FMI Nonresidential Construction Index for Q1

FMI, a provider of management consulting and investment banking to the engineering and construction industry, has released its Nonresidential Construction Index report for the first quarter of 2012.

The NRCI gained 7.8 points over last quarter, to 58.1 this quarter. This positive move to start the new year is not exactly the sign of a bull market for construction, but continuing confirmation that panelists believe that the construction activity is following the lead of the slowly improving economy. There are good signs in hiring plans for 2012, as well as construction-put-in-place predictions. However, panelists indicate that low project pricing and high competition are still driving the market place.

• Hiring: A 5 percentage points increase over this time last year, 42 percent of panelists indicated a 0 to 5 percent increase in full-time direct employees. Additionally, fewer panelists indicated a reduction in salaried employees.

• Construction Put In Place: Expectations for CPIP are positive but cautious, as 41.3 percent of panelists expect growth of 0.5 to 2.5 percent for 2012.

• Overall Economy: The component for the overall economy showed the strongest improvement of all index components with a jump from 43.6 last quarter to 68.7 in the first quarter, a 25 point gain. This score reflects the improvement in many economic indicators including the unemployment rate.

• Nonresidential Building Construction Market Where Panelists Do Business: At just 54.9, the local markets for nonresidential construction are inching ahead. However, panelist responses reflect a perception that their own business is performing a bit better than the overall nonresidential construction market. This indicates that local markets are still very competitive.

• Cost of Materials: Despite a slow economy, material costs continue to rise, with no panelists indicating material costs were lower than last quarter. The cost of materials component moved down nearly 5 points to 26.2. This factor is continuing drag on the overall index and is likely to raise the cost of projects while lowering profit margins for contractors.

• Cost of Labor: The cost of labor improved just slightly to 41.5, indicating little change over the score of 40.0 last quarter. However, no panelists indicated they were experiencing lower labor costs.

• Productivity: Contractors are continuing to make moderate gains in productivity. However, at 52.9, this component is still too weak to offset rising costs for labor and materials.

For more information, visit www.fminet.com.

Boral Hires Guetzow, Commercial Sales Leader

Boral USA has hired Gene Guetzow as commercial sales leader for Boral Stone Products. Guetzow brings 25 years of masonry marketing expertise to his new role, based out of Milwaukee. He will focus on bringing Cast-Fit Cultured Stone Veneer to the U.S. architectural market.

“The commercial sales leader position was created in response to our growing number of product offerings focused on architectural detail and design, said Dennis Merino, VP of sales with Boral Stone Products. “Given Gene’s experience in architectural sales and vast knowledge of masonry products, we have complete confidence in his abilities to successfully execute the sales strategy in the U.S. architecture market.”

Guetzow's extensive background in architectural sales and promotion has encompassed senior positions as regional sales manager at Arriscraft International, and president at Building Stone Products. During his tenure at Building Stone Products, the company grew commercial architectural sales/specifications from $50,000 to $2.2 million. Most recently, Guetzow served as U.S. sales/marketing manager at CalStar Products.

With a comprehensive knowledge of masonry products and installation requirements, Guetzow has presented more than 800 AIA accredited Lunch and Learn programs for architects since 1997. He is a LEED Accredited Professional and a professional affiliate of the Building Industry Association, Construction Specifications Institute, American Institute of Architects, and Association of Licensed Architects, as well as a US Green Building Council-LEED AP and BIA-certified Green Brick Specialist.