Associated Builders and Contractors reported that its Construction Backlog Indicator increased to 8.4 months in April, according to an ABC member survey conducted April 22 to May 6. The reading is down 0.5 months from April 2023, but expanded 0.2 months from the prior month.
Backlog declined on a monthly basis for the largest and smallest contractors by revenue and grew for those with $30-$50 million and $50-$100 million in annual revenues. On an annual basis, only contractors with $30-$50 million in annual revenues have experienced an increase in backlog.
ABC’s Construction Confidence Index readings for sales and profit margins fell slightly in April, while the reading for staffing levels improved. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“The Federal Reserve began ratcheting up interest rates more than two years ago but one would not know it based on construction confidence and backlog,” said ABC Chief Economist Anirban Basu. “ABC measurements reflect ongoing momentum in the nation’s nonresidential construction sector. While there are occasional hints of softness in certain segments and over certain periods, the average contractor continues to report solid backlog and a belief that sales, employment and profit margins will expand over the next six months.
“Time will tell whether this optimism is justified,” said Basu. “Coming into the year, many expected that interest rates would fall markedly in 2024. Given stubbornly elevated inflation, that will not occur. Project financing costs are poised to remain higher for longer. Project cancellations and postponements have been on the rise. Moreover, a new set of supply chain issues has emerged, driving up materials costs and prospectively weakening industry margins. Workers also are becoming more expensive, in part because the construction wage premium has shrunk over the past several years due to rapidly rising compensation levels in competing segments like logistics and retail. The implication is that construction compensation levels will need to rise for the industry to be able to staff up more fully."
Related Stories
| Aug 30, 2016
CONVENTION CENTER GIANTS: A ranking of the nation's top convention center sector design and construction firms
Gensler, LMN Architects, AECOM, Turner Construction Co., and WSP | Parsons Brinckerhoff top Building Design+Construction’s annual ranking of the nation’s largest convention center sector AEC firms, as reported in the 2016 Giants 300 Report.
BIM and Information Technology | Aug 30, 2016
BIM GIANTS: A ranking of the nation's top BIM design and construction firms
HOK, Perkins+Will, Turner Construction Co., The Whiting-Turner Contracting Co., Jacobs, and Thornton Tomasetti top Building Design+Construction’s annual ranking of the nation’s largest BIM AEC firms, as reported in the 2016 Giants 300 Report.
Great Solutions | Aug 23, 2016
11 great solutions for the commercial construction market
A roll-up emergency department, next-gen telemedicine center, and biophilic cooling pods are among the AEC industry’s clever ideas and novel innovations for 2016.
| Aug 19, 2016
RECONSTRUCTION GIANTS: Facelifts give buildings new identities, even as they keep a few wrinkles
Reconstruction is always a balancing act between the client’s pro forma and what the building needs to be vibrant again.
| Aug 19, 2016
Top 110 Reconstruction Construction Firms
Gilbane Building Co., Turner Construction Co., and The Whiting-Turner Contracting Co. top Building Design+Construction’s annual ranking of the nation’s largest reconstruction sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Aug 18, 2016
LOCAL GOVERNMENT GIANTS: A ranking of the nation’s top design and construction firms in local sector work
HOK, Stantec, Turner Construction Co.,Clark Group, AECOM and STV top Building Design+Construction’s annual rankings of the nation’s largest local government sector AEC firms, as reported in the 2016 Giants 300 Report.
| Aug 18, 2016
STATE GOVERNMENT GIANTS: A ranking of the nation’s top design and construction firms in state sector work
CannonDesign, Stantec, Turner Construction Co.,Mortensen Construction, WSP | Parsons Brinckerhoff and AECOM top Building Design+Construction’s annual rankings of the nation’s largest state government sector AEC firms, as reported in the 2016 Giants 300 Report.
Hotel Facilities | Aug 17, 2016
First of its kind tri-branded Marriott hotel under construction in downtown Nashville
The hotel will combine the AC Hotels, Residence Inn, and SpringHill Suites brands.
| Aug 15, 2016
SPORTS FACILITY GIANTS: New and renovated college sports venues - designed to serve students and the community
Schools are renovating existing structures or building new sports facilities that can serve the student body and surrounding community.
| Aug 15, 2016
Top 60 Sports Facility Construction Firms
Mortenson Construction, AECOM, and Turner Construction Co. top Building Design+Construction’s annual ranking of the nation’s largest sports facility sector construction and construction management firms, as reported in the 2016 Giants 300 Report.