According to a recent report released by PSMJ Resources, proposal activity for U.S. healthcare facilities decreased markedly in the 2nd quarter of 2020 amid the COVID-19 pandemic slowdown. The market’s net plus/minus index fell from 27%, which was the best 1st quarter result among all 12 major markets measured in PSMJ Resources Quarterly Market Forecast, to 10% in the 2nd quarter.
Healthcare Market Proposal Activity – 2007 to 2020 (NPMI)
In a further sign that the healthcare construction market is likely to experience several months of weakening performance, only one of four submarkets reported a positive NPMI. Medical labs recorded a 2nd quarter NPMI of 9%, down from 27%. The other – submarkets were a flat 0% – hospitals (down from 33%) continuing care facilities (down from 24%) and medical office buildings (down from 17%).
PSMJ’s NPMI expresses the difference between the percentage of firms reporting an increase in proposal activity and those reporting a decrease. The QMF has proven to be a solid predictor of market health for the A/E/C industry since its inception in 2003. A consistent group of over 300 firm leaders participate regularly, with 171 contributing to the most recent survey.
Despite the drop in quarter-to-quarter activity, healthcare had the third-highest NPMI and was one of only four major markets in positive territory. It also showed improvement over the NPMI of monthly supplemental surveys, which PSMJ conducted in April (-8%) and May (5%) to gauge the effects of COVID-19 on proposal activity in the industry. Water/wastewater topped the 2nd quarter survey at 20%, followed by energy/utilities (15%), healthcare and housing (+2%).
For more information, contact Jerry Guerra at 781-718-2403 or firstname.lastname@example.org.