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 11, 2011
Blockbuster remodel transforms Omaha video store into a bank
A former Hollywood Video store in Omaha, Neb., was renovated and repurposed as the SAC Federal Credit Union, Ames Branch. Architects at Leo A Daly transformed the outdated 5,000-sf retail space into a modern facility by wrapping the exterior in poplar siding and adding a new glass storefront that floods the interior with natural light.
| Mar 11, 2011
Historic McKim Mead White facility restored at Columbia University
Faculty House, a 1923 McKim Mead White building on Columbia University’s East Campus, could no longer support the school’s needs, so the historic 38,000-sf building was transformed into a modern faculty dining room, graduate student meeting center, and event space for visiting lecturers, large banquets, and alumni organizations.
| Mar 11, 2011
Mixed-income retirement community in Maryland based on holistic care
The Green House Residences at Stadium Place in Waverly, Md., is a five-story, 40,600-sf, mixed-income retirement community based on a holistic continuum of care concept developed by Dr. Bill Thomas. Each of the four residential floors houses a self-contained home for 12 residents that includes 12 bedrooms/baths organized around a common living/social area called the “hearth,” which includes a kitchen, living room with fireplace, and dining area.
| Mar 11, 2011
Oregon childhood center designed at child-friendly scale
Design of the Early Childhood Center at Mt. Hood Community College in Gresham, Ore., focused on a achieving a child-friendly scale and providing outdoor learning environments.
| Mar 11, 2011
Guests can check out hotel’s urban loft design, music selection
MODO, Advaya Hospitality’s affordable new lifestyle hotel brand, will have an urban Bauhaus loft design and target design-, music-, and tech-savvy guest who will have access to thousands of tracks in vinyl, CD, and MP3 formats through a partnership with Downtown Music. Guest can create their own playlists, and each guest room will feature iPod docks and large flat-screen TVs.
| Mar 11, 2011
Construction of helicopter hangars in South Carolina gets off the ground
Construction is under way on a $26 million aviation support facility for South Carolina National Guard helicopters. Hendrick Construction, the project’s Charlotte, N.C.-based GC, is building the 111,000-sf Donaldson Hangar facility on the 30-acre South Carolina Technology & Aviation Center, Greenville.
| Mar 11, 2011
Texas A&M mixed-use community will focus on green living
HOK, Realty Appreciation, and Texas A&M University are working on the Urban Living Laboratory, a 1.2-million-sf mixed-use project owned by the university. The five-phase, live-work-play project will include offices, retail, multifamily apartments, and two hotels.
| Mar 11, 2011
Chicago office building will serve tenants and historic church
The Alter Group is partnering with White Oak Realty Partners to develop a 490,000-sf high-performance office building in Chicago’s West Loop. The tower will be located on land owned by Old St. Patrick’s Church (a neighborhood landmark that survived the Chicago Fire of 1871) that’s currently being used as a parking lot.
| Mar 11, 2011
Community sports center in Nashville features NCAA-grade training facility
A multisport community facility in Nashville featuring a training facility that will meet NCAA Division I standards is being constructed by St. Louis-based Clayco and Chicago-based Pinnacle.
| Mar 11, 2011
Slam dunk for the University of Nebraska’s basketball arena
The University of Nebraska men’s and women’s basketball programs will have a new home beginning in 2013. Designed by the DLR Group, the $344 million West Haymarket Civic Arena in Lincoln, Neb., will have 16,000 seats, suites, club amenities, loge, dedicated locker rooms, training rooms, and support space for game operations.
