December 03, 2012
Marcum's Construction Industry Group Featured in AccountingToday Article "Marcum Begins Tracking Commercial Construction"
By Michael Cohn
Accounting and advisory firm Marcum LLP has introduced the Marcum Commercial Construction Index, a quarterly index that will track the performance of the U.S. commercial construction industry.
Marcum's Construction Services Group provides accounting, audit, consulting and taxation services to construction clients ranging from startups to multi-billion-dollar enterprises. The initial edition index found that total nonresidential structures investment declined 4.4 percent in the third quarter of 2012, despite 2 percent annualized growth in the national economy during the period. Year-over-year nonresidential construction spending in the third quarter rose a modest 2.6%, well below the more than 19 percent growth in residential construction. The index can be viewed in its entirety www.marcumllp.com/constructionindex.
"Despite 13 consecutive quarters of economic growth, nonresidential construction has not been among the sectors experiencing meaningful recovery. The agonizingly slow recovery in nonresidential construction spending is attributable to many factors, including fiscal cliff fears, tight credit, cautious developers and stubbornly high vacancy rates in many market segments," said Marcum chief construction economist Anirban Basu, who is also chief economist for the Associated Builders & Contractors organization. "On the brighter side, the latter half of 2013 could be surprisingly good if Washington is able to successfully navigate the nation past the fiscal cliff, given the large volume of construction projects that were put on hold over the course of 2012."
Three sectors of nonresidential construction spending demonstrated rapid recovery year-over-year, the index found.