2021 CIRT Sentiment Index: Second Quarter Report

Download Report

The second quarter of 2021 report shows strong signs of optimism that recovery across most of the industry is either underway or coming soon, as seen in both the Sentiment Index and in the Design Index.

The Sentiment Index rose to the highest on record, soaring from 55.5 last quarter to 79.1 (+43%). The Design Index followed trend, jumping from 64.8 to 83.9 (+29%). These greatly improved results are led by an increase in component scores across the nonresidential sector (+80%), the local economies where respondents conduct business (+60%), and the overall U.S. economy (+49%).

For this quarter’s current issues questions, CIRT members were asked to reflect on the many market disruptions seen through 2020 and rate perceived impacts, either positive or negative, based on professional observations and experience, considering various segments (external) and organizational factors (internal) impacting their business. Respondents were also asked to quantify permanence or lasting effects on those same factors over the years ahead.

Among the industries represented by CIRT’s member base, office, lodging, commercial and international work are projected to experience the biggest short-term declines across design and construction. The design industry’s long-term view of project growth remains quite positive, with every sector tracking above 3.5. The construction industry’s long-term view is similarly optimistic, with just one sector, office, tracking below 3.0.

CIRT Index Movement: Q1 2021 vs. Q2 2021

ABOUT THE CONSTRUCTION INDUSTRY ROUND TABLE (CIRT)

The Construction Industry Round Table (CIRT) is composed exclusively of approximately 115-120 CEOs from the leading architectural, engineering and construction firms doing business in the United States.

CIRT is the only organization that is uniquely situated as a single voice representing the richly diverse and dynamic design/construction community. First organized in 1987 as the Construction Industry Presidents’ Forum, the Forum has since been incorporated as a not-for-profit association with the mission “to be a leading force for positive change in the design/construction industry while helping members improve the overall performance of their individual companies.”

The Round Table strives to create one voice to meet the interests and needs of the design/construction community. CIRT supports its members by actively representing the industry on public policy issues, by improving the image and presence of its leading members, and by providing a forum for enhancing and developing strong management approaches through networking and peer interaction.

The Round Table’s member CEOs serve as prime sources of information, news and background on the design/construction industry and its activities. If you are interested in obtaining more information about the Construction Industry Round Table, please call 202-466-6777 or contact us by email at [email protected].

CIRT SENTIMENT INDEX

The CIRT Sentiment Index is a survey of members of the Construction Industry Round Table conducted quarterly by FMI Research, Raleigh, North Carolina. For press contact or questions about the CIRT Sentiment Index, contact Mark Casso at [email protected].

CONFIDENTIALITY

All individual responses to this survey will be confidential and shared outside of FMI only in the aggregate.

All names of individuals responding to this survey will remain confidential to FMI.

Brian Strawberry is a senior economist with FMI. Brian’s expertise is in economic and statistical modeling. He leads FMI’s efforts in market sizing, forecasting, and building product/construction material pricing and consumption trends. The combination of Brian’s analytical skills and creative problem-solving abilities has proven valuable for many contractors, owners and private equity groups as well as industry associations and internal research initiatives. Brian can be reached at [email protected].

Emily Beardall is a Consultant for FMI’s strategy practice. Emily is responsible for creating and developing tools to deliver innovative solutions for our clients. She is committed to utilizing these strategic tools to improve company performance and profitability. Emily can be reached at [email protected].