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
Giants 400 | Nov 3, 2017
Top 25 military architecture firms
Jacobs, Michael Baker Intl., and HDR top BD+C’s ranking of the nation’s largest military sector architecture and AE firms, as reported in the 2017 Giants 300 Report.
Engineers | Nov 2, 2017
CannonDesign expands its presence in Colorado with BWG acquisition
Future mergers could be in the offing.
Giants 400 | Nov 1, 2017
Top 35 industrial architecture firms
Jacobs, Stantec, and BRPH top BD+C’s ranking of the nation’s largest industrial sector architecture and AE firms, as reported in the 2017 Giants 300 Report.
K-12 Schools | Oct 31, 2017
Exploring empathy in architecture: Put yourself in your student’s shoes
People are enigmatic and inherently complex, which can make it difficult to design for a larger population.
Architects | Oct 31, 2017
AIA selects recipients for the 2017 Innovation Awards
The program honors projects that highlight collaboration between design and construction teams to create better process efficiencies and overall costs savings.
Giants 400 | Oct 30, 2017
Top 130 green architecture firms
Gensler, Stantec, and HOK top BD+C’s ranking of the nation’s largest green sector architecture and AE firms, as reported in the 2017 Giants 300 Report.
Architects | Oct 30, 2017
City 2050: What will your city look like in 2050?
What do we think the future will look like 30 years or so from now? And what will City: 2050 be like?
Architects | Oct 25, 2017
Mason & Hanger appoints Ben Lilly as its new president
The firm expects to continue mining growth opportunities with its federal agency clients.
Healthcare Facilities | Oct 25, 2017
Creating child-friendly healthcare spaces: Five goals for success
Children often accompany parents or grandparents in medical settings; what can we do to address their unique needs?
Giants 400 | Oct 24, 2017
Top 160 reconstruction architecture firms
Gensler, Jacobs, and Stantec top BD+C’s ranking of the nation’s largest reconstruction sector architecture and AE firms, as reported in the 2017 Giants 300 Report.