Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.0 months in February, according to an ABC member survey conducted Feb. 21 to March 8. The reading is down 0.2 months from February 2021.
View ABCâs Construction Backlog Indicator and Construction Confidence Index tables for February 2022.
Survey respondents in all four regions cited labor and material availability and costs as the factors chipping away at their backlog, while a few respondents in the Midwest cited winter weather as a frustrating factor.
ABCâs Construction Confidence Index readings for sales and staffing increased in February, while the reading for profit margins inched lower. All three indices remain above the threshold of 50, indicating expectations of growth over the next six months.
âThe level of demand for construction services is simply staggering,â said ABC Chief Economist Anirban Basu. âDespite sky-high materials prices, surging compensation costs and attendant impacts on bids, many project owners continue to move forward with projects because they recognize construction costs could rise even further. There is also significant investment capital flowing through the economy in search of yield. Real estate projects often satisfy the need to deploy considerable capital quickly, but only if construction is permitted to move forward.
âAccordingly, despite elevated costs and workforce challenges, construction backlog remains stable,â said Basu. âBacklog would likely be rising rapidly if costs were more stable. Nonetheless, construction confidence indicators continue to improve. Collectively, contractors expect sales and employment to expand over the next six months. But what is far more remarkable is the expectation that profit margins will expand, indicating that demand for construction services remains elevated enough to countervail cost increases as we head into the heart of 2022.â
Â
Related Stories
Mixed-Use | May 22, 2024
Multifamily properties above ground-floor grocers continue to see positive rental premiums
Optimizing land usage is becoming an even bigger priority for developers. In some city centers, many large grocery stores sprawl across valuable land.
Office Buildings | May 20, 2024
10 spaces that are no longer optional to create a great workplace
Amenities are no longer optional. The new role of the office is not only a place to get work done, but to provide a mix of work experiences for employees.
Contractors | May 15, 2024
The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of April 2024
Associated Builders and Contractors reported that its Construction Backlog Indicator increased to 8.4 months in April, according to an ABC member survey conducted April 22 to May 6. The reading is down 0.5 months from April 2023, but expanded 0.2 months from the prior month.
MFPRO+ News | May 13, 2024
Special multifamily report indicates âtwo supply scenariosâ
Could we be headed towards a âperiod of stagflation?â That's the question Andrew Semmes, Senior Research Analyst, poses in the Matrix May 2024 Multifamily Rent Forecast update.
Adaptive Reuse | May 9, 2024
Hotels now account for over one-third of adaptive reuse projects
For the first time ever, hotel to apartment conversion projects have overtaken office-to-residential conversions.
MFPRO+ News | May 8, 2024
Multifamily rent growth approaches peak levels in April 2024
In its latest multifamily report, Yardi Matrix finds that the national average rent has increased for the second month in a row.
MFPRO+ Special Reports | May 6, 2024
Top 10 trends in affordable housing
Among affordable housing developers today, thereâs one commonality tying projects together: uncertainty. AEC firms share their latest insights and philosophies on the future of affordable housing in BD+C's 2023 Multifamily Annual Report.
AEC Tech | Apr 30, 2024
Lack of organizational readiness is biggest hurdle to artificial intelligence adoption
Managers of companies in the industrial sector, including construction, have bought the hype of artificial intelligence (AI) as a transformative technology, but their organizations are not ready to realize its promise, according to research from IFS, a global cloud enterprise software company. An IFS survey of 1,700 senior decision-makers found that 84% of executives anticipate massive organizational benefits from AI.Â
AEC Innovators | Apr 15, 2024
3 ways the most innovative companies work differently
Genslerâs pre-pandemic workplace research reinforced that great workplace design drives creativity and innovation. Using six performance indicators, we're able to view workersâ perceptions of the quality of innovation, creativity, and leadership in an employeeâs organization.
MFPRO+ News | Apr 12, 2024
Greystar becomes top apartment owner, manager, and developer in 2024
One firm set records for this yearâs National Multifamily Housing Council Top 50 roundup of multifamily firms. Greystar now sits at number one in the NMHCâs lists for top apartment owner, manager, and developer in 2024.