flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC’s Construction Backlog Indicator rebounds in August

Market Data

ABC’s Construction Backlog Indicator rebounds in August

The primary issue for most contractors is not a lack of demand, but an ongoing and worsening shortage of skilled workers available to meet contractual requirements.


By ABC | October 23, 2019

Associated Builders and Contractors reported today that its Construction Backlog Indicator climbed to nine months in August 2019, up 0.5 months or 5.4% from July 2019, when CBI stood at 8.5 months.

“Despite some other leading indicators suggesting weakening in nonresidential construction spending, our most recent backlog readings show that contractors are still experiencing significant demand for construction services” said ABC Chief Economist Anirban Basu. “The primary issue for most contractors is not a lack of demand, but an ongoing and worsening shortage of skilled workers available to meet contractual requirements. 

“Though this month’s report was generally positive, softening activity in the nation’s manufacturing sector is becoming more apparent in construction data,” said Basu. “Specifically, backlog in the heavy industrial category slipped to 7.7 months in August, a decline of 12%. A number of key manufacturing indicators have been weakening of late, including capacity utilization and the Institute for Supply Management’s index for manufacturing. It appears that the slowdown in factory activity is now being reflected in construction spending data.

“By contrast, backlog for those involved in heavy highway projects or other forms of infrastructure reached 10.4 months, an increase of nearly 13%,” said Basu. “The implication is that state and local governments are leveraging stronger fiscal positions and lower borrowing costs to move forward with more infrastructure projects. Not only is this a source of strength for the U.S. economy, it is helping to support overall nonresidential construction spending. Growing contractual volume in the infrastructure category helped to push backlog among Middle States contractors up to 8.8 months, a 1.8-month gain. Overall, backlog continues to be lengthiest in the South and West.” 

 

 

Related Stories

Market Data | Sep 22, 2016

Architecture Billings Index slips, overall outlook remains positive

Business conditions are slumping in the Northeast.

Market Data | Sep 20, 2016

Backlog skyrockets for largest firms during second quarter, but falls to 8.5 months overall

While a handful of commercial construction segments continue to be associated with expanding volumes, for the most part, the average contractor is no longer getting busier, says ABC Chief Economist Anirban Basu.

Designers | Sep 13, 2016

5 trends propelling a new era of food halls

Food halls have not only become an economical solution for restauranteurs and chefs experiencing skyrocketing retail prices and rents in large cities, but they also tap into our increased interest in gourmet locally sourced food, writes Gensler's Toshi Kasai.

Building Team | Sep 6, 2016

Letting your resource take center stage: A guide to thoughtful site selection for interpretive centers

Thoughtful site selection is never about one factor, but rather a confluence of several components that ultimately present trade-offs for the owner.

Market Data | Sep 2, 2016

Nonresidential spending inches lower in July while June data is upwardly revised to eight-year record

Nonresidential construction spending has been suppressed over the last year or so with the primary factor being the lack of momentum in public spending.

Industry Research | Sep 1, 2016

CannonDesign releases infographic to better help universities obtain more R&D funding

CannonDesign releases infographic to better help universities obtain more R&D funding.

Industry Research | Aug 25, 2016

Building bonds: The role of 'trusted advisor' is earned not acquired

A trusted advisor acts as a guiding partner over the full course of a professional relationship.

Multifamily Housing | Aug 17, 2016

A new research platform launches for a data-deprived multifamily sector

The list of leading developers, owners, and property managers that are funding the NMHC Research Foundation speaks to the information gap it hopes to fill.  

Hotel Facilities | Aug 17, 2016

Hotel construction continues to flourish in major cities

But concerns about overbuilding persist.

Market Data | Aug 16, 2016

Leading economists predict construction industry growth through 2017

The Chief Economists for ABC, AIA, and NAHB all see the construction industry continuing to expand over the next year and a half.

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