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
3D Printing | Dec 7, 2018
Additive manufacturing heads to the jobsite
Prototype mobile 3D printing shop aims to identify additive manufacturing applications for construction jobsites.
Architects | Dec 6, 2018
Payette honored with 2019 AIA Architecture Firm Award
The award recognizes a firm that has consistently produced distinguished architecture for at least 10 years.
Biophilic Design | Nov 19, 2018
Biophilic design: What is it? Why it matters? And how do we use it?
As we continue to move toward the city and spend more time indoors, our day-to-day interaction with quality nature is shrinking. One contemporary concept to reverse this effect is biophilic design, a strategic approach to tap into—and harness—nature in the built environment.
Architects | Nov 6, 2018
Kohn Pedersen Fox opens three new offices
Following exciting current work, new commissions, and upcoming opportunities, global architecture firm embraces the future with new outposts.
Architects | Oct 2, 2018
Gensler, in latest report, highlights where resilient design could make the greatest impact on the built environment
The firm showcases its own recent projects as demonstrations for what can work in six areas.
Architects | Sep 24, 2018
Assembly (and rigorous planning) required: Managing the pros and cons of modular construction
While offering efficiency and flexibility, modular construction requires extensive planning and collaboration to avoid potential challenges.
Architects | Sep 19, 2018
Back it up: Parking lot trends
There are two shifts that we are seeing in parking lot planning and design – and these shifts are rooted in parking’s place at the intersection of environment, transportation, and market behavior.
Architects | Sep 14, 2018
We’ve entered the golden age of brain science. What does it mean for AEC firms?
New research from the SMPS Foundation explores the known principles and most recent research surrounding the human brain and behavioral science. The goal: to discover connections between the science and the AEC business.
Architects | Sep 6, 2018
S/L/A/M Collaborative completes merger with L.A.-based firm
The healthcare sector is one of Frank Webb Architects’ strengths.
Giants 400 | Sep 6, 2018
What's happening at 89 design firms
The latest developments at 89 of the nation's largest architecture and architecture/engineering (AE) firms.