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
| Jan 24, 2012
Rockingham County Judicial Center receives USGBC Gold NC v.2.2
The Rockingham facility is the first judicial center in North Carolina to seek certification from the U.S. Green Building Council’s LEED Building rating system.
| Jan 19, 2012
LEED puts the 'Gold' in Riverside golden arches
McDonald's restaurant recognized for significant energy savings.
| Jan 19, 2012
Odebrecht and Braskem bring sustainable award to U.S. university students
The Odebrecht Award for sustainable development rewards future leaders in engineering and chemistry.
| Jan 19, 2012
BOKA Powell-designed facility at Texas A&M Bryan campus
The new facility provides programs for the Texas A&M Health Science Center, the Texas Brain and Spine Institute, Mary Crowley Cancer Research Centers, and Blinn College Allied Health programs.
| Jan 18, 2012
ABI positive for second straight month
All regions except for the West showing improved demand for design services.
| Jan 17, 2012
SOM Chicago wins competition to design China's Suzhou Center
The 75-level building is designed to accommodate a complex mixed-use program including office, service apartments, hotel and retail on a 37,000 sm site.
| Jan 17, 2012
FxFowle and CO Architects form joint venture
FxFowle and CO Architects creates a dynamic alliance built on a shared dedication to collaboration in process, innovation in programming, and excellence in design.
| Jan 17, 2012
Capital Engineering joins AECOM
With 160 employees based in Taipei and Kaohsiung, CEC specializes in environmental, water, hydraulic and land development engineering consulting services for clients in Taiwan's public and private sectors.
| Jan 17, 2012
SOM launches Los Angeles design studio
Expert team to join the firm's West Coast practice, focusing on innovative urban and environmentally sustainable design in Southern California
| Jan 16, 2012
2012 40 Under 40 applications due Friday, Jan. 20
Building Design+Construction's 40 Under 40 is open to AEC professionals from around the world who are under 40 years old, as of January 1, 2012.