Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to 9.0 months in September, according to an ABC member survey conducted Sept. 20 to Oct. 5. The reading is 1.4 months higher than in September 2021.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for September 2022.
Backlog reached its highest level since May 2022 and is once again above the level observed at the start of the pandemic (8.9 months in February 2020). Backlog in heavy industrial increased sizably in September, spurred by a 21.5% year-over-year increase in manufacturing-related construction spending.
ABC’s Construction Confidence Index readings for profit margins and staffing levels increased in September, while the reading for sales moved slightly lower. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
“The construction confidence and backlog metrics appear strong despite the U.S. economy facing headwinds like inflation, financial market volatility and rapidly rising borrowing costs,” said ABC Chief Economist Anirban Basu. “Contractors remain decidedly upbeat, with backlog expanding and expectations for rising sales, employment and profit margins over the next six months.
“One would think the recent surge in interest rates would be enough to dampen contractor confidence,” said Basu. “Instead, project owners continue to move forward with a significant number of projects. Faced with high demand for their services, contractors continue to show pricing power, helping to offset rising compensation and other construction delivery costs.”
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
| Sep 18, 2012
MKK opens office in North Dakota
MKK is currently working on seven projects in North Dakota, including a hotel, restaurant, truck stop, office building, and apartment complex.
| Sep 13, 2012
Leo A Daly Company promotes Kraskiewicz to senior vice president
Kraskiewicz, who most recently served as chief operations officer for the Leo A Daly division, will guide brand management, business development, operations and financial performance for 18 offices worldwide.
| Sep 11, 2012
About 170 events planned nationwide for fourth annual SteelDay September 28
SteelDay is a national event featuring free educational and networking opportunities for the design and construction community and the public.
| Sep 11, 2012
New York City releases first energy benchmarking data for private buildings
City is first in U.S. to disclose private-sector building energy data from a mandatory benchmarking policy.
| Sep 7, 2012
Net-zero energy pioneers on the el-hi frontier
Getting to net-zero is not easy, but the promise of eliminating energy bills and using state-of-the-art technology as a learning lab can make a compelling case to reach for net-zero.
| Sep 7, 2012
The keys to success in the K-12 school market
When educators and school administrators describe their vision for new K-12 school buildings as ‘21st-century learning spaces,’ they’re not exaggerating. Many new schools are truly different in concept from their counterparts of only a few years ago.
| Aug 24, 2012
Skanska hires Miller as procurement manager
Miller brings more than 25 years of construction procurement expertise.
| Aug 24, 2012
KLMK Group forms strategic alliance with Taylor Construction Management
KLMK's expertise in the capital delivery process and TCM's global platform combine to provide an integrated solution with an unparalleled impact for health care related industries.
| Aug 24, 2012
Study predicts how health economic, delivery and buildings play a role in the next decade
Study also finds accountable care organizations, pay-for-performance and aging population will have greatest impact over next five years.
| Aug 24, 2012
ABI downturn moderates as negative conditions continue
South the only region reporting increase in design activity.