Engineering News-Record and McGraw-Hill Construction Research & Analytics recently introduced a new quarterly Construction Confidence Index to measure industry sentiment about the construction market, including market sectors, expectations and trends. The Construction Confidence Index is 25 on a scale of 100, where a value of 100 indicates all respondents report “improving” activity and a value of 50 means all respondents report “stable” activity.
When assessing the construction market, 86 percent of survey responders, including general contractors, subcontractors and designers, report they see it currently declining, and most believe the market turnaround is at least 12 to 18 months away. Employment figures are also grim, according to the report: 62.3 percent of firms reported they have laid off people in the past six months, with one in 10 saying that more than 20 percent of all staff had been cut; 35 percent expect further cutbacks. Not surprisingly, the stimulus bill elicited more positive responses, with 61 percent agreeing that the bill will have a positive impact on the industry.
“By surveying leaders at the top companies in the industry, we are able to get a better pulse on market conditions,” said Janice Tuchman, editor-in-chief of Engineering News-Record. “Their opinions and viewpoints are strong indicators for where the market stands and where it is headed.”
The next quarterly survey will be available in July 2009 and will feature industry indicators and timely topics such as the stimulus bill. For more information and methodology, visit http://enr.ecnext.com/coms2/article_bmfi090429MarketRecove.