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.”
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
D.C. gets sweeter with expanded green eatery
Greens Restaurant Group has expanded its popular salad and yogurt eatery, sweetgreen, to two neighborhoods in the Washington, D.C., area, Dupont Circle and Bethesda, Md. Designed by local architect CORE architecture + design, the experiential dining projects use salvaged hickory for the walls, wood recycled from the old bowling alleys for the tables and chairs, and sustainable paper/dye product...
| Aug 11, 2010
Nation's first multistory green industrial facility opens in Brooklyn
The $25 million Perry Avenue Building at Brooklyn Navy Yard is the nation's first multilevel green industrial facility and the first building in New York to incorporate building-mounted wind turbines. The wind turbines, along with rooftop solar panels, will provide electricity for the building's lobby and common areas.
| Aug 11, 2010
Manhattan's latest boutique hotel will be LEED Silver certified
New York-based developer Tribeca Associates has commissioned Brennan Beer Gorman Architects to design its latest mixed-use office and boutique hotel at 330 Hudson Street. Located in the downtown Hudson Square area of Manhattan, the LEED-Silver development will involve the redevelopment of a historic, eight-story warehouse building into 292,000 sf of office space, 15,000 sf of retail space, and ...
| Aug 11, 2010
Residence hall designed specifically for freshman
Hardin Construction Company's Austin, Texas, office is serving as GC for the $50 million freshman housing complex at the University of Houston. Designed by HADP Architecture, Austin, the seven-story, 300,000-sf facility will be located on the university's central campus and have 1,172 beds, residential advisor offices, a social lounge, a computer lab, multipurpose rooms, a fitness center, and a...
| Aug 11, 2010
News Briefs: GBCI begins testing for new LEED professional credentials... Architects rank durability over 'green' in product attributes... ABI falls slightly in April, but shows market improvement
News Briefs: GBCI begins testing for new LEED professional credentials... Architects rank durability over 'green' in product attributes... ABI falls slightly in April, but shows market improvement
| Aug 11, 2010
University of Florida's traditionally modern graduate building
The University of Florida's Hough Hall Graduate Studies Building was designed by Rowe Architects, Tampa, and Sasaki Associates, Boston, to blend with the school's traditional collegiate gothic architecture outside, but reflect a 21st-century education facility inside. Tallahassee-based Ajax Building Corporation is constructing the $19 million facility, which will have traditional exterior detai...
| Aug 11, 2010
Manhattan's Gouverneur Healthcare Services tops out renovation, expansion
One year after breaking ground, the Building Team for the renovation and expansion of the Gouverneur Healthcare Services facility on Manhattan's Lower East Side topped out the $180 million project. Designed by New York-based RMJM, the development involves a 316,000-sf renovation and 108,000-sf addition that will house a 295-bed nursing facility and five-story ambulatory care center.
| Aug 11, 2010
Las Vegas high school focuses on careers in justice, emergency response
McCarthy Building Cos., St. Louis, recently completed construction on the 130,700-sf Veterans Tribute Career & Technical Academy, a Las Vegas high school that focuses on service career pathways in 911 dispatch training, law enforcement, crime scene analysis, emergency medical training, and computer forensics.
| Aug 11, 2010
Decline expected as healthcare slows, but hospital work will remain steady
The once steady 10% growth rate in healthcare construction spending has slowed, but hasn't entirely stopped. Spending is currently 1.7% higher than the same time last year when construction materials costs were 8% higher. The 2.5% monthly jobsite spending decline since last fall is consistent with the decline in materials costs.
