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

Market Data | May 29, 2018

America’s fastest-growing cities: San Antonio, Phoenix lead population growth

San Antonio added 24,208 people between July 2016 and July 2017, according to U.S. Census Bureau data.

Market Data | May 25, 2018

Construction group uses mobile technology to make highway work zones safer

Mobile advertising campaign urges drivers who routinely pass through certain work zones to slow down and be alert as new data shows motorists are more likely to be injured than construction workers.

Market Data | May 23, 2018

Architecture firm billings strengthen in April

Firms report solid growth for seven straight months.

Market Data | May 18, 2018

Construction employment rises in 38 states and D.C. from April 2017 to April 2018

California & West Virginia have biggest annual job gains, North Dakota has largest decline; California & Louisiana have largest monthly pickup, Indiana & North Dakota lead monthly drops.

High-rise Construction | May 18, 2018

The 100 tallest buildings ever conventionally demolished

The list comes from a recent CTBUH study.

Resiliency | May 17, 2018

Architects brief lawmakers and policy-makers on disaster recovery as hurricane season approaches

Urge senate passage of disaster recovery reform act; Relationship-building with local communities.

Market Data | May 17, 2018

These 25 cities have the highest urban infill development potential

The results stem from a COMMERCIALCafé study.

Market Data | May 10, 2018

Construction costs surge in April as new tariffs and other trade measures lead to significant increases in materials prices

Association officials warn that the new tariffs and resulting price spikes have the potential to undermine benefits of tax and regulatory reform, urge administration to reconsider.

Market Data | May 7, 2018

Construction employers add 17,000 jobs in April and 257,000 for the year

Unemployment rate for construction increases slightly compared to year earlier as higher pay levels appears to be attracting people with recent construction experience back into the workforce.

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