Construction Confidence Low, New Survey Shows

 Engineering News-Record (ENR) and McGraw-Hill Construction Research  Analytics have introduced a new quarterly Construction Confidence Index   to measure industry sentiment about the construction market, including market sectors, expectations and trends. The Construction Confidence Index is 25 on a scale of 100, where a value of 100 indicates all respondents report “improving” activity and a value of 50 means all respondents report “stable” activity. Results from the inaugural survey are included in this week’s issue of ENR, “Survey: Firms Don’t See Quick Recovery."

When assessing the construction market, 86% of survey responders, including general contractors, subcontractors and designers, see it currently declining, and most believe the market turnaround is at least 12 to 18 months away. Employment figures are also grim: 62.3% of firms reported they have laid off people in the past six months, with one in 10 saying that over 20% of all staff had been cut; 35% expect further cutbacks. Not surprisingly, the stimulus bill elicited more positive responses, with 61% agreeing that the bill will have a positive impact on the industry.
 
“By surveying leaders at the top companies in the industry, we are able to get a better pulse on market conditions,” said Janice L. Tuchman, editor-in-chief of Engineering News-Record. “Their opinions and viewpoints are strong indicators for where the market stands and where it is headed. ENR’s Construction Confidence Index is certain to serve as a powerful industry assessment tool, especially in the challenging times that lie ahead.”
 
The next quarterly survey will be available in July 2009 and will feature industry indicators and timely topics such as the stimulus bill.

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