RALEIGH, N.C., July 27, 2017 — (PRNewswire) —

RALEIGH, N.C., July 27, 2017 /PRNewswire-iReach/ -- FMI's forecast, the FMI Outlook has moderated from a total expected growth in construction put in place of 6% last quarter to 5% for the second quarter. The non-residential construction index slipped from 61.4 in the second quarter to 60.8 for the third quarter. In both cases, there are some signs of weaker growth in most markets but still solid growth in the industry overall.

Some key highlights include:

• The backlog index continues to indicate a median of 12 months, unchanged for the last four quarters.
• FMI sees weaker growth in infrastructure-related markets (primarily nonbuilding structures).
• Given the rapidly evolving state of the retail environment, 10% growth in construction for 2017 and a forecast of just 5% in 2018 is symptomatic of the continuing store closing for major chains, including Sears, Macy's, Staples and J.C. Penney.
•  For highway and street construction, FMI forecasts 2% growth for 2017 and another 3% in 2018. We do not expect a significant jump in spending over current levels.
• For manufacturing, FMI expects growth to drop 3% in 2017 to just over $72.9 billion and jump to 8% in 2018. The manufacturing utilization rate is currently at just 72.6 for the first quarter 2017.

One industry participant added, "Margins are trending down slightly; however, they should be up in the next six to 12 months due to greater demand. Cost of labor and materials will also rise, causing short-term market adjustments."

Read the full report.

About FMI

For over 60 years, FMI has been the leading management consulting and investment banking firm dedicated exclusively to engineering and construction, infrastructure, and the built environment.

FMI serves all sectors of the engineering and construction, infrastructure and built environment industries as a trusted advisor. More than six decades of industry context, connections, and leading insights leads to transformational outcomes for our clients and the industry.

FMI helps you build your foundation for tomorrow and optimize your business for today. Industry Focus. Powerful Results.

Sector Expertise:

A/E and Environmental
General Contractors/CM
Heavy Civil
Industrial
Specialty Trades
Utility T&D
Clean Tech and Energy Services
Construction Materials
Building Products
Oil and Gas
Private Equity
Owners

For more information, please visit https://www.fminet.com.  Follow FMI on Twitter and LinkedIn

SOURCE FMI Corporation