Associated Builders and Contractors reported that its Construction Backlog Indicator declined to 8.4 months in January, according to an ABC member survey conducted from Jan. 22 to Feb. 4. The reading is down 0.6 months from January 2023.
Backlog increased to 10.9 months in the heavy industrial category, the highest reading on record for that category, and is 2.5 months higher than in January 2023. Backlog is down on a year-over-year basis in the commercial/institutional and infrastructure categories.
ABC’s Construction Confidence Index readings for sales and staffing levels increased in January, while the reading for profit margins declined. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“As predicted, performance in the nonresidential construction sector is becoming more disparate across segments,” said ABC Chief Economist Anirban Basu. “For much of the pandemic recovery period, contractors in virtually all segments were indicating stable to rising backlog. That remains the case for contractors most exposed to the nation’s industrial production. Reshoring and near-shoring continue to drive construction spending.
“In other categories, however, including those most interest rate-sensitive, activity appears to be slowing,” said Basu. “Developer financing has become both more expensive and more difficult to obtain over roughly the past year, in part because of rising office vacancy in many markets. That helps to explain declining backlog in the commercial category. The decline in infrastructure-related backlog may be due only to seasonality, however. There is every reason to believe that contractors specializing in public works will have a very busy year.”
Related Stories
Architects | Mar 25, 2021
The Weekly Show, March 25, 2021: The Just Label for AEC firms, and Perkins Eastman's Well-Platinum design studio
This week on The Weekly show, BD+C editors speak with AEC industry leaders about the Just Label from the International Living Future Institute, and the features and amenities at Perkins Eastman's Well Platinum-certified design studio.
Contractors | Mar 16, 2021
Autodesk U.S. Construction Outlook 2021 report finds commercial bidding activity has surpassed pre-pandemic levels
Despite forecasted drop in non-residential spending for 2021, real-time bidding data from BuildingConnected suggests short-term relief is en route as delayed or rescheduled projects come back online.
Coronavirus | Mar 11, 2021
The Weekly show, March 11, 2021: 5 building products for COVID-related conditions, and AI for MEP design
This week on The Weekly show, BD+C editors speak with AEC industry leaders about building products and systems that support COVID-related conditions, and an AI tool that automates the design of MEP systems.
Laboratories | Mar 10, 2021
8 tips for converting office space to life sciences labs
Creating a successful life sciences facility within the shell of a former office building can be much like that old “square peg round hole” paradigm. Two experts offer important advice.
Contractors | Mar 10, 2021
AGC: House votes in favor of idling workers, stripping their privacy and denying them the opportunity to establish businesses
Democrats' vote in favor of the PRO Act will hurt workers and undermine the economic recovery, top construction industry official says.
AEC Tech | Mar 4, 2021
The Weekly show, March 4, 2021: Bringing AI to the masses, and Central Station Memphis hotel
This week on The Weekly show, BD+C editors speak with AEC industry leaders about the award-winning Central Station Memphis hotel reconstruction project, and how Autodesk aims to bring generative design and AI tools to the AEC masses.
Contractors | Mar 3, 2021
ABC launches construction Technology Marketplace to grow contractor members’ innovative initiatives
Consisting of 14 companies, the Tech Marketplace will be the premier source for ABC members to find technological construction solutions.
Market Data | Feb 24, 2021
2021 won’t be a growth year for construction spending, says latest JLL forecast
Predicts second-half improvement toward normalization next year.
Contractors | Feb 19, 2021
New immigration bill protects the legal status of more than 100,000 people in Dreamers and TPS programs who work in construction
Offering undocumented immigrants a path to legal status will put an end to unfair competition and labor exploitation, but bill fails to create a construction worker visa program, has other flaws.