flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC’s Construction Backlog Indicator inches lower in July

Market Data

ABC’s Construction Backlog Indicator inches lower in July

Backlog in the heavy industrial category increased by 2.3 months and now stands at its highest level in the history of the CBI series.


By ABC | September 17, 2019

Associated Builders and Contractors reported today that its Construction Backlog Indicator fell to 8.5 months in July 2019, down 0.3 months or 2.9% from June 2019, when CBI stood at 8.8 months.

“Construction backlog declined in all four major regions in July,” said ABC Chief Economist Anirban Basu. “While the Northeast and South—the regions with the lengthiest backlog—experienced minor dips, the West and the Middle States exhibited more significant declines. Despite the 9.3% monthly decline in the West region, backlog remains above levels observed in early 2019. For the Middle States, however, backlog is at its lowest level since the last quarter of 2015, largely due to a dip in activity in the commercial/institutional segment, the largest segment represented in ABC’s survey.

“Among the three industry subsegments measured by CBI, only the commercial/institutional category experienced a backlog decrease in July 2019,” said Basu. “Backlog in the heavy industrial category increased by 2.3 months and now stands at its highest level in the history of the CBI series. This is largely attributable to the energy sector, with particular strength apparent in the South. Regions tied to traditional manufacturing activities did not fare as well in July.

“Only companies with revenues lower than $30 million per year experienced shorter backlog in July,” said Basu. “This may be cause for concern since smaller firms tend to be more vulnerable to economic fluctuations. Much of the decline in backlog among this group occurred among those specializing in commercial construction. 

“Despite the recent, albeit brief, losing streak, backlog levels remain consistent with healthy construction activity over the near-term,” said Basu. “Contractors collectively expect rising sales to continue and are planning to add to staffing levels, though their exuberance has been somewhat tempered in recent months. If the U.S. economy continues to soften, including in the nation’s manufacturing industry, contractor confidence levels will likely continue to subside along with backlog. Yet, for now, the nation’s nonresidential construction segment remains busy.”

 

 

 

 

 

Related Stories

Healthcare Facilities | Feb 18, 2021

The Weekly show, Feb 18, 2021: What patients want from healthcare facilities, and Post-COVID retail trends

This week on The Weekly show, BD+C editors speak with AEC industry leaders from JLL and Landini Associates about what patients want from healthcare facilities, based on JLL's recent survey of 4,015 patients, and making online sales work for a retail sector recovery.

Market Data | Feb 17, 2021

Soaring prices and delivery delays for lumber and steel squeeze finances for construction firms already hit by pandemic

Association officials call for removing tariffs on key materials to provide immediate relief for hard-hit contractors and exploring ways to expand long-term capacity for steel, lumber and other materials,

Market Data | Feb 9, 2021

Construction Backlog and contractor optimism rise to start 2021, according to ABC member survey

Despite the monthly uptick, backlog is 0.9 months lower than in January 2020.

Market Data | Feb 9, 2021

USGBC top 10 states for LEED in 2020

The Top 10 States for LEED green building is based on gross square feet of certified space per person using 2010 U.S. Census data and includes commercial and institutional projects certified in 2020.

Market Data | Feb 8, 2021

Construction employment stalls in January with unemployment rate of 9.4%

New measures threaten to undermine recovery.

Market Data | Feb 4, 2021

Construction employment declined in 2020 in majority of metro areas

Houston-The Woodlands-Sugar Land and Brockton-Bridgewater-Easton, Mass. have worst 2020 losses, while Indianapolis-Carmel-Anderson, Ind. and Walla Walla, Wash. register largest gains in industry jobs.

Market Data | Feb 3, 2021

Construction spending diverges in December with slump in private nonresidential sector, mixed public work, and boom in homebuilding

Demand for nonresidential construction and public works will decline amid ongoing pandemic concerns.

Market Data | Feb 1, 2021

The New York City market is back on top and leads the U.S. hotel construction pipeline

New York City has the greatest number of projects under construction with 108 projects/19,439 rooms.

Market Data | Jan 29, 2021

Multifamily housing construction outlook soars in late 2020

Exceeds pre-COVID levels, reaching highest mark since 1st quarter 2018.

Market Data | Jan 29, 2021

The U.S. hotel construction pipeline stands at 5,216 projects/650,222 rooms at year-end 2020

At the end of Q4 ‘20, projects currently under construction stand at 1,487 projects/199,700 rooms.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021