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 increased slightly to -9.03% in Q3, up approximately .5% over Q2. Throughout Q3, national mechanic’s lien activity remained relatively flat, though there were some significant changes regionally. We anticipate an increase in mechanic’s lien activity in Q4. Although a Q4 increase would be in line with seasonal trends, the industry will continue to contend with the strain on the costs and availability of materials and labor.
NCS Lien Index Key Influencers
- Project backlogs remain positive, however have dropped throughout Q3 from 8.5 to 7.6 months, as contractor confidence declines.
- Architecture Billings Index dipped from its all-time high, but remains strong.
- Nonresidential contractors expect strong activity over the next 6 months.
- After several months on the rise, total construction spending ended Q3 down. Though, year over year, spending is up nearly 8%.
- As material prices continue to rise, Q3 saw an expected decline in private construction spending.
- Public construction spending rose throughout July and August but ended Q3 with a decline.
- Total construction employment inched higher throughout Q3.
- Residential construction employment continued its 12-month steady-paced increase.
- Nonresidential construction employment dipped in the beginning of Q3, recovering in September.