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
| Jun 25, 2012
Thornton Tomasetti appoints Hofmeister and Zhu to board of directors
The addition of Hofmeister and Zhu brings the number of directors to 10.
| Jun 15, 2012
Beck Group/Atlanta wins AGC Build Georgia Award
Site-specific safety plan, BIM analysis and third-party structural review contributed to successful implementation.
| Jun 15, 2012
Baldwin joins Charlotte office of Perkins Eastman as principal
Experience in healthcare planning and design to expand national healthcare practice in South and Mid-Atlantic.
| Jun 15, 2012
InPro’s bio-content becomes Cradle-to-Cradle CertifiedCM Silver
Two main components of G2 Blend formula now C2C Certified Silver.
| Jun 14, 2012
A. Eugene Kohn Watercolor Exhibition a showcase of KPF artwork in NYC
Kohn's watercolors have previously been displayed at the Guggenheim Museum in a show for the works of well-known architects.
| Jun 14, 2012
Gilbane names two new executive vice presidents
Dennis Cornick and Thomas Laird join Gilbane's executive team, expanding the company's leadership to drive business goals.
| Jun 14, 2012
Viscardi joins LEO A DALY as VP, corporate director of aviation programs
Viscardi will be responsible for providing the vision and strategy for growing the firm’s aviation practice, identifying and establishing new clients, as well as maintaining existing client relationships.
| Jun 14, 2012
Sustainability consultant’s keynote highlights the evolution of LEED green building in Spain
Sustainability planning, green building and water efficiency consultant, Jerry Yudelson keynoted the celebration of Spain’s first LEED Platinum Municipal Green Building.
| Jun 13, 2012
Thornton Tomasetti founding principals receive CTBUH Fazlur R. Khan Lifetime Achievement Medal
This is the first time the CTBUH Board of Trustees has awarded the prize to two individuals jointly.