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 | Aug 2, 2017

Nonresidential Construction Spending falls in June, driven by public sector

June’s weak construction spending report can be largely attributed to the public sector.

Market Data | Jul 31, 2017

U.S. economic growth accelerates in second quarter; Nonresidential fixed investment maintains momentum

Nonresidential fixed investment, a category of GDP embodying nonresidential construction activity, expanded at a 5.2% seasonally adjusted annual rate.

Multifamily Housing | Jul 27, 2017

Apartment market index: Business conditions soften, but still solid

Despite some softness at the high end of the apartment market, demand for apartments will continue to be substantial for years to come, according to the National Multifamily Housing Council. 

Market Data | Jul 25, 2017

What's your employer value proposition?

Hiring and retaining talent is one of the top challenges faced by most professional services firms.

Market Data | Jul 25, 2017

Moderating economic growth triggers construction forecast downgrade for 2017 and 2018

Prospects for the construction industry have weakened with developments over the first half of the year.

Industry Research | Jul 6, 2017

The four types of strategic real estate amenities

From swimming pools to pirate ships, amenities (even crazy ones) aren’t just perks, but assets to enhance performance.

Market Data | Jun 29, 2017

Silicon Valley, Long Island among the priciest places for office fitouts

Coming out on top as the most expensive market to build out an office is Silicon Valley, Calif., with an out-of-pocket cost of $199.22.

Market Data | Jun 26, 2017

Construction disputes were slightly less contentious last year

But poorly written and administered contracts are still problems, says latest Arcadis report.

Industry Research | Jun 26, 2017

Time to earn an architecture license continues to drop

This trend is driven by candidates completing the experience and examination programs concurrently and more quickly.

Industry Research | Jun 22, 2017

ABC's Construction Backlog Indicator rebounds in 2017

The first quarter showed gains in all categories.

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