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
Giants 400 | Oct 6, 2022
Top 170 Healthcare Sector Architecture + AE Firms for 2022
HDR, CannonDesign, HKS, and Stantec top the ranking of the nation's largest healthcare sector architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. Note: This ranking factors all healthcare sector work, including hospitals, outpatient facilities, and medical office buildings.
Designers / Specifiers / Landscape Architects | Oct 6, 2022
DAHLIN announces acquisition of Design Line Interiors
DAHLIN Architecture | Planning | Interiors announced today that it is expanding its interiors capabilities with the acquisition of Del Mar, California-based Design Line Interiors.
Contractors | Oct 6, 2022
Modular construction gets boost from impacts of the pandemic
The impact of the Covid pandemic on the construction industry appears to be fueling demand for modular construction methods, especially in the western U.S. and Canada.
Webinar | Oct 6, 2022
Register today! Live webinar: The future of 3D + 360° construction progress management
Learn about the value of digital site documentation and progress monitoring, how reality capture is used for site documentation, and the value of both 3D scans and 360 photos. This live webinar will take place Thursday, October 20 at 2 ET/ 1 CT.
Laboratories | Oct 5, 2022
Bigger is better for a maturing life sciences sector
CRB's latest report predicts more diversification and vertical integration in research and production.
Multifamily Housing | Oct 5, 2022
Co-living spaces, wellness-minded designs among innovations in multifamily housing
The booming multifamily sector shows no signs of a significant slowdown heading into 2023. Here is a round up of Giants 400 firms that are driving innovation in this sector.
Contractors | Oct 5, 2022
Materials shortages, cost spikes throwing Design-Bid-Build process out of whack
The traditional Design-Bid-Build delivery process is under considerable stress this year as materials shortages and cost spikes are upending usual practices, according to a new report from JLL.
Green | Oct 5, 2022
In California, a public power provider’s new headquarters serves as a test case for an innovative microgrid and for reducing greenhouse gas emissions
Sonoma Clean Power (SCP), the public power provider for California’s Sonoma and Mendocino Counties, recently unveiled its new all-electric headquarters.
Contractors | Oct 4, 2022
Project managers: Know your workforce
The number of considerations that go into starting a construction project are almost too numerous to count. Contracts, materials, labor, deadlines, even weather, to name a few. They vary from project to project, and any one of them can change in an instant, whether it be materials suddenly in short supply, labor that isn’t available for your particular kind of project (is it luxury hospitality or affordable residential?), or an unexpected phenomenon like Covid-19 that makes everything suddenly screech to a halt.
Contractors | Oct 4, 2022
Which comes first, the building or the cost estimate?
At the start of a project, don’t forget to establish financial parameters when you’re discussing the design and program. By establishing the costs up front, you can avoid the pitfalls that might derail your project and guarantee its lasting success.
