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 16, 2020

6 must reads for the AEC industry today: September 16, 2020

REI sells unused HQ building and Adjaye Associates will design The Africa Institute.

Market Data | Sep 15, 2020

7 must reads for the AEC industry today: September 15, 2020

Energy efficiency considerations for operating buildings during a pandemic and is there really a glass box paradox?

Market Data | Sep 14, 2020

6 must reads for the AEC industry today: September 14, 2020

63% of New York's restaurants could be gone by 2021 and new weapons in the apartment amenities arms race.

Market Data | Sep 11, 2020

5 must reads for the AEC industry today: September 11, 2020

Des Moines University begins construction on new campus and the role of urgent care in easing the oncology journey.

Market Data | Sep 10, 2020

6 must reads for the AEC industry today: September 10, 2020

Taipei's new Performance Hall and Burger King's touchless restaurant designs.

Market Data | Sep 9, 2020

6 must reads for the AEC industry today: September 9, 2020

What will the 'new normal' look like and the AIA hands out its Twenty-five Year Award.

Market Data | Sep 8, 2020

‘New normal’: IAQ, touchless, and higher energy bills?

Not since 9/11 has a single event so severely rocked the foundation of the commercial building industry.

Market Data | Sep 8, 2020

7 must reads for the AEC industry today: September 8, 2020

Google proposes 40-acre redevelopment plan and office buildings should be an essential part of their communities.

Market Data | Sep 4, 2020

6 must reads for the AEC industry today: September 4, 2020

10 Design to redevelop Nanjing AIrport and TUrner Construction takes a stand against racism.

Market Data | Sep 4, 2020

Construction sector adds 16,000 workers in August but nonresidential jobs shrink

Association survey finds contractor pessimism is increasing.

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