2022 Heavy Civil Construction Index: Third Quarter
The 2022 third quarter Heavy Civil Construction Index reports expectations for future industry contraction, falling to 48.4 from 57.7. This is the second time since the index started (Q1 2018) that it has dipped below 50, suggesting contraction. Though expectations for the U.S. economy and the respondents’ local economies were strongly negative, outlooks on the overall health of their engineering and construction businesses remain positive. Cost of materials and labor continue to be significant drags on the index.
Key findings on current issues include:
- 70% of respondents agree with FMI's expectation of a 12 to 18 month recession
- 41% believe that labor shortages will amplify
- 45% expect materials shortages will ease, but prices will stabilize higher than before
- 93% are concerned that interest rates and economic weakness will weigh against their backlogs
