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 “has stabilized at a comfortable level.” The backlog for the nation’s 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 group’s 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.
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.
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 ABC’s series. And while the Northeast isn’t expanding, the region “continues to experience a considerable volume of activity related to commercial development,” including ecommerce fulfillment centers, said ABC.
Backlogs for Commercial/Institutional (which have exceeded eight months for 3½ 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. “The 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,” 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.
“Most contractors continue to express satisfaction regarding the amount of work they have under contract. This is of course truer in certain parts of the nation than others,” said Anirban Basu, ABC’s Chief Economist.
Indeed, backlogs in the West slipped in the latest quarter, even as technology generates “profound levels of activity” in markets like San Jose, Seattle, and San Diego.
ABC's data track a steady increase in national average backlogs dating back to the second quarter of 2009. Image: Associated Builders and Contractors.
Related Stories
Green | Jun 22, 2022
World’s largest commercial Living Building opens in Portland, Ore.
The world’s largest commercial Living Building recently opened in Portland, Ore.
Multifamily Housing | Jun 21, 2022
Two birds, one solution: Can we solve urban last-mile distribution and housing challenges at the same time?
When it comes to the development of both multifamily housing and last-mile distribution centers, particularly in metropolitan environments, each presents its own series of challenges and hurdles. One solution: single-use structures.
Libraries | Jun 21, 2022
Kingston, Ontario, library branch renovation cuts energy use to 55% of benchmark
A recent renovation of the Kingston (Ontario) Frontenac Public Library Central Branch greatly boosted energy and water efficiency while making the facility healthier and safer.
Building Materials | Jun 20, 2022
Early-stage procurement: The next evolution of the construction supply chain
Austin Commercial’s Jason Earnhardt explains why supply chain issues for the construction industry are not going to go away and how developers and owners can get ahead of project roadblocks.
Healthcare Facilities | Jun 20, 2022
Is telehealth finally mainstream?
After more than a century of development, telehealth has become a standard alternative for many types of care.
Building Team | Jun 20, 2022
Andres Caballero Appointed President of Uponor North America
Uponor Corporation (Uponor) has named Andres Caballero president of its Building Solutions – North America division and a member of the Executive Committee at Uponor.
| Jun 20, 2022
An architectural view of school safety and security
With threats ranging from severe weather to active shooters, school leaders, designers, and security consultants face many challenges in creating safe environments that allow children to thrive.
School Construction | Jun 20, 2022
A charter high school breaks ground in L.A.’s Koreatown
A new charter school has broken ground in Los Angeles’ Koreatown neighborhood.
Building Team | Jun 17, 2022
Data analytics in design and construction: from confusion to clarity and the data-driven future
Data helps virtual design and construction (VDC) teams predict project risks and navigate change, which is especially vital in today’s fluctuating construction environment.
Sports and Recreational Facilities | Jun 17, 2022
U. of Georgia football facility expansion provides three floors for high-performance training
A major expansion of the University of Georgia’s football training facility has been completed.
