Associated Builders and Contractors reported today that its Construction Backlog Indicator held steady at 8.4 months in July, according to an ABC member survey conducted July 22 to Aug. 6. The reading is down 0.9 months from July 2023.
View the full Construction Backlog Indicator and Construction Confidence Index data series.
Only the largest contractors, those with greater than $100 million in annual revenues, have longer backlog than one year ago. On a monthly basis, the decline in backlog was driven by declines among the smallest contractors, those with less than $50 million in annual revenue.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels fell in July. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“Contractor confidence regarding profit margins now stands at the lowest level since November 2022, which comes as little surprise," said ABC Chief Economist Anirban Basu. “There are now strong indications that elevated interest rates have finally taken their toll on a number of privately financed construction segments as well as the broader economy.
“While inflation has moderated in recent months, construction materials prices remain almost 40% above pre-pandemic levels,” said Basu. “With construction spending down for the past two months, the industry eagerly awaits lower interest rates. Given recent economic turmoil, the Federal Reserve will begin cutting rates at its September meeting.”
Related Stories
| Aug 11, 2010
Gulf Coast Hotel's Stormy Road to Recovery
After his initial tour of the dilapidated 1850s-era Battle House Hotel, Ron Blount, construction manager with Retirement Systems of Alabama, said to his boss: “You need a priest more than you need a contractor.” Those words were more prescient to RSA's restoration of the historic Mobile landmark than he could have known at the time.
| Aug 11, 2010
Great Solutions: Products
14. Mod Pod A Nod to Flex Biz Designed by the British firm Tate + Hindle, the OfficePOD is a flexible office space that can be installed, well, just about anywhere, indoors or out. The self-contained modular units measure about seven feet square and are designed to serve as dedicated space for employees who work from home or other remote locations.
| Aug 11, 2010
8 Tips for Converting Remnant Buildings Into Schools
Faced with overcrowded schools and ever-shrinking capital budgets, more and more school districts are turning to the existing building stock for their next school expansion project. Retail malls, big-box stores, warehouses, and even dingy old garages are being transformed into high-performance learning spaces, and at a fraction of the cost and time required to build classrooms from the ground up.
| Aug 11, 2010
Fleet Library, Rhode Island School of Design
When tasked with transforming an early 1920s Italian Renaissance bank building into a fully functional library for the Rhode Island School of Design, the Building Team for RISD's Fleet Library found itself at odds with the project's two main goals. On the one hand, the team would have to carefully restore and preserve the historic charm and ornate architectural details of the landmark space, d...
| Aug 11, 2010
John Adams Courthouse
After more than a century without a substantial renovation, Old Suffolk County Courthouse, designed in Neo-Classical style by Boston's first city architect, George Clough, was overdue for a facelift. Enter the makeover team: Boston-based architects Childs, Bertman, Tseckares and general contractors Suffolk Construction/NER Construction Management.
| Aug 11, 2010
Lifestyle Hotel Trends Around the World
When the Rocco Forte Collection opens the Verdura Golf & Spa Resort in Sicily in early 2009, the 200-room luxury property will be one of the world's newest lifestyle hotels. Lifestyle hotels cater to guests seeking a heightened travel experience, which they deliver by offering distinctive—some would say avant-garde, or even outrageous—architecture, room design, amenities, and en...
| Aug 11, 2010
Special Recognition: Kingswood School Bloomfield Hills, Mich.
Kingswood School is perhaps the best example of Eliel Saarinen's work in North America. Designed in 1930 by the Finnish-born architect, the building was inspired by Frank Lloyd Wright's Prairie Style, with wide overhanging hipped roofs, long horizontal bands of windows, decorative leaded glass doors, and asymmetrical massing of elements.
| Aug 11, 2010
Giants 300 Index and Methodology
BD+C's annual Giants 300 list consists of U.S. firms that designed or constructed the largest volume of commercial, institutional, industrial, and multifamily residential buildings in 2008. Each spring, the editors survey the country's largest firms, ranking the top 300 across six categories: architects, architect/engineers, engineers, engineer/architects, contractors, and construction managers.
| Aug 11, 2010
Joint-Use Facilities Where Everybody Benefits
Shouldn’t major financial investments in new schools benefit both the students and the greater community? Conventional wisdom says yes, of course. That logic explains the growing interest in joint-use schools—innovative facilities designed with shared spaces that address the education needs of students and the community’s need for social, recreation, and civic spaces.
| Aug 11, 2010
The pride of Pasadena
As a shining symbol of civic pride in Los Angeles County, Pasadena City Hall stood as the stately centerpiece of Pasadena's Civic Center since 1927. To the casual observer, the rectangular edifice, designed by San Francisco Classicists John Bakewell, Jr., and Arthur Brown, Jr., appeared to be aging gracefully.