In markets where labor continues to be in short supply, contractors that can attract and retain workers are capable of accepting projects that other manpower-deficient competitors might be turning away.
Labor availability is an important distinction in a construction market that āhas stabilized at a comfortable level.ā The backlog for the nationās largest contractors stands at a record 12 months, according to the latest estimates from Associated Builders and Contractors (ABC), a national trade association representing 70 chapters with nearly 21,000 members.
The groupās Construction Backlog Indicator, which has measured the national backlog average for every quarter since Q2 2009, stood at 8.6 months, compared to 8.7 months in Q4 2015 and 8.5 months for Q1 2015.
Where contractor backlogs in the Midwest increased by double digit percentages in the latest quarter measured, they fell in the Northeast, South, and West compared to the previous quarter.
Ā
ABC's latest Construction Backlog Index shows that contractors in the Midwest saw the biggest change in their backlogs during the first quarter of this year, as did companies whose revenues range from $50 million to $100 million. Image: Associated Builders and Contractors.Ā
Ā
However, contractors in the South have reported average backlogs in excess of 10 months for three consecutive quarters, which is unprecedented in the history of ABCās series. And while the Northeast isnāt expanding, the region ācontinues to experience a considerable volume of activity related to commercial development,ā including ecommerce fulfillment centers, said ABC.
Backlogs forĀ Commercial/Institutional (which have exceeded eight months for 3Ā½ years), and heavy industrial were up in the most recent quarter tracked, where infrastructure backlogs, while outpacing other sectors at 11.2 months, were down slightly. āThe passage of the FAST Act and growing focus among many state and local government policymakers should allow backlog in the infrastructure category to remain elevated,ā ABC stated.
Companies with more than $100 million in revenue reported an average 12.25 months of backlog, representing a 3.8% gain over the previous quarter, which itself had set the previous record.
Apparently, the largest firms have recently been taking market share primarily from companies in the $30 million to $100 million range, which reported backlog declines. Companies under $30 million in revenue, on the other hand, enjoyed a modest backlog increase, and have collectively reported backlogs in excess of seven months for 11 consecutive quarters.
āMost contractors continue to express satisfaction regarding the amount of work they have under contract. Ā This is of course truer in certain parts of the nation than others,ā said Anirban Basu, ABCās Chief Economist.
Indeed, backlogs in the West slipped in the latest quarter, even as technology generates āprofound levels of activityā in markets like San Jose, Seattle, and San Diego.
Ā
ABC's data trackĀ a steady increase in national average backlogs dating back to the second quarter of 2009. Image: Associated Builders and Contractors.
Ā
Ā
Related Stories
| Oct 7, 2014
Structured, not stirred: The architecture of cocktails [infographic]
In this downloadable graphic, technologist Shaan HurleyĀ dissects 37 cocktails and analyzes their architectural makeup.Ā
| Oct 6, 2014
Moshe Safdie: Skyscrapers lead to erosion of urban connectivity
The 76-year-old architect sees skyscrapers and the privatization of public space to be the most problematic parts of modern city design.Ā
| Oct 6, 2014
Houston's office construction is soaring
Houston has 19 million square feet of office space under construction, 54% more than a year ago, and its highest level since the booming 1980s, according to local news reports.
| Oct 6, 2014
Retelling an old story: Why women are underrepresented in architecture
Women account for more than half of the U.S. population. But even with significant gains over the past 25 years, their numbers and positions among the ranks of practicing architects appear to have stalled.
| Oct 3, 2014
New survey tracks Americansā attitudes towards transit use
A record 10.7 billion rides were taken on public transit in the United States last year. And a national survey of Americans finds that the speed, reliability, and cost, more than any other factors, determine peopleās willingness and frequency of use.
| Oct 2, 2014
Effective use of building enclosure mock-ups within the commissioning process
Engineers from SSR offer advice and guidelines on implementing building enclosure mockups on any project.
| Oct 2, 2014
Budget busters: Report details 24 of the world's most obscenely over-budget construction projects
Montreal's Olympic Stadium and the Sydney Opera House are among the landmark projects to bust their budgets, according to a new interactive graph by Podio.Ā
| Oct 1, 2014
Philip Johnson's iconic Crystal Cathedral to be modernized, made 'intrinsically Catholic'
Johnson Fain and Rios Clementi Hale Studios have been commissioned by the Roman Catholic Diocese of Orange to upgrade the all-glass church in Garden Grove, Calif. The church acquired the property in 2012.Ā
| Oct 1, 2014
4 trends shaping the future of data centers
As a designer of mission critical facilities, Iāve learned that itās really difficult to build data centers to keep pace with technology, yet thatās a reality we face along with our clients, writes Gensler's Jackson Metcalf.Ā
| Oct 1, 2014
EYP, WHR Architects merge, strengthening presence in education, healthcare, energy sectors
The merger unites 530 professionals to better address some of the most critical issues facing our nation, namely education, healthcare, and energy. Ā