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 | Sep 2, 2020

Coronavirus has caused significant construction project delays and cancellations

Yet demand for skilled labor is high, new survey finds.

Market Data | Sep 2, 2020

5 must reads for the AEC industry today: September 2, 2020

Precast concrete tower honors United AIrlines Flight 93 victims and public and private nonresidential construction spending slumps.

Market Data | Sep 2, 2020

Public and private nonresidential construction spending slumps in July

Industry employment declines from July 2019 in two-thirds of metros.

Market Data | Aug 31, 2020

5 must reads for the AEC industry today: August 31, 2020

The world's first LEED Platinum integrated campus and reopening campus performance arts centers.

Market Data | Aug 21, 2020

5 must reads for the AEC industry today: August 21, 2020

Student housing in the COVID-19 era and wariness of elevators may stymie office reopening.

Market Data | Aug 20, 2020

6 must reads for the AEC industry today: August 20, 2020

Japan takes on the public restroom and a look at the evolution of retail.

Market Data | Aug 19, 2020

6 must reads for the AEC industry today: August 19, 2020

July architectural billings remained stalled and Florida becomes third state to adopt concrete repair code.

Market Data | Aug 18, 2020

July architectural billings remained stalled

Clients showed reluctance to sign contracts for new design projects during July.

Market Data | Aug 18, 2020

Nonresidential construction industry won’t start growing again until next year’s third quarter

But labor and materials costs are already coming down, according to latest JLL report.

Market Data | Aug 18, 2020

6 must reads for the AEC industry today: August 18, 2020

The world's first AI-driven facade system and LA's Greek Theatre restoriation completes.

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