Highway/Infrastructure Contractors Report More Confidence in Six- and 12-month Outlook
Missouri’s building contractors report lowered expectations for the construction industry’s 2016 economic outlook in a recent AGC of Missouri Contractor Confidence (CCI) Index, looking six, 12 and 18-24 months ahead. The AGC of Missouri’s CCI Index was conducted online in mid-December with member contractors and compares data collected six months ago.
Contractors in the Building Division report lowered expectations for 2016 – dropping their predictions to 63.39 points (down by 5.66) for six months, 61.61 points (down by 6.25) for 12 months, and 58.93 points (down by 4.76) for 18-24 months. Results of the CCI Index survey, based on 100 points, in the same category and conducted from July 15-July 30, were: 69.06 pts. (six months); 67.86 pts. (12 months); and 63.69 pts. (18-24 months). Any rating above 50 indicates a positive overall outlook for business growth.
Contractors in the AGC of Missouri’s Heavy Highway/Infrastructure Division report a drop in their short-term confidence (42.5 points; down 9.58 from 52.08 points six months ago.) However, the same contractors show improved optimism when looking six months and 18-24 months ahead. The six-month outlook rose to 52.5 points (up 15 from 37.5 points) while the 18-24 month outlook moved up to 45 points (up 13.58 from 31.42 points) reported six months ago.
“Our most recent survey confirms what we have been hearing from our members across the state,” said Leonard Toenjes, CAE, president of the AGC of Missouri. “While other parts of the country have seen a full recovery in the building industry, Missouri has been lagging in its recovery, but it is a recovery none the less. Our state is still behind others in jobs and growth. Many of our members are still working on out-of-state projects to fill their pipelines, but are somewhat positive about our local construction market.
“Although the Highway/Infrastructure Division’s longer-term confidence levels are up from six months ago, they still hover around (and below) a score of 50 and reflect tepid economic conditions,” added Toenjes. “Many of our member contractors do not see a bright light at the end of the tunnel quite yet. Passage of the FAST Act in Washington, D.C. to fund transportation and some preliminary state funding bill filings are most likely responsible for the uptick in the 12-month and 18-24 month confidence levels. There is no question that Missouri’s continuing lack of adequate funding for MoDOT continues to weigh on our state’s economic conditions.”
The survey was developed by the AGC of Missouri and was distributed online as well as in-person at recent meetings to member contractors. The CCI index is released quarterly* and is designed to be an additional tool to help business, government and institutional leaders plan for the future.
*Due to scheduling difficulties, no 3rd Q 2015 survey was conducted.
The Associated General Contractors (AGC) of Missouri is the largest organization representing the united voice of the construction industry throughout the state of Missouri.