FMI Releases NRCI for the Fourth Quarter, 2011

RALEIGH, N.C.--(BUSINESS WIRE)--

FMI (www.fminet.com), 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 fourth quarter of 2011.

The NRCI slipped from 52.4 to a barely positive 50.3 this quarter. While the stock market continues its gyrations from news surrounding the future of the Euro countries, the NRCI has managed glacial growth, chugging along just about average for the last two years, average being little to no growth. The NRCI dropping to 50.3 this quarter is less a downward trend than a continuation of moderate growth.

Current Issues

Overwhelmingly, NRCI panelists do not expect the American Jobs Act (AJA) and the related National Infrastructure Bank (NIB) bill to pass as now proposed. Even with public construction as part of the AIA, few panelists expected that it would significantly increase their backlogs if passed.

This report also looks into a resurfacing issue of how to pay for rising health care insurance costs due to the introduction of the Patient Protection and Affordable Care Act, aka Obama Care. Although, the majority of NRCI panelists recognize they will have to share the skyrocketing costs of health care with employees, a few say they intend to drop their policies, pay the penalties and let employees fend for themselves.

Bottom line, little to moderate growth for now. However, this doesn't mean there won't be significant changes in how the nonresidential construction industry conducts business over the coming months.

To download a copy of the full report visit www.fminet.com/resources. For reprint permission or to schedule an interview with the author, please contact Sarah Avallone at 919.785.9221 or savallone@fminet.com.

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, including:

• Strategy Development
• Market Research and Business Development
• Leadership and Talent Development
• Project and Process Improvement
• Mergers, Acquisitions and Financial Consulting
• Compensation Data and Consulting