Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.2 months in March from 8.1 months in February, according to an ABC member survey conducted March 20 to April 3. The reading is down 0.5 months from March 2023.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for March. View the full Construction Backlog Indicator and Construction Confidence Index data series.
Backlog is down over the past year for every region except for the Middle States, which now has the second largest backlog of any region. The South continues to have the largest backlog despite a large decline over the past year.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased in March. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“Given headwinds such as high borrowing costs, emerging supply chain issues, project financing challenges and labor shortages, the persistent optimism among nonresidential construction contractors is astonishing,” said ABC Chief Economist Anirban Basu. “Last month, contractors reported rising backlog and greater conviction regarding likely growth in sales, employment and profit margins.
“While certain readings are below year-ago levels, there was broad-based improvement in March,” said Basu. “For instance, in the category of profit margins, 32% of those surveyed in February expected improvement over the next six months. That share rose to nearly 34% in March, with only 24% hinting at near-term margin compression. That indicates that though costs of delivering construction services continue to rise, contractors collectively enjoy enough pricing power to support stable to rising margins. If interest rates begin to decline during the summer as is widely expected, confidence is likely to climb further.”
Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month's work under contract based on the latest financials available, while CCI measures contractors' outlook for the next six months. View the methodology for both indicators.
Related Stories
Giants 400 | Aug 25, 2022
Top 100 Apartment and Condominium Contractors for 2022
Clark Group, Suffolk Construction, AECOM, and Lendlease top the ranking of the nation's largest apartment and condominium contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
University Buildings | Aug 25, 2022
Higher education, striving for ‘normal’ again, puts student needs at the center of project planning
Sustainability and design flexibility are what higher education clients are seeking consistently, according to the dozen AEC Giants contacted for this article. “University campuses across North America are commissioning new construction projects designed to make existing buildings and energy systems more sustainable, and are building new flexible learning space that bridge the gap between remote and in-person learning,” say Patrick McCafferty, Arup’s Education Business Leader–Americas East region, and Matt Humphries, Education Business Leader in Canada region.
| Aug 25, 2022
New York City’s congestion pricing aims to reduce traffic, cut carbon
Officials recently released an environmental assessment that analyzes seven different possible pricing schemes for New York City’s congestion pricing program.
Sponsored | BD+C University Course | Aug 24, 2022
Solutions for cladding performance and supply issues
This course covers design considerations and cladding assembly choices for creating high-performance building envelopes — a crucial element in healthy, energy-efficient buildings.
| Aug 24, 2022
California’s investment in ‘community schools’ could transform K-12 education
California has allocated $4.1-billion to develop ‘community schools’ that have the potential to transform K-12 education.
| Aug 24, 2022
Architecture Billings Index slows but remains healthy
For the eighteenth consecutive month architecture firms reported increasing demand for design services in July, according to a new report today from The American Institute of Architects (AIA).
| Aug 23, 2022
New Mass. climate and energy law allows local bans on fossil fuel-powered appliances
A sweeping Massachusetts climate and energy bill recently signed into law by Republican governor Charlie Baker allows local bans on fossil fuel-powered appliances.
Giants 400 | Aug 22, 2022
Top 70 Science + Technology Facility Contractors + CM Firms 2022
Whiting-Turner, Hensel Phelps, DPR Construction, and Skanska USA top the rankings of the nation's largest science and technology (S+T) facility contractors and construction management (CM) firms, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 22, 2022
Top 45 Laboratory Facility Contractors and Construction Management Firms for 2022
Whiting-Turner, Hensel Phelps, McCarthy, and STO Building Group top the ranking of the nation's largest science and technology (S+T) laboratory facility contractors and construction management (CM) firms, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 22, 2022
Top 90 University Contractors and Construction Management Firms for 2022
Turner Construction, Whiting-Turner Contracting, PCL Construction Enterprises, and DPR Construction lead the ranking of the nation's largest university sector contractors and construction management (CM) firms, as reported in Building Design+Construction's 2022 Giants 400 Report.
