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.”
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 11, 2010
SAFTI FIRST hires Tim Nass as National Sales Manager
SAFTI FIRST, a leading USA manufacturer of fire rated glazing and framing systems, is pleased to announce the addition of Tim Nass as National Sales Manager. In his new role, Tim will be working closely with architects and contract glaziers in selecting the appropriate and most economical fire rated glazing solution for their project. He will also be coordinating SAFTI FIRST’s extensive network of architectural representatives throughout the United States.
| Aug 11, 2010
NCARB welcomes new board of directors
The National Council of Architectural Registration Boards (NCARB) introduces its Board of Directors for FY10, who were installed during the culmination of the Council’s 90th Annual Meeting and Conference in Chicago.
| Aug 11, 2010
Nonprofit healthcare providers turn to real estate for liquidity and to preserve capital, says Jones Lang LaSalle report
Long considered to be stable investments immune to recession, hospitals and other healthcare facilities are now feeling the effects of a cash-strapped economy as decreased charitable contributions are forcing nonprofit hospitals to pare back and seek new financing sources, according to Jones Lang LaSalle’s 2009 Healthcare Real Estate Financing Outlook.
| Aug 11, 2010
New CertainTeed Gypsum drywall compound reduces airborne dust by more than 70%
CertainTeed Gypsum launches two new revolutionary drywall compounds that significantly reduce the amount of dust traditionally associated with finishing gypsum walls and ceilings. The products—Dust Away Reduced Airborne Dust Drywall Compound and Renovation Mud—join CertainTeed’s Easi-Fil and ProRoc brands of finishing products currently available throughout Canada.
| Aug 11, 2010
Suffolk Construction Company acquires William A. Berry & Son
Suffolk Construction Company, New England’s largest construction company announced today that they have acquired William A. Berry & Son (Berry), the second largest construction company in the region. The two companies, both with deep New England roots and successful track-records, combined will have more than 1,200 employees and projected revenues of $2 billion.
| Aug 11, 2010
Polshek Partnership unveils design for University of North Texas business building
New York-based architect Polshek Partnership today unveiled its design scheme for the $70 million Business Leadership Building at the University of North Texas in Denton. Designed to provide UNT’s 5,400-plus business majors the highest level of academic instruction and professional training, the 180,000-sf facility will include an open atrium, an internet café, and numerous study and tutoring rooms—all designed to help develop a spirit of collaboration and team-oriented focus.
| Aug 11, 2010
University of Florida aiming for nation’s first LEED Platinum parking garage
If all goes as planned, the University of Florida’s new $20 million Southwest Parking Garage Complex in Gainesville will soon become the first parking facility in the country to earn LEED Platinum status. Designed by the Boca Raton office of PGAL to meet criteria for the highest LEED certification category, the garage complex includes a six-level, 313,000-sf parking garage (927 spaces) and an attached, 10,000-sf, two-story transportation and parking services office building.
| Aug 11, 2010
Aslaug Haraldsdottir, Ph.D. receives highest honor from the Society of Women Engineers
The Society of Women Engineers (SWE) is pleased to announce Aslaug Haraldsdottir, Ph.D. as the recipient of the 2009 SWE Achievement Award for accomplishments in Air Traffic Management, communication, navigation and surveillance system design, greatly influencing the future worldwide Air Traffic Management systems.
| Aug 11, 2010
Nonresidential construction will be down 14% in 2009; 17% in 2010, according to FMI report
FMI released its Construction Outlook: Second Quarter 2009 Report, and the outlook isn't good for the nonresidential market. FMI forecasts the market to decline 14% this year, followed by a 17% slide in 2010. FMI says that while the economy is showing some signs of improvement, it is just the beginning of the downfall for nonresidential construction.
