June 12, 2012: FMI's Nonresidential Construction Index Continues to Rise
Panelists said that backlogs remain about the same at a median of eight months. However, all markets, with the exception of education construction, are expected to improve slightly over the next quarter. Productivity has also shown improvement. Holding down the NRCI is the continued increase in labor and material costs.
With elections in the United States and global economics dominating the headlines this year, FMI asked panelists to identify what issues may affect their business strategies. Topping the list of global issues are rising inflation as a result of U.S. monetary policy and the collapse of the European Union. Although debt default in Greece and Spain are important, they ranked considerably lower on the list of concerns.
Topping the list of election-year issues are the need to reduce spending on entitlement programs and to reduce the national debt. Since NRCI panelists are all senior executives, FMI asked them what they might do if elected president of the United States. The most mentioned action items include:
• Tax reform
• Balanced budgets
• Cost cutting
• Entitlement reform
• Collaboration rather than confrontation
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Publication date: 6/11/2012