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
| Aug 15, 2016
MILITARY GIANTS: Cross-laminated timber construction gets a salute from the Army
By privatizing the construction, renovation, operation, maintenance, and ownership of its hotels the Army expects to cut a 20-year timetable for repairs and replacement of its lodging down to eight years.
| Aug 12, 2016
SCIENCE + TECHNOLOGY GIANTS: Incubator model is reimagining research and lab design
Interdisciplinary interaction is a common theme among many new science and technology offices.
| Aug 12, 2016
Top 30 Science + Technology Construction Firms
Skanska USA, Suffolk Construction Co., and The Whiting-Turner Contracting Co. top Building Design+Construction’s annual ranking of the nation’s largest science + technology sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Aug 12, 2016
OFFICE GIANTS: Technology is giving office workers the chance to play musical chairs
Technology is redefining how offices function and is particularly salient in the growing trend of "hoteling" and "hot seating" or "free addressing."
| Aug 12, 2016
Top 100 Office Construction Firms
Turner Construction Co., Structure Tone, and Gilbane Building Co. top Building Design+Construction’s annual ranking of the nation’s largest office sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Aug 11, 2016
RETAIL GIANTS: Retailers and developers mix it up to stay relevant with shoppers
Retail is becoming closely aligned with entertainment, and malls that can be repositioned as lifestyle centers will have enhanced value.
| Aug 10, 2016
Top 80 Retail Construction Firms
VCC, PCL Construction Enterprises, and The Whiting-Turner Contracting Co. top Building Design+Construction’s annual ranking of the nation’s largest retail sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
| Aug 10, 2016
DATA CENTER GIANTS: Information overload is pushing the limits of mission-critical facilities
Streamlined design and delivery approaches for individual business enterprises and co-location facilities are being born out of the necessity to bring new capacity online as quickly as possible.
Data Centers | Aug 10, 2016
Top 40 Data Center Construction Firms
The Whiting-Turner Contracting Co., Holder Construction Co., and DPR Construction top Building Design+Construction’s annual ranking of the nation’s largest data center sector construction and construction management firms, as reported in the 2016 Giants 300 Report.
Contractors | Aug 10, 2016
Dodge launches new app to simplify pros' search for suitable projects to bid and work on
The product, called PlanRoom, could be particularly useful in sharing data and communications among AEC teams.