Associated Builders and Contractors (ABC) released its Construction Backlog Indicator (CBI) for the first quarter of 2012. CBI declined 5.4% from the previous quarter, dipping from 7.8 months to 7.4 months, but is slightly higher compared to the first quarter of 2011.
“On the heels of a mixed bag of national economic news, CBI declined for the second quarter in a row,” said ABC Chief Economist Anirban Basu. “The lull in nonresidential construction momentum is not poised to end in the immediate term. The nation’s nonresidential construction activity will remain soft during the summer months, with flat to declining nonresidential construction spending.
“The ongoing instability in the nation’s nonresidential construction industry appears to be related to the period of economic weakness that developed in the broader economy last year, as well as concerns regarding export growth due to recessionary forces in Europe,” Basu said. “The result is that many prospective construction projects were cancelled or postponed.”
Regional highlights
- Compared to the first quarter of 2011, construction backlog is slightly higher in every region with the exception of the Northeast.
- In the West, construction backlog expanded by 0.46 months from the fourth quarter of 2011 to the first quarter of this year.
- The Middle States have the shortest backlog at 6.34 months and the South continues to register the lengthiest backlog at 8.88 months.
Analysis
“The South, which includes a number of rapidly expanding, commodity rich states, continues to be the top performer in terms of producing new opportunities for contractors,” said Basu. “Though average construction backlog in the South was roughly flat during the past quarter, backlog is up by seven-tenths of a month from one year ago. No other region has generated an increase in backlog that large.
“Construction backlog expansion in the Middle States continues to be stifled,” Basu said. “Gains in industrial production have been sporadic during the past year – too scattered to induce the next wave of manufacturing-related construction projects. In addition, average construction backlog in the Northeast has fallen on a year-over-year basis. Last year’s soft patch, including the economic weakness associated with the debt ceiling issue, appears to have impacted the financial institution-rich Northeast more than other region.” +
Related Stories
Multifamily Housing | Jul 6, 2022
The power of contextual housing development
Creating urban villages and vibrant communities starts with a better understanding of place, writes LPA's Matthew Porreca.
Building Team | Jul 6, 2022
Buro Happold selects Jennifer Price for top role, US Managing Director
Buro Happold, a world-class practice of 2,200 engineers and consultants, has announced the appointment of Seattle-based Jennifer Price as US Managing Director and Partner.
University Buildings | Jul 6, 2022
Wenzhou-Kean University opens a campus building that bridges China’s past and future
After pandemic-related stops and starts, Wenzhou-Kean University’s Ge Hekai Hall has finally begun to see full occupancy.
Security and Life Safety | Jul 5, 2022
What AEC firms should look for in a cybersecurity partner
When looking for expert partners in cybersecurity, AEC firms will find quite a lot of companies claiming to be at the forefront of modern threats. Here are five key points to look for when choosing a cybersecurity firm.
Performing Arts Centers | Jul 5, 2022
Tour the new Patricia Reser Center for the Arts in Oregon
This month, the community of Beaverton, Oregon, welcomed a new haven for artistic expression with the opening of Patricia Reser Center for the Arts (The Reser).
Building Team | Jul 5, 2022
Dallas’ Fair Park, home to the State Fair of Texas, will place a park atop a new parking garage
A registered National Historic Landmark, Fair Park is the 227-acre home to the Texas State Fair and various cultural institutions in Dallas, Tex.
Market Data | Jul 1, 2022
Nonresidential construction spending slightly dips in May, says ABC
National nonresidential construction spending was down by 0.6% in May, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
Building Team | Jul 1, 2022
How to apply WELL for better design outcomes
The International WELL Building Institute (IWBI) cites attracting top talent, increasing productivity, and improving environmental, social or governance (ESG) performance as key outcomes of leveraging tools like their WELL Building Standard to develop healthier environments.
Building Team | Jul 1, 2022
Less portable potty, more movable restroom
Some contractors are packing up their portable potties and instead using the H3 Wellness Hub.
Market Data | Jun 30, 2022
Yardi Matrix releases new national rent growth forecast
Rents in most American cities continue to rise slightly each month, but are not duplicating the rapid escalation rates exhibited in 2021.
