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
Government Buildings | Jul 13, 2023
The recently opened U.S. Embassy in Ankara reflects U.S. values while honoring Turkish architecture
The U.S. Department of State’s Bureau of Overseas Buildings Operations (OBO) has recently opened the U.S. Embassy in Ankara, Turkey. The design by Ennead Architects aims to balance transparency and openness with security, according to a press statement. The design also seeks both to honor Turkey’s architectural traditions and to meet OBO’s goals of sustainability, resiliency, and stewardship.
Affordable Housing | Jul 12, 2023
Navigating homelessness with modular building solutions
San Francisco-based architect Chuck Bloszies, FAIA, SE, LEED AP, discusses his firm's designs for Navigation Centers, temporary housing for the homeless in northern California.
Sponsored | Fire and Life Safety | Jul 12, 2023
Fire safety considerations for cantilevered buildings [AIA course]
Bold cantilevered designs are prevalent today, as developers and architects strive to maximize space, views, and natural light in buildings. Cantilevered structures, however, present a host of challenges for building teams, according to José R. Rivera, PE, Associate Principal and Director of Plumbing and Fire Protection with Lilker.
Building Owners | Jul 12, 2023
Building movement: When is it a problem?
As buildings age, their structural conditions can deteriorate, causing damage and safety concerns. In order to mitigate this, it’s important to engage in the regular inspection and condition assessment of buildings for diagnosis.
Mass Timber | Jul 11, 2023
5 solutions to acoustic issues in mass timber buildings
For all its advantages, mass timber also has a less-heralded quality: its acoustic challenges. Exposed wood ceilings and floors have led to issues with excessive noise. Mass timber experts offer practical solutions to the top five acoustic issues in mass timber buildings.
Multifamily Housing | Jul 11, 2023
Converting downtown office into multifamily residential: Let’s stop and think about this
Is the office-to-residential conversion really what’s best for our downtowns from a cultural, urban, economic perspective? Or is this silver bullet really a poison pill?
Contractors | Jul 11, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of June 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in June 2023, according to an ABC member survey conducted June 20 to July 5. The reading is unchanged from June 2022.
Codes | Jul 10, 2023
Water Demand Calculator outperforms traditional plumbing codes for energy, carbon, and water savings
Using IAPMO’s Water Demand Calculator tool can result in energy, carbon, and water savings as compared to using traditional plumbing specification methods in plumbing codes, according to a study by Arup.
Adaptive Reuse | Jul 10, 2023
California updates building code for adaptive reuse of office, retail structures for housing
The California Building Standards Commission recently voted to make it easier to convert commercial properties to residential use. The commission adopted provisions of the International Existing Building Code (IEBC) that allow developers more flexibility for adaptive reuse of retail and office structures.
Laboratories | Jul 10, 2023
U.S. Department of Agriculture opens nation’s first biosafety level 4 containment facility for animal disease research
Replacing a seven-decade-old animal disease center, the National Bio and Agro-Defense Facility includes the nation’s first facility with biosafety containment capable of housing large livestock.