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
Contractors | Nov 12, 2015
Construction will outpace worldwide GDP growth over the next 15 years
Three countries—the United States, China, and India—will account for nearly three-fifths of worldwide construction growth over the next 15 years, according to a new report from Global Construction Perspectives and Oxford Economics.
Contractors | Nov 5, 2015
Budget bill provision raises OSHA fines for first time in 25 years
Inflation-adjusted penalty hikes could go up as much as 80%.
Contractors | Nov 3, 2015
ABC, AIA & NAHB: Residential, nonresidential construction growth expected in 2016
Economists from the three trade associations discussed several indicators for sector performance in a joint web conference.
Contractors | Nov 2, 2015
ABC: September's nonresidential spending slip no cause for concern
Despite the monthly drop, September's year-over-year increase is largest in seven years. Seven of 16 nonresidential construction sectors saw spending increases.
Contractors | Oct 30, 2015
ABC: Economic growth stronger than headline GDP figure suggests
GDP expanded 1.5% during the third quarter while nonresidential fixed investment expanded by 2.1% during that period.
BIM and Information Technology | Oct 29, 2015
MIT develops ‘river of 3D pixels’ to assemble objects
The Kinetic Blocks can manipulate objects into shapes without human interference.
Contractors | Oct 28, 2015
Office construction costs highest in New York City, San Francisco, says CBRE
A CBRE report found that New York’s construction costs are more than $500 per sf. San Francisco isn’t too far behind.
Contractors | Oct 16, 2015
ABC report: Confidence rises during the first half of the year
In the first half, sales expectations and profit margin expectations rose while staffing level intentions dipped slightly.
Contractors | Oct 7, 2015
Construction equipment continues to be vulnerable to theft
Poor security and lax inventory control make jobsites sitting ducks for robbers, according to crime-data analysis by LoJack.
Office Buildings | Oct 5, 2015
Renderings revealed for Apple's second 'spaceship': a curvy, lush office complex in Sunnyvale
The project has been dubbed as another “spaceship,” referencing the nickname for the loop-shaped Apple Campus under construction in Cupertino.