Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 9.3 months in July, according to an ABC member survey conducted July 20 to Aug. 4. The reading is up by 0.6 months since July 2022.
The South remains the region with the highest level of backlog, despite being the only region with lower backlog on a year-ago basis. Backlog gains in July were concentrated in the commercial and institutional category.
“Nonresidential construction backlog continues to expand, which is precisely what contractors had predicted six months ago," said ABC Chief Economist Anirban Basu. "For many months, contractors have been signaling an expectation that demand for their services would continue to expand despite high and rising interest rates and a spate of regional bank failures.
“That said, there are some surprises in the data,” said Basu. “Backlog declined in both the infrastructure and heavy industry categories, possibly because the current administration is striving to reserve many large-scale projects for unionized firms. ABC members are largely nonunion, and therefore may be locked out of a meaningful proportion of significant opportunities. Diminished competition for such projects would tend to drive up construction service delivery charges, much of which are financed by American taxpayers."
ABC’s Construction Confidence Index reading for profit margins and staffing levels moved higher in July, while the reading for sales fell slightly. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
Related Stories
Big Data | Dec 4, 2019
AEC data's coming out party
AEC firms are finally putting to use project information they’ve been storing in their computers for years.
Building Owners | Dec 2, 2019
What building owners and AEC teams need to know about New York’s Climate Mobilization Act
On April 18, 2019, the New York City Council passed the Climate Mobilization Act, a suite of laws aimed to meet the city’s commitment to achieving carbon neutrality by 2050.
Multifamily Housing | Nov 7, 2019
Multifamily construction market remains strong heading into 2020
Fewer than one in 10 AEC firms doing multifamily work reported a decrease in proposal activity in Q3 2019, according to a PSMJ report.
Contractors | Nov 5, 2019
Updated AIA contracts clarify the role of construction managers
The revised documents refine how CMs serve as general contractors or project advisers.
Architects | Oct 29, 2019
Top takeaways from the Lean Construction Institute Congress 2019
More than 1,600 Lean experts gathered in Texas this month for LCI Congress 2019. Here are key takeaways from the event.
Giants 400 | Oct 25, 2019
Top 55 Airport Sector Construction Firms for 2019
Hensel Phelps, AECOM, Turner, Skanska, and PCL top the rankings of the nation's largest airport terminal sector contractors and construction management firms, as reported in Building Design+Construction's 2019 Giants 300 Report.
Giants 400 | Oct 24, 2019
Top 80 Retail Construction Firms for 2019
PCL, VCC, Whiting-Turner, Shawmut, and W.E. O'Neil top the rankings of the nation's largest retail sector contractors and construction management firms, as reported in Building Design+Construction's 2019 Giants 300 Report.
Contractors | Oct 24, 2019
Get them while they’re young: programs that promote the construction industry target students
Turner uses one of its jobsites in Nashville to immerse middle-school teachers in the ins and outs of building.
Contractors | Oct 17, 2019
Are contractors collecting what they need to make better decisions?
Research focused on five key types of data: project progress, manhours, productivity, safety, and equipment management.
Architects | Oct 11, 2019
SMPS report tracks how AEC firms are utilizing marketing technology tools
With thousands of MarTech tools and apps on the market, design and construction firms are struggling to keep up.