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 | Aug 6, 2021

Construction industry adds 11,000 jobs in July

Nonresidential sector trails overall recovery.

Market Data | Aug 2, 2021

Nonresidential construction spending falls again in June

The fall was driven by a big drop in funding for highway and street construction and other public work.

Market Data | Jul 29, 2021

Outlook for construction spending improves with the upturn in the economy

The strongest design sector performers for the remainder of this year are expected to be health care facilities.

Market Data | Jul 29, 2021

Construction employment lags or matches pre-pandemic level in 101 metro areas despite housing boom

Eighty metro areas had lower construction employment in June 2021 than February 2020.

Market Data | Jul 28, 2021

Marriott has the largest construction pipeline of U.S. franchise companies in Q2‘21

472 new hotels with 59,034 rooms opened across the United States during the first half of 2021.

Market Data | Jul 27, 2021

New York leads the U.S. hotel construction pipeline at the close of Q2‘21

Many hotel owners, developers, and management groups have used the operational downtime, caused by COVID-19’s impact on operating performance, as an opportunity to upgrade and renovate their hotels and/or redefine their hotels with a brand conversion.

Market Data | Jul 26, 2021

U.S. construction pipeline continues along the road to recovery

During the first and second quarters of 2021, the U.S. opened 472 new hotels with 59,034 rooms.

Market Data | Jul 21, 2021

Architecture Billings Index robust growth continues

AIA’s Architecture Billings Index (ABI) score for June remained at an elevated level of 57.1.

Market Data | Jul 20, 2021

Multifamily proposal activity maintains sizzling pace in Q2

Condos hit record high as all multifamily properties benefit from recovery.

Market Data | Jul 19, 2021

Construction employment trails pre-pandemic level in 39 states

Supply chain challenges, rising materials prices undermine 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