RALEIGH, N.C. (May 13, 2014) ““ FMI, a leading provider of management consulting and investment banking* to the engineering and construction industry, announces the release of the 2014 Second Quarter Nonresidential Construction Index report. The NRCI shows slight improvement of a 0.9 point increase from Q1 and a 5.7 point increase from Q2 2013.
Although growth continues, it is beginning to slow indicating that the economy still holds a lingering recession mentality. The largest repercussion of this mindset is that it keeps companies from investing, banks from lending and consumers from spending. Thus, the pressure to keep prices low continues along with the need for greater profitability, leading to two key challenges:
- How to improve productivity?
- Where to find qualified personnel?
A 1.7 point decline in the productivity component of the NRCI is indicative of these challenges. To answer these issues, deliberate time must be spent on new ideas, innovation, and R&D. However, 47 percent of industry panelists indicate that 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.
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.”
To read the full report, click here. Members of the media may request a complimentary PDF file by clicking here. For reprint permission or to schedule an interview with the author, please contact Jenna Luvin at 303.398.7202 or [email protected].
About FMI:
FMI is a leading 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:
- Strategic Advisory
- Market Research and Business Development
- Leadership and Talent Development
- Project and Process Improvement
- Mergers, Acquisitions and Financial Consulting*
- Compensation Benchmarking and Consulting
- Risk Management Consulting
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. For more information, visit www.fminet.com
*Investment banking services provided by FMI Capital Advisors, Inc., a registered broker-dealer and wholly owned subsidiary of FMI.
