Associated Builders and Contractors reports today that its Construction Backlog Indicator rose to 8.5 months in June, according to an ABC member survey conducted June 20-July 6, 0.5 months higher than in May 2021 and 0.4 months higher than in June 2020.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased modestly in June. All three indices remain above the threshold of 50, indicating expectations of growth over the next six months.
“Nonresidential contractors continue to predict a strong rebound in activity over the balance of the year,” said ABC Chief Economist Anirban Basu. “Despite recent weakness in industry employment and spending data, contractors collectively remain upbeat. The neck-snapping pace of economic recovery, along with low financing costs and the return of projects that had been placed on the back burner during the pandemic, is translating into rising backlog and optimistic perspectives on employment, sales and profit margins.
“Rapidly rising materials prices was one of the leading threats to a vigorous nonresidential construction recovery; however, that factor has become a bit less concerning in recent weeks,” said Basu. “Still, materials prices are likely to remain meaningfully above pre-pandemic levels. Moreover, the shortage of skilled workers continues to worsen, driving up wages and project bids in the process. Demand for construction services is expected to be strong enough during the months ahead to allow contractors to pass many of these higher costs onto the purchasers of construction services, preserving margins in the process.”
Related Stories
Market Data | Oct 15, 2020
6 must reads for the AEC industry today: October 15, 2020
Chicago's Bank of America Tower opens and altering facilities for a post-COVID-19 world.
Market Data | Oct 14, 2020
6 must reads for the AEC industry today: October 14, 2020
Thailand's new Elephant Museum and the Art Gallery of New South Wales receives an expansion.
Market Data | Oct 13, 2020
5 must reads for the AEC industry today: October 13, 2020
Miami Beach Convention Center renovation completes and guidance offered for K-12 schools to support students with asthma.
Market Data | Oct 12, 2020
Majority of contractors fear long-term business implications of COVID-19, according to Construction Executive survey
While many contractors have not yet seen drastic impacts to their business, as construction was in many areas considered an “essential” service, the long-term implications are concerning.
Market Data | Oct 12, 2020
6 must reads for the AEC industry today: October 12, 2020
4 challenges of realizing BIM's value for an owner and Florida office property is designed for a post-Covid world.
Market Data | Oct 8, 2020
6 must reads for the AEC industry today: October 8, 2020
The first rendering of the National Medal of Honor Museum is unveiled and seven urgent changes needed to fix senior living.
Market Data | Oct 7, 2020
6 must reads for the AEC industry today: October 7, 2020
Water-filled windows' effect on energy and construction begins on PGA of America HQ.
Market Data | Oct 6, 2020
Construction sector adds 26,000 workers in September but nonresidential jobs stall
Many commercial firms experience project cancellations.
Market Data | Oct 6, 2020
6 must reads for the AEC industry today: October 6, 2020
Construction rises 1.4% in August while nonresidential construction spending falls slightly.
Market Data | Oct 5, 2020
Nonresidential construction spending falls slightly in August
Of the 16 nonresidential subcategories, nine were down on a monthly basis.