FMI Nonresidential Construction Index (NRCI)
Almost every component of the NRCI Index moved in a positive direction in the first quarter. This result for the beginning of 2017 is welcome, as many have been expecting a slower economy. That expectation seemed to be based only on the idea that it has been good for so long, it must go down. The fact that material and labor costs continue to rise is a positive sign of a growing economy. It appears we can sustain the growth cycle for some time longer, and that may be in part because it has been slow growth, not a meteoric burn and decay. Slow growth or not, panelists indicate that finding enough talented people to do the work and somehow improving productivity are among their chief concerns this year.
With productivity improvement still in the doldrums for most companies reporting, we looked at two newer approaches to construction that may help improve productivity as well as reduce project turnaround times and waste, Lean Construction and Integrated Productivity (IPD). Both practices have been employed in the construction industry for some time now; however, the number of projects and companies involved have been limited.
