30/6/10 – Recession-end for the construction industry in 2011 according to Engineering News-Record Survey.
30 June 2010
This week’s issue of Engineering News-Record (ENR), the US magazine published by McGraw-Hill Construction, indicates that Construction professionals expect a turn around in their industry in 2011. The ENR’s Construction Industry Confidence Index for the second quarter of 2010 shows that construction and design firm executives believe that the construction industry will show significant signs of recovery from the recession by next year.
The index which measures industry opinion, is on a scale of up to 100 and currently stands at 41 where 50 indicates a stable market.
This is up from 34/100 in the first quarter of 2010 and up significantly from 25/100 in the first quarter of 2009. The index is a record of 555 completed surveys from leading contractors and engineering firms.
13 out of the 15 market sectors measured in the survey showed indications that those working within them had a strong belief that things are on the up. The exception is the transportation sector and of course, the petroleum sector which fell from 51 to 44 in the aftermath of the BP oil spill this year.
Industry opinion is not good for the short term however, with only 11% expecting to see improvements in 2010. The survey also asked participants about obtaining project financing and found that they are meeting challenges. Nearly 40% say that getting a project financed is tougher than six months ago with only 13% believing that it is now easier than before.