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
| Mar 28, 2014
Crazy commuting: British artist wants to construct 300-foot water slide on city street
Bristol-based artist Luke Jerram hopes that the temporary installation, once funded, will encourage the public to think about "how we want to use the city, and what sort of future we want to see.”
| Mar 27, 2014
Develop strategic thinkers throughout your firm
In study after study, strategic thinkers are found to be among the most highly effective leaders. But is there a way to encourage routine strategic thinking throughout an organization?
| Mar 27, 2014
16 kitchen and bath design trends for 2014
Work on multifamily housing projects? Here are the top kitchen and bath design trends, according to a survey of more than 420 kitchen and bath designers.
| Mar 26, 2014
A sales and service showcase
High Plains Equipment, a Case IH dealership in Devils Lake, N.D., constructs a larger facility to better serve its customers.
| Mar 26, 2014
Free transit for everyone! Then again, maybe not
An interesting experiment is taking place in Tallinn, the capital of Estonia, where, for the last year or so, its 430,000 residents have been able to ride the city’s transit lines practically for free. City officials hope to pump up ridership by 20%, cut carbon emissions, and give low-income Tallinnites greater access to job opportunities. But is it working?
| Mar 26, 2014
Callison launches sustainable design tool with 84 proven strategies
Hybrid ventilation, nighttime cooling, and fuel cell technology are among the dozens of sustainable design techniques profiled by Callison on its new website, Matrix.Callison.com.
| Mar 26, 2014
Zaha Hadid's glimmering 'cultural hub of Seoul' opens with fashion, flair [slideshow]
The new space, the Dongdaemun Design Plaza, is a blend of park and cultural spaces meant for the public to enjoy.
| Mar 26, 2014
First look: Lockheed Martin opens Advanced Materials and Thermal Sciences Center in Palo Alto
The facility will host advanced R&D in emerging technology areas like 3D printing, energetics, thermal sciences, and nanotechnology.
| Mar 25, 2014
Sydney breaks ground on its version of the High Line elevated park [slideshow]
The 500-meter-long park will feature bike paths, study pods, and outdoor workspaces.
Sponsored | | Mar 25, 2014
Johns Hopkins chooses SLENDERWALL for a critical medical facility reconstruction
After decades of wear, the hand-laid brick envelope of the Johns Hopkins nine-story Nelson/Harvey inpatient facility began failing. SLENDERWALL met the requirements for renovation.