FMI predicts nonresidential construction will decline 2 percent in 2011

There are signs that the economy is recovering, even for contractors, but you have to look hard to see them, said FMI analysts in the FMI Corp. Construction Outlook for second quarter 2011.

The costs of construction materials have been rising faster than the slow increase in construction activity would suggest. Construction markets are also affected by national and global uncertainties including the ongoing political upheaval in the Middle East and northern Africa; the resurgence of concern over the European debt crises, particularly Greece; and the ongoing budget battle in the U.S. Congress, according to the management firm.

Report highlights include:

• Total construction in 2011 will climb 2 percent after declining 9 percent in 2010.
• The nonresidential sector will decline just 2 percent in 2011 after a 19 percent decline in 2010.
• Most of the areas showing growth, excluding residential, are in markets related to infrastructure.