Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to nine months in May from 8.8 months in April, according to an ABC member survey conducted May 17 to June 3. The reading is up one month from May 2021.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for May 2022.
Backlog in the infrastructure segment jumped from 8.7 months in April to 9.3 months in May, and the Northeast and South regions continue to outperform the Middle States and the West. Contractors with more than $100 million in annual revenues enjoyed the highest backlog, at 13.2 months.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels declined in May. The indices for sales and staffing remain above the threshold of 50, indicating expectations of growth over the next six months, while the reading for profit margins was exactly 50 for the month.
“It is simply remarkable that contractors continue to add to backlog amidst global strife, rising materials prices and ubiquitous labor force challenges,” said ABC Chief Economist Anirban Basu. “Backlog is up in every segment over the past year, including in the somewhat shaky commercial category. The largest increase in backlog has been registered in the industrial segment. More American companies are committing to place additional supply chain capacity in the United States, with Intel and Ford representing particularly recent and noteworthy examples.
“For contractors, the challenge will continue to be the cost of delivering construction services,” said Basu. “The risk of severe increases in costs and substantial delays in delivery remains elevated given the volatility in input prices, the propensity of the labor force to shift jobs in large numbers and equipment shortages and delays. This ABC survey indicates that the proportion of contractors who expect that profit margins will expand over the next six months is declining, a reflection of lingering, worsening supply chain challenges.”
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
Office Buildings | Apr 4, 2017
Amazon’s newest office building will be an ‘urban treehouse’
The building will provide 405,000 sf of office space in downtown Seattle.
Healthcare Facilities | Mar 31, 2017
The cost of activating a new facility
Understanding the costs specifically related to activation is one of the keys to successfully occupying the new space you’ve worked so hard to create.
Architects | Mar 28, 2017
A restroom for everyone
Restroom access affects everyone: people with medical needs or disabilities, caretakers, transgender people, parents with children of the opposite gender, and really anyone with issues or needs around privacy.
Building Team | Mar 6, 2017
AEC firms: Your website is one of the most important things you'll build
Don’t believe it? You’d better take a look at the research.
Building Team | Mar 1, 2017
Intuitive wayfinding: An alternate approach to signage
Intuitive wayfinding is much like navigating via waypoints—moving from point to point to point.
Building Team | Feb 21, 2017
Artifacts down the street: Exploring urban archaeology
Archaeologists continually unearth artifacts in our cities. It's time to showcase them.
Building Team | Feb 2, 2017
HOK joins Well Living Lab Alliance sponsored by Delos and Mayo Clinic
The Well Living Lab studies the connection between health and the indoor environment to transform human health and well-being in places where we live, work, learn, and play.
Architects | Jan 24, 2017
Politicians use architectural renderings in bid to sell Chicago’s Thompson Center
The renderings are meant to show the potential of the site located in the heart of the Chicago Loop.
Designers | Jan 13, 2017
The mind’s eye: Five thoughts on cognitive neuroscience and designing spaces
Measuring how the human mind responds to buildings could improve design.
Building Team | Jan 11, 2017
Can design help close the nation's political divide?
Practically every building typology is evolving to meet the needs of the innovation economy. Why not legislative spaces?