The Nonresidential Construction Index (NRCI), is at 51.3 for the third quarter of 2010. The index is in growth territory for the second consecutive quarter. However, it retreated somewhat from the more positive second-quarter outlook of 54.5. The index is maintained by FMI Corp., Raleigh, NC, a management-consultant and investment banking firm serving the engineering and construction industry.
Although new-construction growth is slow to materialize, FMI asked if owners were showing more interest in improvement and alteration projects. Fifty-nine percent of panelists said owners were increasing their interest in projects for general modernization, energy improvement, green and sustainable upgrades, and other projects. This work will not replace new-construction business lost in the recession, but will provide new markets for contractors able to focus on this service-oriented work. In fact, there are strong signs in panelist comments this quarter that contractors are becoming more customer-service oriented to assure that they win over new customers and retain current ones.
