Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.3 months in May, according to an ABC member survey conducted May 20 to June 4. The reading is down 0.6 months from May 2023.
Backlog declined on a monthly basis for every company size except those contractors with greater than $100 million in annual revenues. On an annual basis, backlog is down for contractors of all sizes.
ABC’s Construction Confidence Index readings for profit margins and staffing levels fell slightly in May, while the reading for sales improved. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“Over a year has passed since the Federal Reserve raised the target range of the federal funds rate above 5%," said ABC Chief Economist Anirban Basu. "Despite widespread expectations that rates will remain elevated through at least the end of the year, contractors remain confident about the future, with a majority of contractors expecting their sales and staffing levels to expand over the next six months.
“Although backlog has been lower in 2024 than it was during 2023, it has also been stable,” said Basu. “While significant spending activity in manufacturing and infrastructure-related segments has kept contractors busy, input cost escalation has reemerged in recent months. As a result, contractor confidence regarding profit margins has fallen to the lowest level since November 2023.”
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.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for May. View the full Construction Backlog Indicator and Construction Confidence Index data series.
Related Stories
| Jan 19, 2011
Biomedical research center in Texas to foster scientific collaboration
The new Health and Biomedical Sciences Center at the University of Houston will facilitate interaction between scientists in a 167,000-sf, six-story research facility. The center will bring together researchers from many of the school’s departments to collaborate on interdisciplinary projects. The facility also will feature an ambulatory surgery center for the College of Optometry, the first of its kind for an optometry school. Boston-based firms Shepley Bulfinch and Bailey Architects designed the project.
| Jan 19, 2011
San Diego casino renovations upgrade gaming and entertainment
The Sycuan Casino in San Diego will get an update with a $27 million, 245,000-sf renovation. Hnedak Bobo Group, Memphis, Tenn., and Cleo Design, Las Vegas, drew design inspiration from the historic culture of the Sycuan tribe and the desert landscape, creating a more open space with better circulation. Renovation highlights include a new “waterless” water entry feature and new sports bar and grill, plus updates to gaming, poker, off-track-betting, retail, and bingo areas. The local office of San Francisco-based Swinerton Builders will provide construction services.
| Jan 19, 2011
Extended stay hotel aims to provide comfort of home
Housing development company Campus Apartments broke ground on a new extended stay hotel that will serve the medical and academic facilities in Philadelphia’s University City, including the University of Pennsylvania and the Children’s Hospital of Philadelphia. The 11,000-sf hotel will operate under Hilton’s Homewood Suites brand, with 136 suites with full kitchens and dining and work areas. A part of the city’s EnergyWorks loan program, the project aims for LEED with a green roof, low-flow fixtures, and onsite stormwater management. Local firms Alesker & Dundon Architects and GC L.F. Driscoll Co. complete the Building Team.
| Jan 19, 2011
New Fort Hood hospital will replace aging medical center
The Army Corps of Engineers selected London-based Balfour Beatty and St. Louis-based McCarthy to provide design-build services for the Fort Hood Replacement Hospital in Texas, a $503 million, 944,000-sf complex partially funded by the American Recovery and Reinvestment Act. The firm plans to use BIM for the project, which will include outpatient clinics, an ambulance garage, a central utility plant, and three parking structures. Texas firms HKS Architects and Wingler & Sharp will participate as design partners. The project seeks LEED Gold.
| Jan 19, 2011
Museum design integrates Greek history and architecture
Construction is under way in Chicago on the National Hellenic Museum, the nation’s first museum devoted to Greek history and culture. RTKL designed the 40,000-sf limestone and glass building to include such historic references as the covered walkway of classical architecture and the natural wood accents of Byzantine monasteries. The museum will include a research library and oral history center, plus a 3,600-sf rooftop terrace featuring three gardens. The project seeks LEED Silver.
| Jan 19, 2011
Large-Scale Concrete Reconstruction Solid Thinking
Driven by both current economic conditions and sustainable building trends, Building Teams are looking more and more to retrofits and reconstruction as the most viable alternative to new construction. In that context, large-scale concrete restoration projects are playing an important role within this growing specialty.
| Jan 10, 2011
Michael J. Alter, president of The Alter Group: ‘There’s a significant pent-up demand for projects’
Michael J. Alter, president of The Alter Group, a national corporate real estate development firm headquartered in Skokie, Ill., on the growth of urban centers, project financing, and what clients are saying about sustainability.
| Jan 7, 2011
BIM on Target
By using BIM for the design of its new San Clemente, Calif., store, big-box retailer Target has been able to model the entire structural steel package, including joists, in 3D, chopping the timeline for shop drawings from as much as 10 weeks down to an ‘unheard of’ three-and-a-half weeks.
| Jan 7, 2011
How Building Teams Choose Roofing Systems
A roofing survey emailed to a representative sample of BD+C’s subscriber list revealed such key findings as: Respondents named metal (56%) and EPDM (50%) as the roofing systems they (or their firms) employed most in projects. Also, new construction and retrofits were fairly evenly split among respondents’ roofing-related projects over the last couple of years.
