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
Architects | Mar 28, 2017
A restroom for everyone
Restroom access affects everyone: people with medical needs or disabilities, caretakers, transgender people, parents with children of the opposite gender, and really anyone with issues or needs around privacy.
Building Team | Mar 6, 2017
AEC firms: Your website is one of the most important things you'll build
Don’t believe it? You’d better take a look at the research.
Building Team | Mar 1, 2017
Intuitive wayfinding: An alternate approach to signage
Intuitive wayfinding is much like navigating via waypoints—moving from point to point to point.
Building Team | Feb 21, 2017
Artifacts down the street: Exploring urban archaeology
Archaeologists continually unearth artifacts in our cities. It's time to showcase them.
Building Team | Feb 2, 2017
HOK joins Well Living Lab Alliance sponsored by Delos and Mayo Clinic
The Well Living Lab studies the connection between health and the indoor environment to transform human health and well-being in places where we live, work, learn, and play.
Architects | Jan 24, 2017
Politicians use architectural renderings in bid to sell Chicago’s Thompson Center
The renderings are meant to show the potential of the site located in the heart of the Chicago Loop.
Designers | Jan 13, 2017
The mind’s eye: Five thoughts on cognitive neuroscience and designing spaces
Measuring how the human mind responds to buildings could improve design.
Building Team | Jan 11, 2017
Can design help close the nation's political divide?
Practically every building typology is evolving to meet the needs of the innovation economy. Why not legislative spaces?
Building Team | Jan 10, 2017
Fiber canopies proposed to turn Phoenix streets into comfortable public space
The proposal was the winning entry in a design competition asking for ways to strengthen the identity of the Arizona city.
Building Team | Jan 6, 2017
CannonDesign launches REALIZE Life Safety Solutions
“The Final Rule presents a considerable update to the life safety directives most healthcare systems have become accustomed to,” says Joe Cassata, principal at CannonDesign.
