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

Cultural Facilities | Feb 25, 2015

Bjarke Ingels designs geodesic dome for energy production, community use

A new building in Uppsala, Sweden, will serve as a power plant during the winter and a venue for shows, festivals, and music events during the warm months.

Cultural Facilities | Feb 25, 2015

Edmonton considering 'freezeway' to embrace winter

If the new Edmonton Freezeway is constructed, residents will have an 11-km course that winds through the city and allows them to skate to work, school, and other city activities.

Sponsored | Building Team | Feb 24, 2015

What your employees really want

Here are key aspects of a job that keep employees happy

Building Team | Feb 24, 2015

Call for entries: 2015 Giants 300 survey

The annual Giants 300 Report ranks the top AEC firms in commercial construction, by revenue. 

| Feb 23, 2015

Where are the iconic green buildings?

What does a green building look like? How would you know one if you saw one? Maybe a trivial question to some, but of great interest to architects, designers, and other members of the Building Team as the rapid evolution of sustainable buildings continues apace.

Engineers | Feb 20, 2015

PwC reports record year for M&A activity in engineering and construction

Worldwide engineering and construction industries closed 218 M&A deals in 2014 worth more than $172 billion, according to a PwC report.

Building Materials | Feb 19, 2015

Prices for construction materials fall in January, following plummet of oil prices

The decline in oil and petroleum prices finally showed up in the produce price index data, according to ABC Chief Economist Anirban Basu.

Sponsored | Building Team | Feb 17, 2015

Why diversity matters

Companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians.

Sponsored | Modular Building | Feb 17, 2015

When lava flow in Hawaii threatens a public school district, officials turn to modular

Hawaii Modular Space, a Williams Scotsman company, designed temporary classroom space for the Pahoa and Keeau schools that would become displaced due to ongoing lava flow in Pahoa, Hawaii.

Mixed-Use | Feb 13, 2015

First Look: Sacramento Planning Commission approves mixed-use tower by the new Kings arena

The project, named Downtown Plaza Tower, will have 16 stories and will include a public lobby, retail and office space, 250 hotel rooms, and residences at the top of the tower. 

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