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](/sites/default/files/inline-images/ABC%20Construction%20Backlog%20Indicator%20%26%20Construction%20Confidence%20Index.jpg)
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
| Aug 11, 2010
Steel Joist Institute announces 2009 Design Awards
The Steel Joist Institute is now accepting entries for its 2009 Design Awards. The winning entries will be announced in November 2009 and the company with the winning project in each category will be awarded a $2,000 scholarship in its name to a school of its choice for an engineering student.
| Aug 11, 2010
Southern Pine Council releases certification survey results
Recent surveys conducted by the Southern Forest Products Association (SFPA) and Random Lengths assessed the use of forest certification programs in the wood products industry and uncovered interesting results, including the fact that approximately 61% do not use a certification system and that about 60% of southern pine producers receive regular requests for certified products.
| Aug 11, 2010
Duro-Last introduces new vinyl rib roofing system
Duro-Last Roofing Inc., is pleased to announce the introduction of the Duro-Last Vinyl Rib roofing system, part of the Duro-Last Designer Series of roofing products. The Vinyl Rib roofing system is ideal for commercial and residential applications where both the aesthetic appearance of architectural standing seam and the proven, watertight performance of a single-ply roofing system are desired.
| Aug 11, 2010
Gilbane, Manhattan Construction top BD+C's ranking of the nation's 50 largest K-12 school contractors
A ranking of the Top 50 K-12 School Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Diffenbaugh completes construction of Loma Linda University Highland Springs Medical Plaza
J.D. Diffenbaugh, Inc. has completed construction of the new Highland Springs Medical Center for California's Loma Linda University Medical Center that will significantly enhance the access to medical services for families in the Inland Empire. The project was developed by Lillibridge Healthcare Services, Inc., one of the nation’s largest private healthcare real estate firms.
| Aug 11, 2010
Permanent tribute to Daniel Burnham and his Plan of Chicago proposed for Grant Park Museum Campus
The first-place winner of a design competition for a public memorial celebrating Daniel Burnham's impact on Chicago will be announced at a news conference Wednesday, July 8, at 10am CDT. The proposed site for the memorial is on the Museum Campus just north of The Field Museum. The announcement comes after nearly two years of planning by Chicago's architecture, design and urban planning community about how to best honor the legacy of Burnham and the Plan of Chicago he co-wrote with Edward Bennett.
| Aug 11, 2010
International Living Building Institute established to advance 'living buildings'
The idea of a Living Building, a high-performance building that produces its own power and cleans and reuses all of its water, is gaining momentum around the world. In an effort to oversee the global development of Living Buildings, the International Living Building Institute (ILBI) has been established.
| Aug 11, 2010
Arup, SOM top BD+C's ranking of the country's largest mixed-use design firms
A ranking of the Top 75 Mixed-Use Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Architecture billings index takes turn for the worse
After showing signs of stabilization over the last three months, the Architecture Billings Index (ABI) plunged nearly five points in June. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the June ABI rating was 37.7, far lower than the 42.9 the previous month.