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
AIA Course: Building with concrete – Design and construction techniques
Concrete maintains a special reputation for strength, durability, flexibility, and sustainability. These associations and a host of other factors have made it one of the most widely used building materials globally in just one century. Take this free AIA/CES course from Building Design+Construction and earn 1.0 AIA learning unit.
| Aug 11, 2010
Blue-Light Schoolhouses
Add the explosion in the number of school-aged kids nationally to the glut of huge, vacant stores in many communities and what do you get? Big boxes being turned into schools. For districts facing population pressure, these empty retail buildings can be the key to creating classrooms quickly, and at a significant cost advantage.
| Aug 11, 2010
Great Solutions: Green Building
27. Next-Generation Green Roofs Sprout up in New York New York is not particularly known for its green roofs, but two recent projects may put the Big Apple on the map. In spring 2010, the Lincoln Center for the Performing Arts will debut one of the nation's first fully walkable green roofs. Located across from the Juilliard School in Lincoln Center's North Plaza, Illumination Lawn will consist ...
| Aug 11, 2010
Loft Condo Conversion That's Outside the Box
Few people would have taken a look at a century-old cigar box factory with crumbling masonry and rotted wood beams and envisioned stylish loft condos, but Miles Development Partners did just that. And they made that vision a reality at Box Factory Lofts in historic Ybor City, Fla. Once the largest cigar box plant in the world, the Tampa Box Company produced boxes of many shapes and sizes, spec...
| Aug 11, 2010
Idea Center at Playhouse Square: A better idea
Through a unique partnership between a public media organization and a performing arts/education entity, a historic building in the heart of downtown Cleveland has been renovated as a model of sustainability and architectural innovation. Playhouse Square, which had been working for more than 30 years to revitalize the city's arts district, teamed up with ideastream, a newly formed media group t...
| Aug 11, 2010
Pioneer Courthouse: Shaking up the court
In the days when three-quarters of America was a wild, lawless no-man's land, Pioneer Courthouse in Portland, Ore., stood out as a symbol of justice and national unity. The oldest surviving federal structure in the Pacific Northwest and the second-oldest courthouse west of the Mississippi, Pioneer Courthouse was designed in 1875 by Alfred Mullett, the Supervising Architect of the Treasury.
| Aug 11, 2010
Divine intervention
Designed by H. H. Richardson in the 1870s to serve the city's burgeoning Back Bay neighborhood, Trinity Church in the City of Boston would come to represent the essence of the Richardsonian Romanesque style, with its clay tile roof, abundant use of polychromy, rough-faced stone, heavy arches, and massive size.
| Aug 11, 2010
Westin Hotel
Mid-twentieth-century projects are in a state of limbo. In many cities, safeguards against quick demolition don't even cover “new” buildings built after 1939, yet many such buildings may be obsolete by current standards. The Farmers and Mechanics Savings Bank, located in downtown Minneapolis, was one such building, a rare example of architecture from a time when American design was ...
| Aug 11, 2010
Dream Fields, Lone Star Style
How important are athletic programs to U.S. school districts? Here's one leading indicator: In 2005, the National Football League sold 17 million tickets. That same year, America's high schools sold an estimated 225 million tickets to football games, according to the American Football Coaches Association.
| Aug 11, 2010
Platinum Award: Monumentally Hip Hotel Conversion
At one time the tallest building west of the Mississippi, the Foshay Tower has stood proudly on the Minneapolis skyline since 1929. Built by Wilbur Foshay as a tribute to the Washington Monument, the 30-story obelisk served as an office building—and cultural icon—for more than 70 years before the Ryan Companies and co-developer RWB Holdings partnered with Starwood Hotels & Resor...
