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

Sustainable Design and Construction | Oct 10, 2024

Northglenn, a Denver suburb, opens a net zero, all-electric city hall with a mass timber structure

Northglenn, Colo., a Denver suburb, has opened the new Northglenn City Hall—a net zero, fully electric building with a mass timber structure. The 32,600-sf, $33.7 million building houses 60 city staffers. Designed by Anderson Mason Dale Architects, Northglenn City Hall is set to become the first municipal building in Colorado, and one of the first in the country, to achieve the Core certification: a green building rating system overseen by the International Living Future Institute.

Contractors | Oct 10, 2024

How to get your construction team engaged and on board with new processes

Discover practical strategies to boost employee engagement and create a collaborative environment where your team feels valued and motivated to contribute to your company’s vision.

3D Printing | Oct 9, 2024

3D-printed construction milestones take shape in Tennessee and Texas

Two notable 3D-printed projects mark milestones in the new construction technique of “printing” structures with specialized concrete. In Athens, Tennessee, Walmart hired Alquist 3D to build a 20-foot-high store expansion, one of the largest freestanding 3D-printed commercial concrete structures in the U.S. In Marfa, Texas, the world’s first 3D-printed hotel is under construction at an existing hotel and campground site.

University Buildings | Oct 9, 2024

Des Moines University Medicine and Health Sciences opens a new 88-acre campus

Des Moines University Medicine and Health Sciences has opened a new campus spanning 88 acres, over three times larger than its previous location. Designed by RDG Planning & Design and built by Turner Construction, the $260 million campus features technology-rich, flexible educational spaces that promote innovative teaching methods, expand research activity, and enhance clinical services. The campus includes four buildings connected with elevated pathways and totaling 382,000 sf. 

Student Housing | Oct 9, 2024

University of Maryland begins work on $148 million graduate student housing development

The University of Maryland, in partnership with Campus Apartments and Mosaic Development Partners, has broken ground on a $148.75 million graduate student housing project on the university’s flagship College Park campus. The project will add 741 beds in 465 fully furnished apartments.

AEC Tech Innovation | Oct 8, 2024

New ABC technology report examines how AI can enhance efficiency, innovation

The latest annual technology report from Associated Builders and Contractors delves into how artificial intelligence can enhance efficiency and innovation in the construction sector. The report includes a resource guide, a case study, insight papers, and an essay concerning applied uses for AI planning, development, and execution. 

Healthcare Facilities | Oct 8, 2024

Herzog & de Meuron completes Switzerland’s largest children’s hospital

The new University Children’s Hospital Zurich features 114 rooftop patient rooms designed like wooden cottages with their own roofs. The project also includes a research and teaching facility.

Mixed-Use | Oct 7, 2024

New mixed-use tower by Studio Gang completes first phase of San Francisco waterfront redevelopment

Construction was recently completed on Verde, a new mixed-use tower along the San Francisco waterfront, marking the end of the first phase of the Mission Rock development. Verde is the fourth and final building of phase one of the 28-acre project that will be constructed in several phases guided by design principles developed by a design cohort led by Studio Gang.

Brick and Masonry | Oct 7, 2024

A journey through masonry reclad litigation

This blog post by Walter P Moore's Mallory Buckley, RRO, PE, BECxP + CxA+BE, and Bob Hancock, MBA, JD, of Munsch Hardt Kopf & Harr PC, explains the importance of documentation, correspondence between parties, and supporting the claims for a Plaintiff-party, while facilitating continuous use of the facility, on construction litigation projects.

University Buildings | Oct 4, 2024

Renovations are raising higher education campuses to modern standards

AEC higher ed Giants report working on a variety of building types, from performing arts centers and libraries to business schools. Hybrid learning is seemingly here to stay. And where possible, these projects address wellness and mental health concerns.

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