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
Market Data | Jan 20, 2016
Architecture Billings Index ends year on positive note
While volatility persists, architecture firms reported healthy performance for 2015.
Industry Research | Dec 23, 2015
Meet the worldâs next great construction superpower
Thereâs a new world construction hotbed coming down the pike (more specifically, the Mumbai Nashik Expressway), and it could mean a major boon for AEC firms.
Industry Research | Dec 21, 2015
Experts predict commercial real estate trends for 2016
Midwest Experts Predict Commercial Real Estate Trends for 2016, according to real estate communications firm TaylorJohnson.
Industry Research | Dec 17, 2015
The 2016 commercial construction market: A contractorâs view
The CFO of Tocci Building Companies forecasts the outlook for commercial and institutional construction in 2016.
Office Buildings | Dec 9, 2015
HOK collaborates with IFMA on new workplace strategy research report
Report cites work-life balance as the top reason for implementing âdistributed workâ strategies.
Industry Research | Dec 8, 2015
AEC leaders say the 'talent wars' are heating up: BD+C exclusive survey
A new survey from Building Design+Construction shows that U.S. architecture, engineering, and construction firms are being stymied by the shortage of experienced design and construction professionals and project managers.
Market Data | Dec 7, 2015
2016 forecast: Continued growth expected for the construction industry
ABC forecasts growth in nonresidential construction spending of 7.4% in 2016 along with growth in employment and backlog.