Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 9.2 months in February, according to an ABC member survey conducted Feb. 20 to March 6. The reading is 1.2 months higher than in February 2022.
Backlog rebounded in February and for the past four months has hovered around highs not seen since the start of the pandemic. The Southern region continues to post the highest backlog of any region and, as of February, has had at least 11 months of backlog in four of the previous five months.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for February. View the historic Construction Backlog Indicator and Construction Confidence Index data series.
ABC’s Construction Confidence Index reading for sales, profit margins and staffing levels increased in February. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
“Despite a gloomy economic forecast and extraordinarily elevated borrowing costs, contractor backlog and confidence continue to rise,” said ABC Chief Economist Anirban Basu. “This mirrors the broader economy, which has thus far proved resilient in the face of rising interest rates. While economic strength, particularly regarding labor demand, is surprising, interest rate increases typically take 12 to 18 months to affect the broader economy, and the first interest rate increase occurred in March 2022.
“While backlog remains at a historically elevated level, borrowing costs will continue to rise during the next several months, and contractors continue to struggle in the face of skilled labor shortages,” said Basu. “If economic momentum fades this year, as a majority of forecasters continue to predict, then backlog and confidence may decline, especially for contractors working predominantly on privately financed projects.”
Related Stories
| Jun 11, 2018
Accelerate Live! talk: Regenerative design — When sustainability is not enough
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), HMC’s Eric Carbonnier poses the question: What if buildings could actually rejuvenate ecosystems?
| Jun 11, 2018
Accelerate Live! talk: The smart jobsite — Predictive visual data analytics for proactive project controls
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), a trio of experts in predictive visual data analytics presents how design-build giant Clayco has leveraged this technology to achieve production efficiency on several construction sites.
| Jun 11, 2018
Accelerate Live! talk: ‘AEC can has Blockchains?’
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), HOK’s Greg Schleusner explores how the AEC industry could adapt the best ideas from other industries (banking, manufacturing, tech) to modernize inefficient design and construction processes.
| Jun 11, 2018
Accelerate Live! talk: How advanced digital fabrication techniques are driving design innovation
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), SOM’s Lucas Tryggestad and Kyle Vansice present the firm’s 3D-printed building project and explore how digital fabrication is pushing design innovation.
| Jun 11, 2018
Accelerate Live! talk: AEC data hunter - How a Fortune 500 data guru is transforming a construction giant
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), data expert Catherine Rose shares how data-driven decision making is transforming construction operations and business operations at Skanska USA.
Libraries | Jun 1, 2018
New library offers a one-stop shop for what society is craving: hands-on learning
Beyond lending books and DVDs, the Elkridge (Md.) branch library loans household tools like ladders, wheelbarrows, and sewing machines.
| May 30, 2018
Accelerate Live! talk: Seven technologies that restore glory to the master builder
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), AEC technophile Rohit Arora outlines emerging innovations that are poised to transform how we design and build structures in the near future.
| May 30, 2018
Accelerate Live! talk: Why the AEC industry must adapt to the Internet of Things boom
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), building systems expert Jeff Carpenter explores established and emerging IoT applications for commercial and institutional buildings, and offers a technology roadmap for navigating the IoT landscape.
| May 30, 2018
Accelerate Live! talk: T3 mass timber office buildings
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), architect and mass timber design expert Steve Cavanaugh tells the story behind the nation’s newest—and largest—mass timber building: T3 in Minneapolis.
| May 30, 2018
Accelerate Live! talk: An AEC giant’s roadmap for integrating design, manufacturing, and construction
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), Skender CEO Mark Skender and Chief Design Officer Tim Swanson present the construction giant’s vision for creating a manufacturing-minded, vertically-integrated design-manufacturing-build business model.