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
| Mar 6, 2014
Must see: Tour Seinfeld's apartment with virtual reality headset
Fans of the show can now explore a virtual 3D model of the iconic New York residence, thanks to one Web designer's painstaking effort.
| Mar 5, 2014
5 tile design trends for 2014
Beveled, geometric, and high-tech patterns are among the hot ceramic tile trends, say tile design experts.
| Mar 4, 2014
How EIFS came to America
Design experts from Hoffmann Architects offer a brief history of exterior insulation and finish systems in the U.S.
| Mar 4, 2014
CENTRIA Demonstrates Commitment to Contractors
New Brochure Highlights Architectural Metal Panel Manufacturer’s Products, Expertise and Experience
| Mar 3, 2014
Engineering and construction CEOs are cautiously optimistic about the global economy, says PwC
Firm leaders remain leery about the availability of skilled workers, the state of government debt and deficits, and rising material prices, according to PwC’s 2014 Global CEO Survey.
| Feb 27, 2014
Target converts former prison dump into latest big-box store
Target's new San Rafael, Calif., location was built on the site of the former San Quentin prison dump.
| Feb 27, 2014
12 facts about heat-treated glass: Why stronger isn’t always better
Glass is heat-treated for two reasons: the first is to increase its strength to resist external stresses such as wind and snow loads, or thermal loads caused by the sun’s energy. The second is to temper glass so that it meets safety glazing requirements defined by applicable codes or federal standards.
| Feb 27, 2014
Metal Construction Association introduces two Environmental Product Declarations
Two Environmental Product Declarations (EPD), one for Metal Composite Material Panels and one for Roll Formed Steel Panels for Roofs and Walls, are now available free of charge from the Metal Construction Association (MCA) on its website.
| Feb 27, 2014
Bluebeam Software launches Revu 12 for better field-ready document management and project collaboration
The latest version of the company’s flagship solution better enables users in document-intensive industries to digitally collaborate on project documents and more easily connect the office to the field.
| Feb 27, 2014
PocketCake lunches CPU designed for virtual reality simulations
The company's Virtual Reality Simulation Converter Assembly is three times more powerful than the average high-performance computer and allows for up to eight people to experience a virtual reality simulation at the same time.