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
Wood chips to heat school district buildings
An alternative energy plant for the Hartford Central School District in Hartford, N.Y., will be a first for the state's public school systems. Designed by Albany, N.Y.-based CSArch Architecture/Construction Management, the $1.9 million plant will provide heat and hot water to the district's elementary and high school complex, as well as to an adjacent technical school.
| Aug 11, 2010
Healthcare construction weathers the recession
Healthcare construction spending grew at a compound rate of more than 10% for seven years through mid-2008, but has stalled since then. The stall, however, still represents better growth than almost any other construction market during the recession, which deepened as a result of the fall 2008 credit freeze.
| Aug 11, 2010
Embassy's dual façades add security and beauty
The British government's new 46,285-sf embassy building in Warsaw, Poland's diplomatic quarter houses the ambassador's offices, the consulate, and visa services on three floors. The $20 million Modernist design by London-based Tony Fretton Architects features a double façade—an inner concrete super structure and an outer curtain wall.
| Aug 11, 2010
Project's mixed materials downplay massing
Philadelphia-based KlingStubbins provided design services for the 120,000-sf Carnegie Center, which is part of the 103-acre mixed-use Carnegie Center West development in West Windsor Township, N.J. The four-story building features horizontal brick bands, ribbons of glass, aluminum accents, and metal end panels and curtain wall at all four corners to break up the building's massing.
| Aug 11, 2010
Firehouse converted to hip hot property
Sound the alarm! A 9,000-sf former firehouse is being converted into a new multipurpose space for ZUMIX, a nonprofit music and arts organization that's partnering on the project with Landmark Structures of Woburn, Mass., and the East Boston Community Development Corporation. The $2 million renovation of the 1920s structure, known as Engine Company 40 Firehouse, includes a complete gut job to ma...
| Aug 11, 2010
High-tech tower targets LEED Platinum
Construction is slated to begin on the new $38 million AI Tech Center in Hartford, Conn., in spring 2010. The Building Team, which includes Suffolk Construction Co., CBT Architects, and Jones Lang LaSalle, planned the high-tech 13-story, 259,000-sf tower to meet LEED Platinum certification. Green features include photovoltaic power, a fuel cell power plant, abundant natural lighting, and a roof...
| Aug 11, 2010
Dave Barista named chief editor of Professional Builder
David Barista has assumed the chief editor position at Professional Builder, a Reed Business Information (RBI) publication, with additional responsibility for Custom Builder, Housing Giants, and HousingZone. Barista joined RBI in 2000, shortly after graduating from Eastern Illinois University, as an editor with Building Design+Construction.
| Aug 11, 2010
And the world's tallest building is…
At more than 2,600 feet high, the Burj Dubai (right) can still lay claim to the title of world's tallest building—although like all other super-tall buildings, its exact height will have to be recalculated now that the Council on Tall Buildings and Urban Habitat (CTBUH) announced a change to its height criteria.
| Aug 11, 2010
Project is music to school's ears
Florida Gulf Coast University is building a $7.55 million Fine Arts Building on its campus near Ft. Myers, Fla. The 25,000-sf building—the first project in the school's plan for an entire music complex—will house the music program of the College of Arts and Sciences. The facility includes a 200-seat recital hall, rehearsal hall, music labs, studio rooms, and administration offices.
| Aug 11, 2010
East meets West in hospital design
The Los Angeles office of HMC Architects and the Chinese firm Shunde Architectural Design Institute won the commission to design the 2.15 million-sf First People's Hospital in the Shunde District of Foshan, China. The team's winning concept organizes a series of buildings around a dynamic, curved spine element to create an interior “eco-atrium” with outdoor green space and healing g...