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 23, 2019
Is prefab in your future?
The most important benefit of offsite construction, when done right, is reliability.
Healthcare Facilities | Jul 15, 2019
Can a kids’ healthcare space teach, entertain, and heal?
Standard building requirements don’t have to be boring. Here’s how you can inject whimsical touches into everyday design features.
Architects | Jul 10, 2019
9 picks from NeoCon 2019
Interior architect Mary Bartlett selects her favorite products and systems from the 2019 NeoCon show, Chicago, June 10-12, 2019.
BD+C University Course | Jul 8, 2019
Shadow box design: To vent or not to vent [AIA course]
A curtain wall shadow box is a spandrel assembly consisting of vision glass at the building exterior and an opaque infill at the interior side of the curtain wall system. This course is worth 1.0 AIA LU/HSW.
Architects | Jul 8, 2019
Unity Temple, Robie House among eight Frank Lloyd Wright projects to receive World Heritage status
The UNESCO designation includes signature works designed by Wright during the first half of the 20th century.
Architects | Jul 1, 2019
Perkins Eastman Co-founder Mary-Jean Eastman to keynote Women in Design+Construction Conference
Two of Perkins Eastman’s firm leaders—Mary-Jean Eastman, FAIA, Vice Chair and Managing Principal of its New York City studio, and Barbara Mullenex, AIA, Managing Principal of the Washington, D.C., studio—will share anecdotes about their personal journeys to the top of a global architecture, design, and planning firm, at Building Design+Construction's fourth annual Women in Design+Construction Conference. The event will take place November 11-13, 2019, at the Fairmont Scottsdale Princess resort in Scottsdale, Ariz.
Sports and Recreational Facilities | Jun 27, 2019
Foster + Partners unveils design of wooden boathouse for Row New York
The project will sit on the banks of the Harlem River in Sherman Creek Park.
Building Tech | Jun 26, 2019
Modular construction can deliver projects 50% faster
Modular construction can deliver projects 20% to 50% faster than traditional methods and drastically reshape how buildings are delivered, according to a new report from McKinsey & Co.
Architects | Jun 24, 2019
Clayco combines architecture and design assets into one business unit
Lamar Johnson Collaborative adds BatesForum.
Architects | Jun 14, 2019
Making public facilities more public
Municipal facilities must strike a delicate balance between openness and security.