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 19, 2018

August architecture firm billings rebound as building investment spurt continues

Southern region, multifamily residential sector lead growth.

Market Data | Sep 18, 2018

Altus Group report reveals shifts in trade policy, technology, and financing are disrupting global real estate development industry

International trade uncertainty, widespread construction skills shortage creating perfect storm for escalating project costs; property development leaders split on potential impact of emerging technologies.

Sponsored | Market Data | Sep 17, 2018

Construction Contract Issues?

Market Data | Sep 17, 2018

ABC’s Construction Backlog Indicator hits a new high in second quarter of 2018

Backlog is up 12.2% from the first quarter and 14% compared to the same time last year.

Market Data | Sep 12, 2018

Construction material prices fall in August

Softwood lumber prices plummeted 9.6% in August yet are up 5% on a yearly basis (down from a 19.5% increase year-over-year in July).

Market Data | Sep 7, 2018

Safety risks in commercial construction industry exacerbated by workforce shortages

The report revealed 88% of contractors expect to feel at least a moderate impact from the workforce shortages in the next three years.

Market Data | Sep 5, 2018

Public nonresidential construction up in July

Private nonresidential spending fell 1% in July, while public nonresidential spending expanded 0.7%.

Market Data | Aug 30, 2018

Construction in ASEAN region to grow by over 6% annually over next five years

Although there are disparities in the pace of growth in construction output among the ASEAN member states, the region’s construction industry as a whole will grow by 6.1% on an annual average basis in the next five years.

Market Data | Aug 22, 2018

July architecture firm billings remain positive despite growth slowing

Architecture firms located in the South remain especially strong.

Market Data | Aug 15, 2018

National asking rents for office space rise again

The rise in rental rates marks the 21st consecutive quarterly increase.

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