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

Sponsored | | Jun 18, 2015

How to earn respect as a leader

Employees will give you minimum effort if the only reason they respect you is for your authority

Building Materials | Jun 12, 2015

Construction materials prices up in May, down year-over-year

Prices for inputs to construction industries rose by 1.1% in May—the largest month-over-month increase in more than two years.

Office Buildings | Jun 12, 2015

Houston's energy sector keeps office construction humming

Colliers International projects continued expansion this year in its quarterly report on national office market. 

Office Buildings | Jun 11, 2015

Pop-up tree-office opens in London borough of Hackney

London's Hackney borough welcomed a new kind of workspace to Hoxton Square—the TreexOffice.

Office Buildings | Jun 9, 2015

Hines planning $300 million office tower for Denver skyline

Designed by Pickard Chilton, the 640,000-sf tower is geared for large-scale tenants, with features like floor-to-ceiling glass, a 5,000-sf fitness center, a tenant lounge, and a series of outdoor terraces. 

Sponsored | Building Team | Jun 9, 2015

Is your firm social enough?

The overwhelming majority of A/E/C firms are engaged in social media. But to what end? 

Contractors | Jun 8, 2015

ABC: 49 states report decline in construction unemployment rate

Five Plain States reported the lowest unemployment rates for construction workers in April. 

Sponsored | Metals | Jun 4, 2015

How big of a building do I need?

Here is some advice on how metal buildings can be a solution for space shortages

Sponsored | Building Team | Jun 3, 2015

Succession planning starts with developing your leaders

Two-thirds of U.S. companies still admit that they have no formal succession plan in place, a 2014 survey conducted by the National Association of Corporate Directors found.

Building Team | Jun 3, 2015

Irvin E. Richter of Hill International receives Lifetime Achievement Award from CMAA's Mid-Atlantic Chapter

The award was given in recognition of his dedication, innovation and leadership in the area of project management and construction claims services

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