Associated Builders and Contractors reported today that its Construction Backlog Indicator fell to 7.8 months in March, according to an ABC member survey conducted from March 22 to April 5, a decrease of 0.4 months from both the February 2021 and March 2020 readings.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased in March. All three indices remain above the threshold of 50, indicating expectations of growth over the next six months.
“There are two countervailing forces influencing backlog,” said Basu. “On the one hand, design work on new projects declined during most of the pandemic. Some of this is attributable to the need to socially distance, risk aversion and the jarring effects of the crisis on commercial real estate. The result has been fewer projects presently available for bid, which is consistent with declining backlog.
“On the other hand, the surprisingly strong economic recovery has brought projects that seemed dead back to life,” said Basu. “The boom in e-commerce and other tech segments has also produced greater levels of demand for construction of fulfillment and data centers. The overall result is that backlog is roughly where it was six months ago. Given that contractors remain confident regarding sales, employment and profit margins over the balance of the year, the expectation is that more projects will enter the design phase, bidding opportunities are set to rise and at some point backlog will reestablish an upward trajectory.”
Click here for a short video from ABC’s chief economist to see what the latest survey data mean for the construction industry.
Related Stories
Market Data | Aug 22, 2018
July architecture firm billings remain positive despite growth slowing
Architecture firms located in the South remain especially strong.
Market Data | Aug 15, 2018
National asking rents for office space rise again
The rise in rental rates marks the 21st consecutive quarterly increase.
Market Data | Aug 13, 2018
First Half 2018 commercial and multifamily construction starts show mixed performance across top metropolitan areas
Gains reported in five of the top ten markets.
Market Data | Aug 10, 2018
Construction material prices inch down in July
Nonresidential construction input prices increased fell 0.3% in July but are up 9.6% year over year.
Market Data | Aug 9, 2018
Projections reveal nonresidential construction spending to grow
AIA releases latest Consensus Construction Forecast.
Market Data | Aug 7, 2018
New supply's impact illustrated in Yardi Matrix national self storage report for July
The metro with the most units under construction and planned as a percent of existing inventory in mid-July was Nashville, Tenn.
Market Data | Aug 3, 2018
U.S. multifamily rents reach new heights in July
Favorable economic conditions produce a sunny summer for the apartment sector.
Market Data | Aug 2, 2018
Nonresidential construction spending dips in June
“The hope is that June’s construction spending setback is merely a statistical aberration,” said ABC Chief Economist Anirban Basu.
Market Data | Aug 1, 2018
U.S. hotel construction pipeline continues moderate growth year-over-year
The hotel construction pipeline has been growing moderately and incrementally each quarter.
Market Data | Jul 30, 2018
Nonresidential fixed investment surges in second quarter
Nonresidential fixed investment represented an especially important element of second quarter strength in the advance estimate.
