FMI Releases 2021 Engineering and Construction Industry Overview
RALEIGH, N.C. – February 1, 2021 -- FMI Corporation, the leading provider of consulting and investment banking services to the built environment released the 2021 Engineering and Construction Industry Overview. The report provides a comprehensive forecast for a broad range of construction and engineering segments in the U.S. and Canada for 2021 and the next three years.
The introduction by FMI CEO Chris Daum offers insights into how companies can find opportunities amid continued uncertainty surrounding the COVID-19 pandemic, turmoil from the U.S. political climate and market uncertainty. While many companies continue to deal with challenges, those who remain nimble, closely examine geographies where they operate and remain true to their competitive advantages will be positioned for growth.
Key highlights of the report include:
- Total engineering and construction spending for the U.S. is forecast to end 2020 up 1% compared to up 2% in 2019.
- Looking ahead to 2021, FMI forecasts a 6% decline in engineering and construction spending levels compared to 2020.
- Primary growth segments in 2020 are expected to be limited to residential improvements, single-family construction, public safety and water supply infrastructure, all with growth rates of 5% or higher.
- Some mixed public and private segments (multifamily, commercial, health care, communication, sewage and waste disposal, and conservation and development) are expected to end 2020 with growth roughly in line with the rate of inflation and therefore be considered stable.
- Most nonresidential building segments (i.e., lodging, office, educational, religious, amusement and recreation, transportation and manufacturing) alongside the largest nonbuilding structures segments (i.e., power and highway and street) are expected to end 2020 in decline.
- The latest Nonresidential Construction Index (NRCI) feedback suggests increased optimism for the first quarter of 2021, at 47.1, up from 45.6 in the quarter prior. The index however remains below the growth threshold of 50, suggesting fewer engineering and construction opportunities in 2021.
About FMI
FMI is the leading provider of consulting and investment banking to the Built Environment. We provide services in the areas of strategy, leadership and organizational development, performance, technology and innovation, mergers and acquisitions, financial advisory and private equity financing.