Concrete Products

SEP 2015

Concrete Products covers the issues that attract producers of ready mixed and manufactured concrete focusing on equipment and material technology, market development and management topics.

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Page 15 of 59

14 • September 2015 NEWS SCOPE PRODUCERS Except for the hint of a slight decline indi- cated at mid-year, commercial, industrial and institutional building activity continues at a steady pace, according to the Nonresidential Construction Index Report (NRCI) for Q3 2015 from leading management consultant FMI, and reflecting sentiments of construction executives nationwide. "The industry continues to proceed on the recovery track, although it is showing signs of a minor deceleration," says FMI President and Senior Managing Director of Investment Bank- ing Chris Daum. "Despite the decrease in pro- jected backlog and squeeze from rising mate- rial costs, executives in our industry are still bullish and hold positive outlooks overall." FMI's NRCI for Q3 2015 dropped 1.3 points to 63.6 from the previous reading of 64.9 in Q2. The index paints a mixed picture of the nonresidential construction sector's current state. On one hand, the NRCI component for the overall economy dropped 6.3 points to 70.6 points this quarter; while down from its peak, this component still indicates that panelists contributing to the index remain bullish about the economy. Similarly, indi- cators for the economies where panelists do the most business stood at 73.3, indicating a strong outlook despite a slight 3.4-point slip. NRCI Q3 highlights point to diverse forces driving the industry as construction interests approach the 2015 sunset: panelists' views on their businesses are solidly positive with lit- tle changed from the last quarter; while their principal business sector slipped 1.4 points to 75, they remain optimistic on nonresidential building prospects. The index confirms that all sectors with- in the construction industry continue their recovery since the financial crisis, with com- panies making numerous adjustments to their businesses in the intervening recession. Posted at, the NRCI Q3 report summarizes how business adapted during the recession, employing such strategies as great- er selectivity regarding projects and clients; greater use of technology for their businesses to drive productivity; and, stronger risk man- agement coupled with decisions factoring global geopolitical and economic conditions. Index shows sustained nonresidential market strength BUILDER CONFIDENCE Led by a strong jump in single-family pro- duction, nationwide housing starts inched up 0.2 percent to a seasonally adjusted annual rate of 1.206 million units in July, according to U.S. Department of Housing and Urban Development and Commerce Department data. Single-family starts rose 12.8 percent to a seasonally adjust- ed annual rate of 782,000 units after an upwardly revised June reading, while mul- tifamily work fell 17 percent to 424,000 units. "[July's] drop in the more volatile multifamily side is a return to trend after an unusually high June," says NAHB Chief Economist David Crowe. "While multifami- ly production has fully recovered from the downturn, single-family starts are improv- ing at a slow and sometimes intermittent rate as consumer confidence gradually rebounds. Continued job and economic growth will keep single-family housing moving forward." TWO-PIECE SKID UNIT ONE-PIECE SKID UNIT SHOP ASSEMBLED, SHOP TESTED, PRODUCT READY. Don't let the compact size of our Skidded Batch Plant fool you. It can ft your site, yet produce up to 300 yards per day. It offers three different mixer designs, with capacities from 1/2 cu. yd. to 2 cu. yd. Available in one piece or two piece assemblies. Set up in less than 2 days. Concrete equipment. Concrete solutions. PO Box 10, 190 Simmons Avenue, Pewaukee, WI 53072-0010 262-691-3100

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