Associated Builders and Contractors reported today that its Construction Backlog Indicator declined to 8.7 months in March, according to an ABC member survey conducted March 20 to April 3. The reading is 0.4 months higher than in March 2022.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for March. View the historic Construction Backlog Indicator and Construction Confidence Index data series.
Backlog slipped in March and is now at its lowest level since August 2022. Backlog is down on a monthly basis in every region except for the South, which continues to be associated with elevated levels of current and future construction activity.
ABC’s Construction Confidence Index reading for sales inched higher in March, while the readings for profit margins and staffing levels fell. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
“The deceleration in nonresidential construction activity may have started,” said ABC Chief Economist Anirban Basu. “With widespread fears of recession, credit conditions tightening and more decision-makers turning their attention to cost containment, new construction work may be more difficult for contractors to line up.
“While the confidence and backlog data weakened in March, they indicate a slowing of activity rather than a shift into reverse,” said Basu. “There is a widely held view that financial conditions are tightening in the aftermath of the failures of Silicon Valley Bank and Signature Bank. To the extent that this is true, one could anticipate further slowing and less industry confidence during the months ahead.”
Related Stories
| Sep 14, 2022
Fires on Amazon warehouse roofs seemingly caused by faulty PV installations
Amazon has made installing solar panels on rooftops a key part of its ESG strategy, but a series of events last year show how challenging greening up major facilities can be.
| Sep 14, 2022
Indian tribe’s new educational campus supports culturally appropriate education
The Kenaitze Indian Tribe recently opened the Kahtnuht’ana Duhdeldiht Campus (Kenai River People’s Learning Place), a new education center in Kenai, Alaska.
| Sep 13, 2022
California building codes now allow high-rise mass-timber buildings
California recently enacted new building codes that allow for high-rise mass-timber buildings to be constructed in the state.
| Sep 13, 2022
Orange County opens civic center complex—one of California’s largest P3 projects
Orange County’s recently opened County Administration North (CAN) building caps an urban center development that constitutes one of California’s largest ever P3 projects.
Laboratories | Sep 12, 2022
Lab space scarcity propels construction demand in life sciences sector
In its 2021 Life Sciences Real Estate Outlook, JLL predicted that access to talent would be a primary concern for an industry sector that had been growing by leaps and bounds. A year later, talent still guides real estate decisions. But market conditions of a different sort were cooling the biotech field: namely, investors that have soured on startups which underperformed after going public. What this means for new construction and renovation going forward is unpredictable, as the drivers behind life sciences’ surge are still palpable.
| Sep 12, 2022
Staff at New York City architecture firm is first in U.S. to unionize
Staff at New York City architecture firm is first in U.S. to unionize.
| Sep 12, 2022
San Antonio’s new courthouse aims to provide safety and security while also welcoming the public
The San Antonio Federal Courthouse, which opened earlier this year, replaces a courthouse that had been constructed as a pavilion for the 1968 World’s Fair.
Giants 400 | Sep 9, 2022
Top 25 Casino Contractors + CM Firms for 2022
The Yates Companies, W.E. O'Neil Construction, Alberici-Flintco, and PCL Construction Enterprises top the ranking of the nation's largest casino contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Sep 9, 2022
Top 90 Hospitality Sector Contractors + CM Firms for 2022
AECOM, Suffolk Construction, STO Building Group, and The Yates Companies top the ranking of the nation's largest hospitality facilities sector contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. Note: This ranking includes revenue for all hospitality facilities work, including casinos, hotels, and resorts.
Giants 400 | Sep 9, 2022
Top 80 Hotel Sector Contractors + CM Firms for 2022
AECOM, Suffolk Construction, STO Building Group, and Swinerton top the ranking of the nation's largest hotel and resort sector contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.