2020 Heavy Civil Construction Index: Fourth Quarter Report
The fourth quarter 2020 Heavy Civil Construction Index (HCCI) increased from 34.9 to 43.3, buoyed by a positive outlook on the economy and increasing confidence in the construction industry. Materials, labor and productivity measures all remain depressed. The trends seen in the index are reflective of cautious optimism toward next year, especially when compared to the economic fallout experienced through the first half of this year.
Continued relaxing of social distancing requirements, significant government stimulus and growing economic confidence have all contributed to improved expectations. Across heavy civil segments, residential site development and private utilities carry the most optimism for next quarter, contrasted by weak expectations for transit/rail, aviation and commercial site development.
Nearly half (48 percent) of survey respondents are burning backlog faster than it is being replaced on a year-over-year basis. Within the past six months, approximately one-third (34 percent) have found new, nontraditional competitors on bids, and within the past quarter, more than half of respondents have recognized increased competition (53 percent) alongside lower bid prices (56 percent).
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