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
| Aug 11, 2010
10 tips for mitigating influenza in buildings
Adopting simple, common-sense measures and proper maintenance protocols can help mitigate the spread of influenza in buildings. In addition, there are system upgrades that can be performed to further mitigate risks. Trane Commercial Systems offers 10 tips to consider during the cold and flu season.
| Aug 11, 2010
Reed Construction Data files corporate espionage lawsuit against McGraw-Hill Construction Dodge
Reed Construction Data (RCD), a leading construction information provider and a wholly-owned subsidiary of Reed Elsevier (NYSE:RUK, NYSE:ENL), today filed suit in federal court against McGraw-Hill Construction Dodge, a unit of The McGraw-Hill Companies, Inc. (NYSE:MHP). The suit charges that Dodge has unlawfully accessed confidential and trade secret information from RCD since 2002 by using a series of fake companies to pose as RCD customers.
| Aug 11, 2010
Jacobs, HOK top BD+C's ranking of the 75 largest state/local government design firms
A ranking of the Top 75 State/Local Government Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Brad Pitt’s foundation unveils 14 duplex designs for New Orleans’ Lower 9th Ward
Gehry Partners, William McDonough + Partners, and BNIM are among 14 architecture firms commissioned by Brad Pitt's Make It Right foundation to develop duplex housing concepts specifically for rebuilding the Lower 9th Ward in New Orleans. All 14 concepts were released yesterday.
| Aug 11, 2010
Gilbane's Fox Network Center earns National Excellence in Construction Award
Gilbane Building Company’s work on Fox Network Center in Houston, Texas, has earned the company an Eagle Award in the Commercial - $25-million - $100-million category of ABC’s Excellence in Construction Awards. Gilbane’s representatives received the award during the 19th annual Excellence in Construction Awards celebration.
| Aug 11, 2010
NAVFAC releases guidelines for sustainable reconstruction of Navy facilities
The guidelines provide specific guidance for installation commanders, assessment teams, estimators, programmers and building designers for identifying the sustainable opportunities, synergies, strategies, features and benefits for improving installations following a disaster instead of simply repairing or replacing them as they were prior to the disaster.