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.
ABCās 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.
āThe Federal Reserve began ratcheting up interest rates more than two years ago but one would not know it based on construction confidence and backlog,ā said ABC Chief Economist Anirban Basu. Ā āABC measurements reflect ongoing momentum in the nationās 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.
āTime will tell whether this optimism is justified,ā said Basu. āComing 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
| Jul 29, 2016
Top 45 Airport Terminal Construction and CM Firms
Hensel Phelps generatedĀ more than $660 million in revenue last year to earn the top spot onĀ BD+Cās annual ranking of the nationās largest airport terminal construction and CM firms. Ā
| Jul 27, 2016
Turner turns to design-build, P3, Lean practices, and engineering services
Design-build has accounted for a notable portion of Turnerās work over the last few years.
| Jul 27, 2016
CONSTRUCTION GIANTS: Economists forecast moderation for nonresidential projects
Construction spending is up this year and is expected to continue to increase through 2017. But,Ā economists identifiedĀ factors that could slow construction spending.
| Jul 27, 2016
Top 70 Construction Management Firms
Hill International, Jacobs, and JLLĀ head Building Design+Construction's 2016 ranking of the largest construction management and project management firms in the United States.Ā
| Jul 27, 2016
Top 115 Contractor Firms
Turner Construction, Whiting-Turner Contracting, Fluor, and Skanska top Building Design+Construction's 2016 ranking of the largest contractors in the United States.Ā
Sports and Recreational Facilities | Jul 20, 2016
San Diegoās waterfront redevelopment would go beyond a mere āprojectā
Its developers envision a thriving business, education, and entertainment district, highlighted by a huge observation tower and aquarium.
| Jul 19, 2016
2016 GIANTS 300 REPORT: Ranking the nation's largest architecture, engineering, and construction firms
Now in its 40th year, BD+Cās annual Giants 300 report ranks AEC firms by discipline and across more than 20 building sectors and specialty services.
Sports and Recreational Facilities | Jul 18, 2016
Turner and AECOM will build the Los Angeles Ramsā new multi-billion dollar stadium project
The 70,000-seat stadium will be ready by the 2019 NFL season. The surrounding mixed-use development includes space for retail, hotels, and public parks.
Contractors | Jul 15, 2016
Trade unions, contractors call for maximum penalty in construction worker death case
āSick and tiredā of lawbreaking contractors defining public perception. Ā
| Jul 12, 2016
Grant Gagnier named COO of Suffolk Construction for New York region
Suffolk Construction Company, Inc., one of the largest privately held construction companies in the U.S., has named industry veteran and Suffolk Construction executive Grant Gagnier as its new Chief Operating Officer of the New York Region. Suffolk recently opened an office in Manhattan at One Pennsylvania Plaza.