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

| Aug 24, 2012

Texas ACEC to host Morrissey Goodale's "One-Day MBA" seminar

This one-day blitz of business management training will include topics such as building a branding machine, the market for mergers & acquisitions, drama-less ownership transition, building high-performance teams, and transformational project management and delivery.

| Aug 21, 2012

Under 40 Leadership Summit slated for October 3-5 in Chicago

Attendees will be given an exclusive technical tour of Wrigley Field, led by Steven J. Jacobsen, CDP, who has been retained by the Chicago Cubs to create the business plan and high-level concepts to evaluate the feasibility of various renovation options for this iconic sports venue; and Carl Rice, Cubs’ Vice President, Baseball Operations.

| Aug 17, 2012

Centric Architecture and PLAD Studio merge

The new firm will retain Centric Architecture as its name.

| Aug 8, 2012

BD+C wins six B2B journalism awards

BD+C wins two national awards, three regional awards, and a regional Graphical Excellence award.

| Jul 18, 2012

Green expert Kats joins GreenWizard as an advisor

Kats' role is to help further expand GreenWizard’s impact in the sustainable construction industry.

| Jul 12, 2012

Cramer joins Gilbane’s NYC Business Development Team

New Business Development Manager brings over 30 years of experience to Gilbane.

| Jul 12, 2012

Cardoso joins Margulies Perruzzi Architects

Senior architect brings experience, leadership to firm’s healthcare practice.

| Jul 9, 2012

NELSON, Torchia announce merger

Former competitors seek competitive advantage by joining forces.

| Jun 13, 2012

Is it time to stop building convention centers?

Over the last 20 years, convention space in the United States has increased by 50%; since 2005, 44 new convention spaces have been planned or constructed in this country alone.

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