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
| May 24, 2012
Construction backlog declines 5.4% in the first quarter of 2012?
The nation’s nonresidential construction activity will remain soft during the summer months, with flat to declining nonresidential construction spending.
| May 24, 2012
Stellar completes St. Mark’s Episcopal Church and Day School renovation and expansion
The project united the school campus and church campus including a 1,200-sf chapel expansion, a new 10,000-sf commons building, 7,400-sf of new covered walkways, and a drop-off pavilion.
| May 23, 2012
MBI Modular Construction Campus Launched on BDCUniversity.com
White Papers, Case Studies, Industry Annual Reports, published articles and more are offered.
| May 23, 2012
Gifford joins Perkins Eastman as principal
Design and planning expertise in science, technology, education, and healthcare.
| May 23, 2012
McRitchie joins McCarthy Building as VP, commercial services in southern California
McRitchie brings more than 18 years of experience in the California construction marketplace.
| May 23, 2012
Arizona Army National Guard Readiness Center awarded LEED Silver
LEED certification of the AZ ARNG Readiness Center was based on a number of green design and construction features SAIC implemented that positively impacted the project and the broader community.
| May 23, 2012
New hospitals invest in data centers to manage growth in patient info
Silver Cross became one of the first hospitals to install patient tracking software so families know where a patient is at all times. New communication equipment supports wireless voice and data networks throughout the hospital, providing access to patients and their families while freeing clinicians to use phones and computers where needed instead of based on location.
| May 23, 2012
Summit Design+Build selected as GC for Chicago restaurant
Little Goat will truly be a multifunctional space. Construction plans include stripping the 10,000 sq. ft. building down to the bare structure everywhere, the installation of a new custom elevator and adding square footage at the second floor with an addition.
| May 22, 2012
Batson-Cook names Partin VP of Business Development
Partin joins general contractor from Georgia Hospital Association.
