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
Harvard Law School Wood-Framed Houses
Cambridge, Mass.
A century ago, majestic Victorian homes lined Massachusetts Avenue in Boston, but few of these grande dames still survive. Harvard Law School owned three such beauties, which they used for office and research space. Unfortunately, the houses occupied prime real estate on which the school planned to build a new academic center. Rather than raze the historic wood-frame homes, the law school made it a priority to repurpose them.
| Aug 11, 2010
Rice concrete can cut greenhouse emissions
Rajan Vempati of ChK Group, Inc. in Plano, Texas, and a team of researchers found a way to make nearly carbon-free rice husk ash for concrete, which can lead to a boom in green construction.
| Aug 11, 2010
iSqFt acquires technology and key assets of Plan Express Inc.
Today iSqFt, the nation’s leading online preconstruction network, announced it has purchased the technology and key assets of Plan Express, Inc., a partner document-sharing network.
| Aug 11, 2010
ZweigWhite Announces 2009 Best Firms to Work For
Management consulting and research firm ZweigWhite has identified the best civil engineering, structural engineering, multidiscipline A/E services, environmental services, and architecture firms to work for in its annual ranking of top industry firms. These outstanding employers were selected based on their commitment to provide a positive work environment and challenging and interesting work opportunities for their employees.
| Aug 11, 2010
Autodesk 2010 Certification Now Available for Design Professionals
Autodesk, Inc., (Nasdaq: ADSK), today announced that design and engineering professionals can become Autodesk Certified in AutoCAD 2010, Autodesk Inventor 2010, Autodesk Revit Architecture 2010, and AutoCAD Civil 3D 2010 software. Becoming Autodesk Certified allows professionals, and companies boasting Autodesk Certified employees, to validate their industry skills and knowledge, demonstrate expertise and gain credibility.