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
| Aug 11, 2010
Stimulus funding helps get NOAA project off the ground
The award-winning design for the National Oceanic and Atmospheric Administration’s (NOAA) new Southwest Fisheries Science Center (SWFSC) replacement laboratory saw its first sign of movement on Sept 15 with a groundbreaking ceremony held in La Jolla, Calif. The $102 million project is funded primarily by the American Recovery and Reinvestment Act (ARRA), resulting in a rapidly advanced construction plan for the facility.
| Aug 11, 2010
BIM adoption rate exceeds 80% among nation’s largest AEC firms
The nation’s largest architecture, engineering, and construction companies are on the BIM bandwagon in a big way, according to Building Design+Construction’s premier Top 170 BIM Adopters ranking, published as part of the 2009 Giants 300 survey. Of the 320 AEC firms that participated in Giants survey, 83% report having at least one BIM seat license in house, and nearly a quarter (23%) have 100-plus seats.
| Aug 11, 2010
PCA partners with MIT on concrete research center
MIT today announced the creation of the Concrete Sustainability Hub, a research center established at MIT in collaboration with the Portland Cement Association (PCA) and Ready Mixed Concrete (RMC) Research & Education Foundation.
| Aug 11, 2010
Study explains the financial value of green commercial buildings
Green building may be booming, especially in the Northwest, but the claims made for high-performance buildings have been slow to gain traction in the financial community. Appraisers, lenders, investors and brokers have found it difficult to confirm the value of high-performance green features and related savings. A new study of office buildings identifies how high-performance green features and systems can increase the value of commercial buildings.
| Aug 11, 2010
Architecture Billings Index drops to lowest level since June
Another stall in the recovery for the construction industry as the Architecture Billings Index (ABI) dropped to its lowest level since June. The American Institute of Architects (AIA) reported the August ABI rating was 41.7, down slightly from 43.1 in July. This score indicates a decline in demand for design services (any score above 50 indicates an increase in billings).
| Aug 11, 2010
Construction employment declined in 333 of 352 metro areas in June
Construction employment declined in all but 19 communities nationwide this June as compared to June-2008, according to a new analysis of metropolitan-area employment data released today by the Associated General Contractors of America. The analysis shows that few places in America have been spared the widespread downturn in construction employment over the past year.
| Aug 11, 2010
Jacobs, Hensel Phelps among the nation's 50 largest design-build contractors
A ranking of the Top 50 Design-Build Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Balfour Beatty agrees to acquire Parsons Brinckerhoff for $626 million
Balfour Beatty, the international engineering, construction, investment and services group, has agreed to acquire Parsons Brinckerhoff for $626 million. Balfour Beatty executives believe the merger will be a major step forward in accomplishing a number of Balfour Beatty’s objectives, including establishing a global professional services business of scale, creating a leading position in U.S. civil infrastructure, particularly in the transportation sector, and enhancing its global reach.
