Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in May, according to an ABC member survey conducted May 20 to June 7. The reading is 0.1 months lower than in May 2022.
Backlog in the infrastructure category ticked up again and has now returned to May 2022 levels. On a regional basis, backlog increased in every region but the Northeast.
ABC’s Construction Confidence Index reading for sales and staffing levels moved lower in May while the reading for profit margins increased. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
“During a period of ongoing tumult associated with major bank failures, a near-miss debt ceiling crisis and shifting monetary policy, nonresidential construction backlog has remained remarkably stable,” said ABC Chief Economist Anirban Basu. “At nearly nine months, backlog is essentially unchanged from a year ago and the previous month.
“Moreover, contractor confidence remains elevated despite massive increases in cost of capital and growing concerns over the nation’s commercial real estate segment, with firms indicating sufficient demand and associated pricing power that will keep profit margins steady or better,” said Basu. “Contractors also expect to bring on additional talent over the next six months, an indication of ongoing industry expansion."
Related Stories
Coronavirus | May 26, 2020
9 tips for mastering virtual public meetings during the COVID-19 pandemic
Mike Aziz, AIA, presents 9 tips for mastering virtual public meetings during the COVID-19 pandemic.
Coronavirus | May 18, 2020
Infection control in office buildings: Preparing for re-occupancy amid the coronavirus
Making workplaces safer will require behavioral resolve nudged by design.
Data Centers | May 8, 2020
Data centers as a service: The next big opportunity for design teams
As data centers compete to process more data with lower latency, the AEC industry is ideally positioned to develop design standards that ensure long-term flexibility.
Coronavirus | Apr 30, 2020
Gilbane shares supply-chain status of products affected by coronavirus
Imported products seem more susceptible to delays
Coronavirus | Apr 14, 2020
COVID-19 alert: Missouri’s first Alternate Care Facility ready for coronavirus patients
Missouri’s first Alternate Care Facility ready for coronavirus patients
AEC Tech | Apr 13, 2020
A robotic dog becomes part of Swinerton’s construction technology arsenal
Boston Dynamics, the robot’s creator, has about 100 machines in the field currently.
Coronavirus | Apr 8, 2020
COVID-19 alert: Most U.S. roofing contractors hit by coronavirus, says NRCA
NRCA survey shows 52% of roofing contractor said COVID-19 pandemic was having a significant or very significant impact on their businesses.
Coronavirus | Apr 5, 2020
COVID-19: Most multifamily contractors experiencing delays in projects due to coronavirus pandemic
The NMHC Construction Survey is intended to gauge the magnitude of the disruption caused by the COVID-19 outbreak on multifamily construction.
Coronavirus | Apr 4, 2020
COVID-19: Construction completed on first phase of Chicago's McCormick Place into Alternate Care Facility
Walsh Construction, one of the largest contractors in the city of Chicago and in the United States, is leading the temporary conversion of a portion of the McCormick Place Convention Center into an Alternate Care Facility (ACF) for novel coronavirus patients. Construction on the first 500 beds was completed on April 3.