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
| May 19, 2014
Why e-commerce won't kill 'bricks and mortar' retail sector
Despite emerging structural challenges and newly-announced store closings, such as those of Radio Shack and Office Depot, the U.S. retail sector has continued on its solid recovery.
| May 16, 2014
BoA, USGBC to offer $25,000 grants for green affordable housing projects
The Affordable Green Neighborhoods Grant Program will offer 14 grants to developers of affordable housing in North America who are committed to building sustainable communities through the LEED for Neighborhood Development program.
| May 16, 2014
HED expands leadership in San Diego
Neville Willsmore, Thomas Christian join leadership team for Harley Ellis Devereaux.
| May 16, 2014
Toyo Ito leads petition to scrap Zaha Hadid's 2020 Olympic Stadium project
Ito and other Japanese architects cite excessive costs, massive size, and the project's potentially negative impact on surrounding public spaces as reasons for nixing Hadid's plan.
| May 15, 2014
Paints, coatings, and sealants: 10 new ways to seal the deal
Color-shifting finishes, dry-erase surfaces, and stain-blocking paints are highlighted in this round up of new offerings in paints, coatings, sealants, and finishes.
| May 15, 2014
Biking to work up by 60 percent, according to Census Bureau report
Many U.S. cities are seeing an increase in bicycle commuters, according to new a U.S. Census Bureau report. While bicyclists still account for just 0.6% of all commuters, some of the nation's largest cities have more than doubled their rates since 2000.
| May 15, 2014
'Virtually indestructible': Utah architect applies thin-shell dome concept for safer schools
At $94 a square foot and "virtually indestructible," some school districts in Utah are opting to build concrete dome schools in lieu of traditional structures.
| May 15, 2014
First look: 9/11 Memorial Museum opens to first-responders, survivors, 9/11 families [slideshow]
The 110,000-sf museum is filled with monumental artifacts from the tragedy and exhibits that honor the lives of every victim of the 2001 and 1993 attacks.
| May 14, 2014
New study shows employees aren't happier working in green buildings
People working in buildings certified under LEED’s green building standard appear no more satisfied with their workplace environments than those in conventional buildings, according to new research from the University of California, Berkeley, and the University of Nottingham.
| May 14, 2014
Construction growth looking up: Gilbane Spring 2014 Economic Report
Construction spending for 2014 should finish 6.6% higher than in 2013, with nonresidential work contributing substantially.