Associated Builders and Contractors' Construction Backlog Indicator increased to 8.9 months in April from 8.7 in March, according to an ABC member survey conducted April 20 to May 3. The reading is 0.1 months higher than in April 2022.
After declining to a seven-month low in March, backlog rebounded in April due to strength in the infrastructure category. Regionally, backlog increased in the Northeast and West but fell in the South and middle states.
ABC’s Construction Confidence Index reading for sales and staffing moved higher in April, while the readings for profit margins inched lower. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
“Based on ABC member sentiment, one would not be able to discern that interest rates are high, the nation’s banking sector is in tumult, politicians are arguing over the nation’s debt limit and recession fears remain pervasive,” said ABC Chief Economist Anirban Basu. “Despite many headwinds and an active news cycle, contractors continue to express confidence in the near term.
“Still, there is some evidence of a shift,” said Basu. “With credit conditions tightening, expectations are that private construction is poised for weaker times ahead. Nonetheless, backlog expanded in April, as infrastructure contractors began to take on more public works projects. Moreover, despite rapidly rising compensation costs, more ABC contractors expect profit margins to expand as opposed to recede over the next six months, evidence of sufficiently strong demand for construction services to support pricing power.”
Related Stories
Windows and Doors | Feb 28, 2024
DOE launches $2 million prize to advance cost-effective, energy-efficient commercial windows
The U.S. Department of Energy launched the American-Made Building Envelope Innovation Prize—Secondary Glazing Systems. The program will offer up to $2 million to encourage production of high-performance, cost-effective commercial windows.
AEC Innovators | Feb 28, 2024
How Suffolk Construction identifies ConTech and PropTech startups for investment, adoption
Contractor giant Suffolk Construction has invested in 27 ConTech and PropTech companies since 2019 through its Suffolk Technologies venture capital firm. Parker Mundt, Suffolk Technologies’ Vice President–Platforms, recently spoke with Building Design+Construction about his company’s investment strategy.
Performing Arts Centers | Feb 27, 2024
Frank Gehry-designed expansion of the Colburn School performing arts center set to break ground
In April, the Colburn School, an institute for music and dance education and performance, will break ground on a 100,000-sf expansion designed by architect Frank Gehry. Located in downtown Los Angeles, the performing arts center will join the neighboring Walt Disney Concert Hall and The Grand by Gehry, forming the largest concentration of Gehry-designed buildings in the world.
Construction Costs | Feb 27, 2024
Experts see construction material prices stabilizing in 2024
Gordian’s Q1 2024 Quarterly Construction Cost Insights Report brings good news: Although there are some materials whose prices have continued to show volatility, costs at a macro level are returning to a level of stability, suggesting predictable historical price escalation factors.
Construction Costs | Feb 22, 2024
K-12 school construction costs for 2024
Data from Gordian breaks down the average cost per square foot for four different types of K-12 school buildings (elementary schools, junior high schools, high schools, and vocational schools) across 10 U.S. cities.
MFPRO+ Special Reports | Feb 22, 2024
Crystal Lagoons: A deep dive into real estate's most extreme guest amenity
These year-round, manmade, crystal clear blue lagoons offer a groundbreaking technology with immense potential to redefine the concept of water amenities. However, navigating regulatory challenges and ensuring long-term sustainability are crucial to success with Crystal Lagoons.
Architects | Feb 21, 2024
Architecture Billings Index remains in 'declining billings' state in January 2024
Architecture firm billings remained soft entering into 2024, with an AIA/Deltek Architecture Billings Index (ABI) score of 46.2 in January. Any score below 50.0 indicates decreasing business conditions.
AEC Tech | Feb 20, 2024
AI for construction: What kind of tool can artificial intelligence become for AEC teams?
Avoiding the hype and gathering good data are half the battle toward making artificial intelligence tools useful for performing design, operational, and jobsite tasks.
Building Tech | Feb 20, 2024
Construction method featuring LEGO-like bricks wins global innovation award
A new construction method featuring LEGO-like bricks made from a renewable composite material took first place for building innovations at the 2024 JEC Composites Innovation Awards in Paris, France.
AEC Tech | Feb 20, 2024
ABC releases technology guide for AI in construction
Associated Builders and Contractors has released an artificial intelligence (AI) technology guide for the U.S. construction industry. AI in Construction — What Does It Mean for Our Contractors? outlines definitions, construction use cases, and considerations for the implementation of AI in construction.