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
| May 17, 2011
Sustainability tops the syllabus at net-zero energy school in Texas
Texas-based firm Corgan designed the 152,200-sf Lady Bird Johnson Middle School in Irving, Texas, with the goal of creating the largest net-zero educational facility in the nation, and the first in the state. The facility is expected to use 50% less energy than a standard school.
| May 17, 2011
Gilbane partners with Steel Orca on ultra-green data center
Gilbane, along with Crabtree, Rohrbaugh & Associates, has been selected to partner with Steel Orca to design and build a 300,000-sf data center in Bucks County, Pa., that will be powered entirely through renewable energy sources--gas, solar, fuel cells, wind and geo-thermal. Completion is scheduled for 2013.
| May 17, 2011
Should Washington, D.C., allow taller buildings?
Suggestions are being made that Washington revise its restrictions on building heights. Architect Roger Lewis, who raised the topic in the Washington Post a few weeks ago, argues for a modest relaxation of the height limits, and thinks that concerns about ruining the city’s aesthetics are unfounded.
| May 17, 2011
The New Orleans master plan
At an afternoon panel during last week's AIA National Conference in New Orleans, Goody Clancy Principal David Dixon and Manning Principal W. Raymond Manning shared their experiences creating the New Orleans Master Plan, a document that sets a new course for the city, from land use and transportation planning to environmental protection.
| May 10, 2011
AISC honors top steel industry professionals
Roberto Leon, William Segui, Atorod Azizinamini, David Platten, Reidar Bjorhovde, Karl Frank, David I. Ruby, and Jon Magnusson are honored by the American Institute of Steel Construction (AISC) for their great contributions to the advancement of the structural steel design and construction industry. The award recipients will be recognized on May 11 at the 2011 NASCC: The Steel Conference in Pittsburgh.
| May 6, 2011
Charles Perry Construction and PPI Construction Management merge, operate as Charles Perry Partners, Inc.
Longtime contracting affiliates Charles Perry Construction, Inc. (CPC) and PPI Construction Management, Inc. (PPI) have joined forces as Charles Perry Partners, Inc. (CPPI) to become the 4th largest Florida-based general contracting and construction management firm with revenues of $202 million, based on ENR Southeast magazine’s latest survey published May 2010.
| May 2, 2011
URS acquires Apptis Holdings, a federal IT service provider
SAN FRANCISCO, CA and CHANTILLY, VA– April 28, 2011 – URS Corporation and Apptis Holdings, Inc., a leading provider of information technology and communications services to the federal government, announced that they have signed a definitive agreement under which URS will acquire Apptis.
| Apr 20, 2011
Marketing firm Funtion: to host “Construct. Build. Evolve.”
Function:, an integrated marketing agency that specializes in reaching the architecture, building and design community, is hosting an interactive art event, “Construct. Build. Evolve.” in Atlanta’s Piedmont Park on Thursday April 21, 2011 at 11:00AM EDT. During the event attendees will be asked to answer the question, “how would you build the future?” to rouse dialogue and discover fresh ideas for the future of the built environment.
| Apr 14, 2011
How AEC Professionals Choose Windows and Doors
Window and door systems need to perform. Respondents to our annual window and door survey overwhelmingly reported that performance, weather resistance, durability, and quality were key reasons a particular window or door was specified.
| Apr 13, 2011
National Roofing Contractors Association revises R-value of polyisocyanurate (ISO) insulation
NRCA has updated their R-value recommendation for polyisocyanurate roof insulation with the publication of the 2011 The NRCA Roofing Manual: Membrane Roof Systems.
