014

FMI‘s Nonresidential Construction Index report for the second quarter of this year shows slight improvement in the nonresidential sector compared with the first quarter of this year, as well as the second quarter of last year. The index jumped 0.9 points from last quarter, and it’s currently 5.7 points higher this quarter than at this time one year ago.

The nonresidential sector continues to grow, FMI points out, but the firm says growth is slowing. This indicates the economy still holds a lingering recession mentality, the firm says.

According to a press release, 47 percent of industry panelists who provide the input used to produce the index indicate their company does not have an ongoing research and development effort. This suggests an opportunity exists to improve market position for those companies that can be the most innovative, FMI says.

When panelists were asked where the industry most needs to focus future innovation, one industry leader responded, “On anything that makes construction more productive. More productivity means less labor is needed on site during a time of real labor shortages.”

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Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or

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