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
| Apr 13, 2011
Professor Edward Glaeser, PhD, on how cities are mankind’s greatest invention
Edward Glaeser, PhD, the Fred and Eleanor Glimp Professor of Economics at Harvard University and director of the Taubman Center for State and Local Government and the Rappaport Institute for Greater Boston, as well as the author of Triumph of the City: How Our Greatest Invention Makes Us Richer, Smarter, Healthier, and Happier, on how cities are mankind’s greatest invention.
| Apr 13, 2011
Southern Illinois park pavilion earns LEED Platinum
Erin’s Pavilion, a welcome and visitors center at the 80-acre Edwin Watts Southwind Park in Springfield, Ill., earned LEED Platinum. The new 16,000-sf facility, a joint project between local firm Walton and Associates Architects and the sustainability consulting firm Vertegy, based in St. Louis, serves as a community center and special needs education center, and is named for Erin Elzea, who struggled with disabilities during her life.
| Apr 13, 2011
Virginia hospital’s prescription for green construction: LEED Gold
Rockingham Memorial Hospital in Harrisonburg, Va., is the commonwealth’s first inpatient healthcare facility to earn LEED Gold. The 630,000-sf facility was designed by Earl Swensson Associates, with commissioning consultant SSRCx, both of Nashville.
| Apr 13, 2011
Office interaction was the critical element to Boston buildout
Margulies Perruzzi Architects, Boston, designed the new 11,460-sf offices for consultant Interaction Associates and its nonprofit sister organization, The Interaction Institute for Social Change, inside an old warehouse near Boston’s Seaport Center.
| Apr 13, 2011
Expanded Museum of the Moving Image provides a treat for the eyes
The expansion and renovation of the Museum of the Moving Image in the Astoria section of Queens, N.Y., involved a complete redesign of its first floor and the construction of a three-story 47,000-sf addition.
| Apr 13, 2011
Duke University parking garage driven to LEED certification
People parking their cars inside the new Research Drive garage at Duke University are making history—they’re utilizing the country’s first freestanding LEED-certified parking structure.
| Apr 13, 2011
Red Bull Canada HQ a mix of fluid spaces and high-energy design
The Toronto architecture firm Johnson Chou likes to put a twist on its pared-down interiors, and its work on the headquarters for Red Bull Canada is no exception. The energy drink maker occupies 12,300 sf on the top two floors of a three-story industrial building in Toronto, and the design strategy for its space called for leaving the base building virtually untouched while attention was turned to the interior architecture.
| Apr 13, 2011
Former department store gets new lease on life as MaineHealth HQ
The long-vacant Sears Roebuck building in Portland, Maine, was redeveloped into the corporate headquarters for MaineHealth. Consigli Construction and local firm Harriman Architects + Engineers handled the 14-month fast-track project, transforming the 89,000-sf, four-story facility for just $100/sf.
| Apr 12, 2011
Rutgers students offered choice of food and dining facilities
The Livingston Dining Commons at Rutgers University’s Livingston Campus in New Brunswick, N.J., was designed by Biber Partnership, Summit, N.J., to offer three different dining rooms that connect to a central servery.
| Apr 12, 2011
Retail complex enjoys prime Abu Dhabi location
The Galleria at Sowwah Square in Abu Dhabi will be built in a prime location within Sowwah Island that also includes a five-star Four Seasons Hotel, the healthcare facility Cleveland Clinic Abu Dhabi, and nearly two million sf of Class A office space.
