Industry experts believe the construction industry is recovering
March 22, 2013
The construction industry is in recovery mode, at least that's what the most recent Construction Industry Confidence Index conducted by Engineering News-Record magazine shows. With a score of 64 out of 100, the index is 14 points higher than the Q4-2012 reading when industry experts believed the economy could not resume as normal and firms were struggling to find work.
Now 32 percent of construction executives believe the industry is growing, while 44 percent are confident the market will continue to grow for the next six months. With better sentiment among industry professionals, construction companies are able to land more jobs and invest in new equipment.
When more projects are on the horizon, the construction industry tends to look better. The ENR research, that was recently published by McGraw-Hill Construction, revealed in Q1-2013 more than 56 percent of respondents believe project financing has remained unchanged, while nearly 32 percent said it is becoming easier to fund new constructions than it was throughout 2012. Many of the projects in the industry stem from when businesses are unable to land projects and find new work.
Did Obama's plea work?
In President Obama's latest State of the Union address, he stressed the importance of collecting funds to support the nation's infrastructure, but construction executives have been waiting to see the proof behind the pudding. Just 27 percent of respondents think Obama and his administration will actually supply them with more capital to use, and almost 34 percent said they think public funding will remain the same as it was before Obama called for additional money.