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 4, 2012
2012 Reconstruction Awards Gold Winner: Rice Fergus Miller Office & Studio, Bremerton, Wash.
Rice Fergus Miller bought a vacant and derelict Sears Auto and converted the 30,000 gsf space into the most energy-efficient commercial building in the Pacific Northwest on a construction budget of around $100/sf.
| Oct 4, 2012
2012 Reconstruction Award Platinum Winner: Building 1500, Naval Air Station Pensacola Pensacola, Fla.
The Building Team, led by local firms Caldwell Associates Architects and Greenhut Construction, had to tackle several difficult problems to make the historic building meet current Defense Department standards having to do with anti-terrorism, force protection, blast-proofing, and progressive collapse.
| Oct 4, 2012
2012 Reconstruction Awards Platinum Winner: City Hall, New York, N.Y.
New York's City Hall last received a major renovation nearly a century ago. Four years ago, a Building Team led by construction manager Hill International took on the monumental task of restoring City Hall for another couple of hundred years of active service.
| Oct 4, 2012
BD+C's 29th Annual Reconstruction Awards
Presenting 11 projects that represent the best efforts of distinguished Building Teams in historic preservation, adaptive reuse, and renovation and addition projects.
| Oct 4, 2012
Electronic power tool builds project transparency
As building projects have grown in scope and complexity, so, too, has the task of document management. A new online tool is helping Building Teams meet that demand.
| Oct 4, 2012
HMC Architects in service to the community
HMC employees give back to their communities through toy drives and fundraising efforts like CANstruction, which benefits local food banks.
| Oct 4, 2012
Career development, workplace environment programs key to retention at HMC Architects
Architecture firm take a multifaceted approach to professional development.
| Oct 4, 2012
Foundation tightens HMC Architects bond with local communities
Founded in 2009 with an initial endowment of $1.9 million, HMC’s nonprofit Designing Futures Foundation (DFF) has donated about $230,000 in its three years of existence, including $105,000 in scholarships to California students. The grants help promising high schoolers with an interest in architecture, design, engineering, education, or healthcare pay for expenses like test preparation services, computers, and college entrance exam fees and tuition. The scholarships can be extended for up to five years of college.
| Oct 4, 2012
Gilbane publishes Fall 2012 construction industry economic report
Report outlines fluctuation in construction spending; predicts continued movement toward recovery.
| Oct 3, 2012
Fifth public comment period now open for update to USGBC's LEED Green Building Program
LEED v4 drafts and the public comment tool are now available on the newly re-launched, re-envisioned USGBC.org website.