Associated Builders and Contractors reported that its Construction Backlog Indicator declined to 8.1 months in February, according to an ABC member survey conducted Feb. 20 to March 5. The reading is down 1.1 months from February 2023.
Backlog fell for every size of contractor except for those with under $30 million in annual revenues in February. Over the past year, however, the largest contractors—those with greater than $50 million in revenues—have experienced the greatest decline in backlog.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels also decreased in February. However, all three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“Backlog is declining and confidence began to fade modestly in February,” said ABC Chief Economist Anirban Basu. “While it is far too early to predict an industrywide downturn given that confidence readings continue to signal growth along sales, employment and profit margin dimensions, it appears that a rising tide of project cancellations and postponements has begun to make its mark.
“With excess inflation remaining stubbornly durable, at least according to certain measures, interest rates are poised to remain higher for longer,” said Basu. “That gives higher borrowing costs more time to upset the economic momentum that has so surprised economists over the past two years and has provided support for various nonresidential construction activities. With so much federal money still entering the economy, there will continue to be support for growth in certain construction segments, including public works and manufacturing-related megaprojects, but industry weakness is more apparent in segments that rely more purely on private financing.”
Related Stories
| Oct 21, 2014
Passive House concept gains momentum in apartment design
Passive House, an ultra-efficient building standard that originated in Germany, has been used for single-family homes since its inception in 1990. Only recently has the concept made its way into the U.S. commercial buildings market.
| Oct 21, 2014
Hartford Hospital plans $150 million expansion for Bone and Joint Institute
The bright-white structures will feature a curvilinear form, mimicking bones and ligament.
| Oct 21, 2014
Norman Foster, Zaha Hadid release plans for resorts in Nanjing and Wuhan, China
Jumeirah Group, a hotel group forming a part of investment group Dubai Holding, has chosen Zaha Hadid and Norman Foster to design two of three of its proposed resorts in Nanjing, Wuhan, and Haikou.
| Oct 21, 2014
Inside LEED v4: The view from the MEP engineering seats
Much of the spirited discussion around LEED v4 has been centered on the Materials & Resources Credit. At least one voice in the wilderness is shouting for greater attention to another huge change in LEED: the shift to ASHRAE 90.1-2010 as the new reference standard for Energy & Atmosphere prerequisites and credits.
| Oct 21, 2014
Perkins Eastman white paper explores state of the senior living industry in the Carolinas
Among the experts interviewed for the white paper, there was a general consensus that the model for continuing-care retirement communities is changing, driven by both the changing consumers and more prevalent global interest on the effects of aging.
| Oct 20, 2014
Singapore Sports Hub claims world's largest free-spanning dome
The retractable roof, which measures a whopping 1,017-feet across, is made from translucent ETFE plastic panels supported with metal rigging that arches over the main pitch.
| Oct 20, 2014
UK's best new building: Everyman Theatre wins RIBA Stirling Prize 2014
The new Everyman Theatre in Liverpool by Haworth Tompkins has won the coveted RIBA Stirling Prize 2014 for the best building of the year. Now in its 19th year, the RIBA Stirling Prize is the UK’s most prestigious architecture prize.
Sponsored | | Oct 19, 2014
The Exploration Tower in Port Canaveral dazzles visitors
With a mission to provide the experience of a lifetime, the Exploration Tower at Port Canaveral, Fla., is designed to inspire, as visitors learn about the history and nature of the port and beyond. SPONSORED CONTENT
| Oct 19, 2014
White House Visitor Center reopens in Washington, D.C.
Designed by SmithGroupJJR and Gallagher & Associates, renovated center shows public its unique role as office, stage, museum, park, and home.
| Oct 16, 2014
Must see: Illustrator interprets iconic windows concocted by renowned architects
Graphic designer Federico Babina has made a name for himself when it comes to art inspired by architecture, or more accurately, art inspired by architecture that's inspired by other forms of art.
