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
| Oct 9, 2014
Beyond the bench: Meet the modern laboratory facility
Like office workers escaping from the perceived confines of cubicles, today’s scientists have been freed from the trappings of the typical lab bench, writes Perkins+Will's Bill Harris.
| Oct 8, 2014
New tools for community feedback and action
Too often, members of a community are put into a reactive position, asked for their input only when a major project is proposed. But examples of proactive civic engagement are beginning to emerge, write James Miner and Jessie Bauters.
| Oct 8, 2014
Massive ‘healthcare village’ in Nevada touted as world’s largest healthcare project
The $1.2 billion Union Village project is expected to create 12,000 permanent jobs when completed by 2024.
| Oct 8, 2014
First look: Woods Bagot unveils plans for new Christchurch Convention Center
The locally-inspired building is meant to serve as a symbol of the city's recovery from the earthquake of 2011.
| Oct 8, 2014
Denver transit project wins design-build Project of the Year honor
The Denver Union Station Transit Improvement Project is among 25 projects honored by the Design Build Institute of America for excellence in design-build project delivery.
| Oct 7, 2014
Analysis: Student loans will cost housing industry $83 billion in 2014
More than 410,000 single- and multifamily home sales will be lost in 2014 due to student loan debt, according to analysis by John Burns Real Estate Consulting.
Sponsored | | Oct 7, 2014
Boost efficiency with advanced framing
As architects continue to search for ways to improve building efficiencies, more and more are turning to advanced framing methods, particularly for multifamily and light commercial projects.
| Oct 7, 2014
Economic gains are rallying rents in Raleigh, N.C.
The greater Raleigh, N.C., market appears to be getting back on its feet again, which is good news for rental property owners.
| Oct 7, 2014
Structured, not stirred: The architecture of cocktails [infographic]
In this downloadable graphic, technologist Shaan Hurley dissects 37 cocktails and analyzes their architectural makeup.
| Oct 6, 2014
Moshe Safdie: Skyscrapers lead to erosion of urban connectivity
The 76-year-old architect sees skyscrapers and the privatization of public space to be the most problematic parts of modern city design.
