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
| Dec 5, 2013
Exclusive BD+C survey shows reaction to Sandy Hook tragedy
More than 60% of AEC professionals surveyed by BD+C said their firms experienced heightened interest in security measures from school districts they worked with.
| Dec 4, 2013
First look: Dubai's winning bid for World Expo 2020 [slideshow]
Dubai has been chosen as the site of the 2020 World Expo. HOK led the design team that developed the master plan for the Expo, which is expected to draw more than 25 million visitors from October 2020 through April 2021.
| Dec 3, 2013
‘BIM for all’ platform pays off for contractor
Construction giant JE Dunn is saving millions in cost avoidances by implementing a custom, cloud-based BIM/VDC collaboration platform.
| Dec 3, 2013
Historic Daytona International Speedway undergoing $400 million facelift
The Daytona International Speedway is zooming ahead on the largest renovation in the Florida venue’s 54-year history. Improvements include five redesigned guest entrances, an extended grandstand with 101,000 new seats, and more than 60 new trackside suites for corporate entertaining.
| Dec 3, 2013
Creating a healthcare capital project plan: The truth behind the numbers
When setting up a capital project plan, it's one thing to have the data, but quite another to have the knowledge of the process.
| Dec 3, 2013
Architects urge government to reform design-build contracting process
Current federal contracting laws are discouraging talented architects from competing for federal contracts, depriving government and, by inference, taxpayers of the best design expertise available, according to AIA testimony presented today on Capitol Hill.
| Dec 3, 2013
Construction spending hits four-year peak after rare spike in public outlays
An unusual surge in public construction in October pushed total construction spending to its highest level since May 2009 despite a dip in both private residential and nonresidential activity.
| Nov 27, 2013
BIG's 'oil and vinegar' design wins competition for the Museum of the Human Body [slideshow]
The winning submission by Bjarke Ingels Group (BIG) and A+ Architecture mixes urban pavement and parkland in a flowing, organic plan, like oil and vinegar, explains Bjarke Ingels.
| Nov 27, 2013
Retail renaissance: What's next?
The retail construction category, long in the doldrums, is roaring back to life. Send us your comments and projects as we prepare coverage for this exciting sector.
| Nov 27, 2013
Pediatric hospitals improve care with flexible, age-sensitive design
Pediatric hospitals face many of the same concerns as their adult counterparts. Inpatient bed demand is declining, outpatient visits are soaring, and there is a higher level of focus on prevention and reduced readmissions.
