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
Architects | Apr 5, 2018
AIA grants $100,000 to four Upjohn Research Initiative projects
The purpose of the grant is to provide base funds for applied research projects that will advance the design profession’s knowledge and practice.
Architects | Apr 5, 2018
Tech Report 5.0: The Human Touch
Can studying humans at a behavioral level produce better buildings? Cognitive architecture experts are working to find out.
Architects | Apr 4, 2018
How to acquire speaking engagements and hone your skills
So, you understand the benefits, but how do you actually get started with speaking engagements?
Architects | Apr 4, 2018
8 things to consider before using digital media to communicate with employees
The Marlin Company, a visual communications and digital signage provider, published a guide that outlines eight basic questions, along with some advice, about workplace digital signage.
Education Facilities | Mar 30, 2018
How can we design safer schools in the age of active shooters?
How can we balance the need for additional security with design principles that foster a more nurturing next-generation learning environment for students?
Architects | Mar 26, 2018
Designing for homeless facilities: Critical spaces to consider
The City of San Diego is home to the fourth largest homeless population in the U.S.
Education Facilities | Mar 23, 2018
An introvert's oasis: How to create learning environments for all student types
In order to understand why a school day can be so grueling for an introverted student, it’s important to know what it means to be introverted, writes NAC Architecture’s Emily Spiller.
Architects | Mar 22, 2018
The benefits and nuances of integrated design
Achieving integrated design usually means operating under a strong relationship.
Architects | Mar 14, 2018
Becoming nature: The building design evolution meets the living building revolution
With the environmental movement, sustainability became a marker of innovation in design for the built environment.
Office Buildings | Mar 12, 2018
Sound advice on workplace design
Thoughtful design, paired with a change management program to educate staff, can both enhance connectivity and minimize distractions.