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](/sites/default/files/inline-images/ABC%20Construction%20Backlog%20Indicator%20%26%20Construction%20Confidence%20Index%2C%202012%20to%20June%202022.png)
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
Populous selected to design 'crystalline skin' stadium for 2014 Winter Olympics
Russian officials have selected global architect Populous to design the main stadium for the 2014 Winter Olympic and Paralympic Games in Sochi, Russia. The 40,000-seat stadium will feature a crystalline skin that "engages with its surroundings by day and provides an iconic representation of the color and spectacle of the games when illuminated at night," said Populous senior principal John Barrow.
| Aug 11, 2010
Skanska completes $74 million Harbor Towers project six months ahead of schedule
Skanska USA Building Inc. announced the completion of a $74 million rehabilitation project at Harbor Towers, a 40-story luxury condominium complex comprising two towers located on Boston’s waterfront. Skanska served as Program Manager and oversaw the repair and replacement work that dramatically enhanced the reliability, cost-effectiveness, and energy efficiency of the buildings’ MEP systems.
| Aug 11, 2010
ASHRAE research targets tying together BIM and energy efficiency
Ensuring that a common language of “energy efficiency” is spoken by both building information modeling software used by architects and energy analysis and simulation software used by engineers is the goal of new research funded by ASHRAE.
| Aug 11, 2010
M&A deal volume down 67% in engineering/construction sector: PricewaterhouseCoopers
Global Economic Uncertainty Results in Sluggish Deal Activity in U.S.; China Shows Significant Opportunity for Growth
| Aug 11, 2010
New Watt Stopper emergency relay panel
Watt Stopper/Legrand has developed a new relay panel to provide fail-safe emergency lighting in a variety of commercial settings. The Emergency Relay Panel option is UL924 listed for use on emergency circuits. It is available as an option with Watt Stopper’s 24 or 48 relay size Lighting Integrator (LI) low voltage lighting control panels.
| Aug 11, 2010
Three Opus Corporation companies file for bankruptcy
Opus Corporation, a developer headquartered in Minnetonka, Minn., filed for bankruptcy in three of its five regional operating companies: Opus East, Opus South, and Opus West. CEO Mark Rauenhorst said sharp declines in commercial real estate values and tight credit markets caused difficulties in refinancing assets and restructuring lending agreements.
| Aug 11, 2010
ZweigWhite names its fastest-growing architecture, engineering, and environmental firms
Management consulting and research firm ZweigWhite has identified the 200 fastest-growing architecture, engineering, and environmental consulting firms in the U.S. and Canada for its annual ranking, The Zweig Letter Hot Firm List. This annual list features the design and environmental firms that have outperformed the economy and competitors to become industry leaders.
| Aug 11, 2010
'Too cold' and 'too hot' most common complaints among office workers, says IFMA study
The International Facility Management Association has released “Temperature Wars: Savings vs. Comfort,” a new study that takes an in-depth look at the most common thermal complaints made by workers and the variety of ways facility professionals respond to them.For many years, IFMA has surveyed facility professionals to learn the top office complaints among employees.