For over 50 years, NCS has been the foremost authority in secured transactions. As the premier mechanic’s lien filer in North America, we provide services throughout the U.S. and Canada and across a myriad of construction industry verticals. Our extensive footprint, paired with decades of experience, affords us a unique perspective on economic trends in construction credit.
NCS’ Lien Index is derived from carefully monitored national and regional mechanic’s lien activity, construction economic data from various sources, and general economic trends. We’ve compiled and analyzed this data, to present to you in an easy-to-understand format. Our report includes NCS’ Lien Index, key economic indicators and trends, as well as our assessment on impacts to future construction business.
NCS’ Lien Index compares mechanic’s lien data quarter over quarter. The standard is zero (“0”), with a number greater than 0 representing an increase in mechanic’s lien activity and less than 0 representing a decrease in mechanic’s lien activity.
The Lien Index decreased 9.6% in Q2, following two quarters of increased mechanic’s lien activity (Q4 2020 and Q1 2021). The Q2 drop in mechanic’s lien activity was generally expected, and more so as the industry continues to adjust to pre-COVID economic and seasonal norms.
NCS Lien Index Key Influencers
- Project backlogs are at a two year high, with an average of 8.5 months.
- Inflation has caused slowdown in residential construction.
- Nonresidential contractors predict strong rebound activity through the end of 2021.
- After months of rapid rebound, total construction spending has leveled off in Q2.
- Private construction spending continues to increase, though the increase has slowed due to high cost of materials.
- Public construction spending continues to decrease with a reported 12-month low in June.
- Total construction employment continues a 12-month upward trend.
- Residential construction employment has maintained steady growth.
- Nonresidential construction employment has experienced periodic drops but maintains overall growth.