On Oct. 29, the U.S. Commerce Dept. reported the U.S. economy grew by an unexpectedly high 3.5% during the third quarter of 2009, ending a string of four consecutive quarters of a shrinking economy. For many, this is a sign the recession may be abating. For others, this is just a sign the various government stimulus moves did their job for the time being, but more time and effort will be needed before a true recovery begins. Photo: University Medical Center at Princeton in Plainsboro Related Links: The Top Owners Sourcebook Complete Report Developers: Firms Bracing as Building Market Searches
The construction industry continues to be stuck in a major recession, and, for most firms, the end is not in sight. But the latest ENR Construction Industry Confidence survey shows some industry leaders sense that mid-2010 may show the beginning of some relief from the drought. + Image How Different Groups View the Market Related Links: Competition Intensifies as Recession Deepens Medical Costs Trump Savings From Safety Recession Steadies Prices For Liquid Paving Product Airport To Squeeze Fuel Costs With Hydraulic Hybrid Pickup Lower Materials and Bid Costs Help States Push Projects Construction Squeeze Takes Toll As Wage Hikes Flatten
The industry is in the midst of its worst recession in a generation, and most major firms worry the market will not come out of its slump any time soon. However, the latest ENR Construction Industry Confidence Index shows industry leaders are beginning to see some light at the end of the tunnel. + Image How different groups view the market The ENR Construction Industry Confidence Index was launched in April, when the market looked its bleakest. At that time, executives from 752 large contractors, design firms, specialty firms and subcontractors, and construction-management firms saw little about which to be
The industry and the economy as a whole are now in a recession. As design firms are on the front end of projects, they are the first to feel the pain of a downturn, and these times are no exception.
The construction industry is surprisingly collegial, considering how competitive it is. Contractors, designers and subcontractors regularly talk to one another, even to their intense rivals. As people in the industry share insights with each other about their particular markets, firms often ask about broader market conditions or about markets beyond their focus or geographic locale to see if their experience matches that of others around the country. With this in mind, ENR is introducing a new Construction Confidence Index survey. Slide Show Image: Sue Pearsall/ENR How Different Groups View the Market The overall results should come as little surprise, as
The World Bank announced January 14 the debarment of seven firms and one individual for engaging in collusive practices on major Bank-financed roads projects in the Philippines. The World Bank’s Integrity Vice Presidency (INT) uncovered evidence of a major cartel involving local and international firms bidding on contracts under phase one of the Philippines National Roads Improvement and Management Program, known as NRIMP 1. World Bank stopped an estimated $33 million in Bank funds from being awarded to the firms. The World Bank’s Sanctions Board concluded that the entities had participated in a collusive bid-rigging scheme. The contractors debarred include
The global construction market had been booming in 2007 and through midyear 2008, and large international contractors and design firms reaped the benefits. The demand for big-ticket projects, from petroleum production facilities and powerplants to major infrastructure upgrades and signature buildings, made the demand intense for world-class contractors with the size and expertise to deliver these projects. As a result, big firms around the world were scrambling to grow, either organically or through acquisition, to meet this demand. Illustrations: Guy Lawrence /ENR Related Links: 2008 Top Global Sourcebook For many firms, this booming market has come to a screeching halt.
The downturn in the construction market has the industry on edge, and owners, the ultimate consumers of construction services, are no exception. The credit crunch, plunging consumer sales, falling tax revenue and uncertainty about the next administration in Washington have owners increasingly reluctant to green-light projects and they are tightening up management of those jobs that are going forward. Photo: Mineta San Jos International Airport Owners worry that a recession will limit workforce development. Related Links: View Top Owners Rankings View Top Capital Expenditures The Complete Top Owners Sourcebook with Market Data and Analysis As part of its overview of
