flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC’s Construction Backlog inches higher in May

Market Data

ABC’s Construction Backlog inches higher in May

Materials and labor shortages suppress contractor confidence.


By ABC | June 15, 2021

Associated Builders and Contractors reports today that its Construction Backlog Indicator rose to 8.0 months in May, according to an ABC member survey conducted from May 20 to June 2, 0.1 months higher than in April 2021 and May 2020.

 

 

While ABC’s Construction Confidence Index readings for sales increased modestly in May, confidence regarding profit margins and staffing levels slipped. All three indices remain above the threshold of 50, indicating expectations of growth over the next six months.

 

 

“Nonresidential construction backlog continues to edge higher, consistent with expectations that sales, profit margins and staffing will expand over the next six months,” said ABC chief economist Anirban Basu. “For at least four reasons, this represents an extraordinary set of findings.

“First, materials prices have risen significantly over the past year and labor costs are also on the rise,” said Basu. “All things equal, one might think this would suppress profit margin growth. Apparently, demand for construction services is strong enough to generate sufficient pricing power to more than fully countervail those factors. Second, skills shortages continue to impact the construction industry and many other segments. Despite that, the average nonresidential contractor expects to expand their teams during the months ahead.

“Third, conventional wisdom suggests that commercial real estate fundamentals are weak in the context of remote working, online shopping and sluggish business travel,” said Basu. “Nonetheless, backlog in the commercial category remains stable. Fourth and finally, while there has been much talk about a federal infrastructure plan, it remains elusive. Nonetheless, backlog in the infrastructure category rose significantly in May, perhaps a reflection of stronger state and local government balance sheets and associated increases in infrastructure outlays. In sum, contractors can expect healthy growth in activity through the balance of 2021.”

Related Stories

MFPRO+ Research | Oct 15, 2024

Multifamily rents drop in September 2024

The average multifamily rent fell by $3 in September to $1,750, while year-over-year growth was unchanged at 0.9 percent.

Contractors | Oct 1, 2024

Nonresidential construction spending rises slightly in August 2024

National nonresidential construction spending increased 0.1% in August, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.22 trillion.

The Changing Built Environment | Sep 23, 2024

Half-century real estate data shows top cities for multifamily housing, self-storage, and more

Research platform StorageCafe has conducted an analysis of U.S. real estate activity from 1980 to 2023, focusing on six major sectors: single-family, multifamily, industrial, office, retail, and self-storage.

Student Housing | Sep 17, 2024

Student housing market stays strong in summer 2024

As the summer season winds down, student housing performance remains strong. Preleasing for Yardi 200 schools rose to 89.2% in July 2024, falling just slightly behind the same period last year.

MFPRO+ Research | Sep 11, 2024

Multifamily rents fall for first time in 6 months

Ending its six-month streak of growth, the average advertised multifamily rent fell by $1 in August 2024 to $1,741.

Contractors | Sep 10, 2024

The average U.S. contractor has 8.2 months worth of construction work in the pipeline, as of August 2024

Associated Builders and Contractors reported today that its Construction Backlog Indicator fell to 8.2 months in August, according to an ABC member survey conducted Aug. 20 to Sept. 5. The reading is down 1.0 months from August 2023.

Construction Costs | Sep 2, 2024

Construction material decreases level out, but some increases are expected to continue for the balance Q3 2024

The Q3 2024 Quarterly Construction Insights Report from Gordian examines the numerous variables that influence material pricing, including geography, global events and commodity volatility. Gordian and subject matter experts examine fluctuations in costs, their likely causes, and offer predictions about where pricing is likely to go from here. Here is a sampling of the report’s contents.

Contractors | Aug 21, 2024

The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of July 2024

Associated Builders and Contractors reported today that its Construction Backlog Indicator held steady at 8.4 months in July, according to an ABC member survey conducted July 22 to Aug. 6. The reading is down 0.9 months from July 2023.

MFPRO+ Research | Aug 9, 2024

Apartment completions to surpass 500,000 for first time ever

While the U.S. continues to maintain a steady pace of delivering new apartments, this year will be one for the record books.

Contractors | Aug 1, 2024

Nonresidential construction spending decreased 0.2% in June

National nonresidential construction spending declined 0.2% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.21 trillion. Nonresidential construction has expanded 5.3% from a year ago.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021