flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC’s construction backlog rises in May; contractor confidence falters

Market Data

ABC’s construction backlog rises in May; contractor confidence falters

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.


By ABC. | June 15, 2022
ABC Construction Backlog Indicator
Courtesy Pixabay.

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.”

ABC Construction Backlog Indicator & Construction Confidence Index
Courtesy ABC.

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

Sponsored | Building Team | Nov 2, 2015

Recruiting for cultural fit

Hiring for culture fit doesn’t mean hiring people who are all the same

Building Team | Oct 28, 2015

Steven R. Zirkel named president of Metl-Span

Metl-Span announced that Steven R. Zirkel has joined the company as the new president. Metl-Span is an industry leader in providing insulated metal panel products for increasing usage in institutional, commercial, industrial and cold storage markets.

BIM and Information Technology | Sep 14, 2015

Is Apple's new iPad Pro a game changer for architects?

A stylus, split screen, and improved graphics make designing on the tablet easier.

Sponsored | Building Team | Aug 25, 2015

9 characteristics that distinguish leading A/E firms

By analyzing the “benchmark firms” selected from its annual surveys, PSMJ has identified several characteristics that distinguish top performers

Office Buildings | Aug 24, 2015

British company OpenDesk offers open-sourced office furniture

Offices can “download” their furniture to be made locally, anywhere.

Sponsored | BIM and Information Technology | Aug 20, 2015

Part II - Will BIM Work as a Deliverable? A Legal Perspective on BIM

Having the right counsel on your team can be the difference between long drawn-out negotiations and breaking new ground to meet the owner’s needs.

Sponsored | Building Team | Aug 20, 2015

Understanding the values and aspirations of millennials

A recent LinkedIn workplace survey revealed that millennials (defined as individuals aged 18–24) are quite different from boomers (those aged 55–65)

BIM and Information Technology | Aug 17, 2015

Reimagined cursors can change digital imaging

A University of Montreal professor has developed a system that elevates 2D cursors for a 3D world.

Building Team | Aug 17, 2015

One female contractor gets vocal about urging women to consider construction as a career

Doreen DiPolito of Florida’s D-Mar General Contracting thinks opportunities abound in an industry struggling with worker shortages.

Sponsored | Building Team | Aug 11, 2015

How to improve project planning

A recent research project revealed that more than 75 percent of project owners have no consistent method for assessing project risks and setting budget contingencies. 

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