flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Construction backlog indicator reaches all-time high in second quarter

Construction backlog indicator reaches all-time high in second quarter

"The long-awaited brisk nonresidential construction recovery may be upon us," said ABC Chief Economist Anirban Basu.


By Associated Builders and Contractors | August 20, 2014
Associated Builders and Contractors (ABC) Construction Backlog Indicator (CBI) reached an all-time high in the second quarter of 2014. CBI improved 5.4 percent following a 2.8 percent decline in the first quarter and currently stands at 8.5; up 3.6 percent on a year-over-year basis.
 
"The long-awaited brisk nonresidential construction recovery may be upon us," said ABC Chief Economist Anirban Basu. "Industry momentum was snuffed out by a seemingly endless winter, but the pace of industry recovery has been accelerating ever since. Backlog gains were nearly ubiquitous during the second quarter, with gains registered in every industry segment, in nearly all geographies and for firms of virtually all sizes.
 
"Further increases in construction backlog are likely given remarkably accommodative Federal Reserve policy even after five completed years of economic expansion, accelerated job growth and rising consumer confidence," said Basu. "The nation has added roughly 2.5 million jobs over the past year, consistent with growing demand for space. Financing conditions have also improved, which should set the stage for more rapid nonresidential construction recovery in a number of key construction segments, including office (classified within commercial/institutional) and manufacturing (classified within heavy industrial) segments."
 
 

Regional Highlights

  • Backlog in the South has fallen just below 9 months, down from 9.14 months in the first quarter and from 9.05 months a year ago. 
  • The Northeast's backlog now stands at  9.36 months, which is still slightly below where it was this time last year (9.41 months), but an improvement from 8.34 months in the first quarter. 
  • Backlog in the Middle States is now at 6.42 months compared to 6.32 months a year ago and 6.16 months in the first quarter of 2014.
  • The West's backlog stands at 9.22 months, up significantly from 8.21 months on a year-over-year basis and 8.09 months from last quarter. 

 

Industry Highlights

  • The commercial and institutional segment is just shy of its longest backlog recorded in CBI history at 8.90 months, up from 8.66 months one year ago and 8.44 months in the first quarter.
  • Backlog in the heavy industrial segment gained nearly a full month from the first quarter and now stands at 6 months, up from 5.08 months in the first quarter and 5.8 months from the second quarter of 2013.
  • Backlog in the infrastructure segment improved to 8.61 months from 7.93 months in the first quarter but is down from 8.96 on a year-over-year basis.

 

Highlights by Company Size

  • The smallest firms, those with revenue less than $30 million, saw their backlog increase to 7.59 months, up from 7.16 months in the first quarter and 6.96 from the second quarter of 2013.
  • Backlog from firms with $30-$50 million in revenue increased to 8.97 months, a significant increase from 7.58 months year over year and from 7.9 months from last quarter.
  • Firms with revenue between $50-$100 million now have the longest backlog at 11.3 months, up from 10.69 months in the first quarter but down from 11.57 months a year ago.
  • The largest firms, those with revenue over $100 million, saw their backlog decrease to 11.16 months from 11.7 months last quarter and 12.25 months a year ago.

Related Stories

Market Data | Apr 20, 2022

Pace of demand for design services rapidly accelerates

Demand for design services in March expanded sharply from February according to a new report today from The American Institute of Architects (AIA).  

Multifamily Housing | Apr 20, 2022

A Frankfurt tower gives residents greenery-framed views

In Frankfurt, Germany, the 27-floor EDEN tower boasts an exterior “living wall system”: 186,000 plants that cover about 20 percent of the building’s facade.

AEC Tech | Apr 19, 2022

VDC maturity and the key to driving better, more predictable outcomes

While more stakeholders across the AEC value chain embrace the concept of virtual design and construction, what is driving the vastly different results that organizations achieve? The answer lies within an assessment of VDC maturity.

Healthcare Facilities | Apr 19, 2022

6 trends to watch in healthcare design

As the healthcare landscape continues to evolve, IMEG’s healthcare leaders from across the country are seeing several emerging trends that are poised to have wide-ranging impacts on facility design and construction. Following are six of the trends and strategies they expect to become more commonplace in 2022 and the years to come. 

Energy-Efficient Design | Apr 19, 2022

A prefab second skin can make old apartments net zero

A German startup is offering a new way for old buildings to potentially reach net-zero status: adding a prefabricated second skin.

Concrete Technology | Apr 19, 2022

SGH’s Applied Science & Research Center achieves ISO 17025 accreditation for concrete testing procedures

Simpson Gumpertz & Heger’s (SGH) Applied Science & Research Center recently received ISO/IEC17025 accreditation from the American Association for Laboratory Accreditation (A2LA) for several concrete testing methods.

Senior Living Design | Apr 19, 2022

Affordable housing for L.A. veterans and low-income seniors built on former parking lot site

The Howard and Irene Levine Senior Community, designed by KFA Architecture for Mercy Housing of California, provides badly needed housing for Los Angeles veterans and low-income seniors

Sponsored | BD+C University Course | Apr 19, 2022

Multi-story building systems and selection criteria

This course outlines the attributes, functions, benefits, limits, and acoustic qualities of composite deck slabs. It reviews the three primary types of composite systems that represent the full range of long-span composite floor systems and examines the criteria for their selection, design, and engineering.

Building Team | Apr 18, 2022

Shive-Hattery Acquires WSM Architects

Shive-Hattery announces that it has acquired WSM Architects, Inc., a 13-person architecture firm in Tucson, Arizona. 

University Buildings | Apr 18, 2022

SmithGroup to design new Univ. of Colorado Denver engineering, design, computing building

The University of Colorado Denver selected SmithGroup to design a new engineering, design, and computing building that will serve as anchor of new downtown innovation district.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021

Â