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
University of La Verne opens new campus center designed by Gonzalez Goodale Architects
Construction has been completed on a new campus center designed by the noted Pasadena-based institutional architecture firm Gonzalez Goodale Architects for University of La Verne that will help create a new identity for the venerable institution. The Sara & Michael Abraham Campus Center will be dedicated on September 10 at 3 p.m., in a ceremony attended by campus officials and other local dignitaries.
| Aug 11, 2010
Thom Mayne unveils 'floating cube' design for the Perot Museum of Nature and Science in Dallas
Calling it a “living educational tool featuring architecture inspired by nature and science,” Pritzker Prize Laureate Thom Mayne and leaders from the Museum of Nature & Science unveiled the schematic designs and building model for the Perot Museum of Nature & Science at Victory Park. Groundbreaking on the approximately $185 million project will be held later this fall, and the Museum is expected to open by early 2013.
| Aug 11, 2010
SOM's William F. Baker awarded Fritz Leonhardt Prize for achievement in structural engineering
In recognition of his engineering accomplishments, which include many of the tallest skyscrapers of our time, William F. Baker received the coveted Fritz Leonhardt Prize in Stuttgart, Germany. He is the first American to receive the prize.
| Aug 11, 2010
Theater Renovation—A First-Class Production
In 1985, the city of San Diego ordered the historic Balboa Theatre, its beleaguered performing arts center, to be shuttered due to seismic safety concerns. It would take another two decades to restore the landmark building.
| Aug 11, 2010
Green roof professional designation launches in Canada
Green Roofs for Healthy Cities (GRHC), the North American Green Roof Industry Association, is pleased to announce the Canadian Green Roof Professional (GRP) Accreditation launch on October 19, 2009 at the CitiesAlive World Green Roof Infrastructure Congress in Toronto, Canada, hosted by GRHC, the City of Toronto, and the World Green Roof Infrastructure Network.
| Aug 11, 2010
American Concrete Institute forms technical committee on BIM for concrete structures
The American Concrete Institute (ACI) announces the formation of a new technical committee on Building Information Modeling (BIM) of Concrete Structures.
| Aug 11, 2010
Former Colorado Governor Bill Owens retained by PCL Construction as senior advisor
Bill Owens, former Colorado Governor, has been retained by PCL Construction as senior advisor for the company’s U.S. operations, headquartered in Denver, Colorado. The PCL family of companies collectively form the seventh largest contracting organization in the U.S. with major offices in 29 locations across North America, the Hawaiian Islands, and the Caribbean.
| Aug 11, 2010
Kansas City Music Hall and Municipal Auditorium
Kansas City, Mo.
The show will go on in Kansas City’s beloved Music Hall and Municipal Auditorium thanks to a fast-track renovation and expansion project that brought the 72-year-old Art Deco playhouse up to 21st-century standards.
