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 | Jun 22, 2018

Multifamily market remains healthy – Can it be sustained?

New report says strong economic fundamentals outweigh headwinds.

Market Data | Jun 21, 2018

Architecture firm billings strengthen in May

Architecture Billings Index enters eighth straight month of solid growth.

Market Data | Jun 20, 2018

7% year-over-year growth in the global construction pipeline

There are 5,952 projects/1,115,288 rooms under construction, up 8% by projects YOY. 

Market Data | Jun 19, 2018

ABC’s Construction Backlog Indicator remains elevated in first quarter of 2018

The CBI shows highlights by region, industry, and company size.

Market Data | Jun 19, 2018

America’s housing market still falls short of providing affordable shelter to many

The latest report from the Joint Center for Housing Studies laments the paucity of subsidies to relieve cost burdens of ownership and renting.

Market Data | Jun 18, 2018

AI is the path to maximum profitability for retail and FMCG firms

Leading retailers including Amazon, Alibaba, Lowe’s and Tesco are developing their own AI solutions for automation, analytics and robotics use cases. 

Market Data | Jun 12, 2018

Yardi Matrix report details industrial sector's strength

E-commerce and biopharmaceutical companies seeking space stoke record performances across key indicators.

Market Data | Jun 8, 2018

Dodge Momentum Index inches up in May

May’s gain was the result of a 4.7% increase by the commercial component of the Momentum Index.

Market Data | Jun 4, 2018

Nonresidential construction remains unchanged in April

Private sector spending increased 0.8% on a monthly basis and is up 5.3% from a year ago.

Market Data | May 30, 2018

Construction employment increases in 256 metro areas between April 2017 & 2018

Dallas-Plano-Irving and Midland, Texas experience largest year-over-year gains; St. Louis, Mo.-Ill. and Bloomington, Ill. have biggest annual declines in construction employment amid continuing demand.

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