flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC’s construction backlog inches lower in June; Contractor confidence falters

Building Team

ABC’s construction backlog inches lower in June; Contractor confidence falters

Associated Builders and Contractors reports today that its Construction Backlog Indicator fell 0.1 months in June and stands at 8.9 months, according to an ABC member survey conducted June 21 to July 5.


By ABC | July 14, 2022
Construction Industry
Courtesy Pixabay.

Associated Builders and Contractors reports today that its Construction Backlog Indicator fell 0.1 months in June and stands at 8.9 months, according to an ABC member survey conducted June 21 to July 5. The reading is up 0.4 months from June 2021.

View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for June 2022.

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels declined in June. The indices for sales and staffing remain above the threshold of 50, indicating expectations of growth over the next six months, while the reading for profit margins fell below the threshold of 50 for the first time since October 2021.

“Several months ago, there was conjecture that contractors were generally too upbeat regarding their collective future,” said ABC Chief Economist Anirban Basu. “Increasingly, the data suggest that they were. At the time, many contractors reported surging backlog and an ability to pass along hefty cost increases to project owners. For months, contractors expected sales, employment and margins to expand. The most recent ABC survey indicates that, to secure work and to induce project starts, a growing fraction of contractors is having to trim margins.

“While circumstances are hardly catastrophic, the nonresidential construction marketplace is not as strong as it was expected to be,” said Basu. “Many factors are involved, including materials prices that have remained stubbornly elevated and construction skills shortages that have refused to dissipate.

“In the context of rising fears of recession and rising borrowing costs, the stage has been set for softer nonresidential construction activity going forward," said Basu. "That said, public contractors can expect to remain busy in the context of a significant infrastructure spending package. Still, the market may not prove as robust as anticipated given delayed project start dates as public agencies determine the right moment to purchase construction services. Despite all of these considerations, contractors continue to expect industry sales and employment to expand over the next six months.”

ABC Construction Backlog Indicator & Construction Confidence
Courtesy ABC.

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month’s work under contract based on the latest financials available, while CCI measures contractors’ outlook for the next six months.

Related Stories

Building Team | Jun 13, 2022

Partnership rethinks emergency shelters to turn them into sustainable, resilient homes

Holcim and the Norman Foster Foundation have struck a partnership to rethink emergency shelters to turn them into sustainable and resilient homes.

Building Team | Jun 13, 2022

A mixed-used building to rise above Fort Lauderdale, with views of downtown and the ocean

ODA, a New York-based architecture and design studio, recently released renderings of Ombelle, a project including two residential towers in Fort Lauderdale, Fla. 

Office Buildings | Jun 13, 2022

San Antonio’s electric utility HQ to transform into a modern office building

In San Antonio, Tex., the former headquarters of CPS Energy, the city’s electric utility, is slated to transform into 100,000 square feet of office and retail space on San Antonio’s famed River Walk.

Cultural Facilities | Jun 10, 2022

After 10 Years, Taiwan’s new Taipei Music Center Reaches the Finish Line

RUR Architecture has finished the Taipei Music Center (TMC), turning a 22-acre (9-hectare) site into a new urban arts district.

Building Technology | Jun 9, 2022

GSA Green Proving Ground program selects six innovative building technologies for evaluation

The U.S. General Services Administration’s (GSA) Green Proving Ground program, in collaboration with the U.S. Department of Energy, has selected six innovative building technologies for evaluation in GSA’s inventory.

University Buildings | Jun 9, 2022

IDEA Factory at U. of Maryland defies gravity

The E.A. Fernandez IDEA Factory at the University of Maryland’s A. James Clark School of Engineering has a gravity-defying form: The seven-story building’s solid upper floors emerge above the lighter, mostly glass base.

Multifamily Housing | Jun 9, 2022

Cityview's Adam Perry on multifamily housing innovation in the Western U.S.

Adam Perry, SVP of Development and Construction Management with developer Cityview, chats with Multifamily Design+Construction Editor Rob Cassidy about the latest design and construction innovations for multifamily housing in the West. 

Libraries | Jun 8, 2022

Welcome to the hybrid library

Libraries have grown to become the intellectual and social hubs of campus, where, prior to March 2020, students, researchers, and faculty gathered to collaborate and connect.

Building Team | Jun 8, 2022

Alastair MacGregor to lead WSP USA Property and Buildings Business

Alastair (Aly) MacGregor has been named the executive business line leader for Property and Buildings at WSP USA, one of the nation’s largest engineering and professional services consultancies.

Codes and Standards | Jun 8, 2022

Florida Legislature passes bill requiring stricter condominium inspection

The Florida Legislature recently passed a bill to beef up building inspection requirements for many of the state’s condominiums.

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