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
| Jun 25, 2013
DC commission approves Gehry's redesign for Eisenhower memorial
Frank Gehry's updated for a new Dwight D. Eisenhower memorial in Washington, D.C., has been approved by the Eisenhower Memorial Commission, reports the Washington Post. The commission voted unanimously to approve the $110 million project, which has been gestating for 14 years.
| Jun 21, 2013
AIA report: Greater collaboration, stiffer competition among top trends in architecture
A new 34-page report from AIA highlights key trends in the architecture marketplace and their impact on business and growth.
| Jun 20, 2013
Virtual meetings enhance design of University at Buffalo Medical School
HOK designers in New York, St. Louis and Atlanta are using virtual meetings with their University at Buffalo (UB) client team to improve the design process for UB’s new School of Medicine and Biomedical Sciences on the Buffalo Niagara Medical Campus.
| Jun 19, 2013
Architects upbeat about the construction market
Following the first reversal into negative territory in ten months in April, AIA's Architecture Billings Index bounced back in May, reaching 52.9.
| Jun 19, 2013
NSF Sustainability begins verifying EPDs that can be used for LEED V4
NSF Sustainability has verified Environmental Product Declarations (EPDs) for nylon carpet styles and colors manufactured by Mannington Commercial and for J+J Flooring Group’s Kinetex® flooring product and Invision brand modular styles that use eKo® backing.
| Jun 19, 2013
Florida is latest battleground over LEED standards centered on certified wood
A nationwide battle over forest certification standards continues to be played out nationally and in Florida with legislation passed this month.
| Jun 19, 2013
Construction site safety improved in 2011
On-the-job construction fatalities dropped from 802 in 2010 to 781 in 2011, and recordable injuries fell from 4.7 per 100 workers in 2008 to 3.9 per 100 in 2011, according to data from the Bureau of Labor Statistics.
| Jun 19, 2013
New York City considers new construction standards for hospitals, multifamily buildings
Mayor Michael Bloomberg’s administration has proposed new building codes for hospitals and multifamily dwellings in New York City to help them be more resilient in the event of severe weather resulting from climate change.
| Jun 18, 2013
Report: HVAC occupancy sensors could slash building energy demand by 18%
Researchers at the DOE's Pacific Northwest National Laboratory conclude that significant energy savings can be achieved by varying ventilation levels based on the number of people in a given space.
| Jun 18, 2013
Turner report: Activity in urban markets driving construction cost increases
Turner Construction Company announced that the Second Quarter 2013 Turner Building Cost Index – which measures costs in the non-residential building construction market in the United States – has increased to a value of 859. This reflects a 1.18% increase from the First Quarter 2013 and 4.00% yearly increase from the Second Quarter 2012.
