News & Press

FMI Offers Economic Insights for 2019 in ‘FMI Quarterly’

Leading construction industry consultant FMI Corporation offered several key economic insights for the U.S. construction industry in its recently released “FMI Quarterly.” Among them:

  • FMI forecasts a 3 percent increase in spending levels in the construction industry in 2019 compared to 2018.
  • In 2016 just 8 percent of contractors listed economic slowdown as a risk, but some 58 percent of contractors cited that risk in this first FMI Quarterly for 2019.
  • Operating profit margins for nonresidential construction firms have nearly doubled over the last four years, in aggregate.
  • During the broad expansionary cycle that the U.S. engineering and construction markets have been in since 2011, operating profit margins of nonresidential construction firms analyzed by FMI grew at 17.3 percent compound annual growth rate.

While it doesn’t forecast a recession in 2019, FMI said it expects construction spending growth to slow down in the coming months.

FMI CEO Chris Daum commented: “For many years we’ve noticed that contractors and clients across the industry ignore the need for internal improvements and operational execution during healthy and robust markets. Given everything that we see going on in the market today – and what’s sure to come – we think now is a great time to do so.”