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

| Dec 20, 2013

Must see for the holidays: Architects re-create iconic structures using gingerbread

Gensler, PBK, Page Sutherland Page, and Kirksey were among the firms to compete in the 5th Annual Gingerbread Build-Off.

| Dec 20, 2013

Can energy hogs still be considered efficient buildings? Yes, say engineers at Buro Happold

A new tool from the engineering firm Buro Happold takes into account both energy and economic performance of buildings for a true measure of efficiency. 

| Dec 20, 2013

Ten spectacular contemporary churches [slideshow]

German building-information provider Emporis compiles a photographic tour of inspirational spaces.

| Dec 19, 2013

NRDC report relates green infrastructure investments to commercial property value [Infographic]

The Natural Resources Defense Council has released The Green Edge: How Commercial Property Investment in Green Infrastructure Creates Value -- a first-ever illustrative and well-documented report that helps demonstrate the value of green infrastructure. It draws from available published material to capture the multitude of tangible, monetizable non-water quality and water quality benefits that green infrastructure investments (trees, rain gardens, and porous pavement, rainwater harvesting cisterns, bioswales, etc.) can unlock for the commercial real estate sector, including commercial property owners and their tenants.

| Dec 19, 2013

Mastering the art of crowd control and visitor flow in interpretive facilities

To say that visitor facility planning and design is challenging is an understatement. There are many factors that determine the success of a facility. Unfortunately, visitor flow, the way people move and how the facility accommodates those movements, isn’t always specifically considered.

| Dec 19, 2013

Urban populations, climate change demand resilient design: Report

With over fifty percent of the population already living in urban areas, cities must grapple with the potentially catastrophic effects of climate change (think: Superstorm Sandy in New York). In a new report, Jones Lang LaSalle has identified steps cities can take to make their infrastructure more resilient to changing climate conditions.

| Dec 18, 2013

Architecture Billings Index takes step back in November

After six months of steadily increasing demand for design services, the Architecture Billings Index paused in November, dipping below 50 for just the second time in 2013. 

| Dec 17, 2013

NREL, National Trust offer energy roadmap for small buildings and small portfolios

The National Renewable Energy Laboratory and the National Trust for Historic Preservation’s Preservation Green Lab initiative have released the report “Industry Research and Recommendations for Small Buildings and Small Portfolios,” analyzing untapped opportunities in energy savings.

| Dec 17, 2013

Nation's largest net-zero K-12 school among winners of 2013 Best of Green Schools award

The Lady Bird Johnson Middle School in Irving, Texas, was named a winner of USGBC's annual award, along with nine other schools, individuals and communities working toward the common goal of healthy, high-performing learning places.

| Dec 17, 2013

IBM's five tech-driven innovation predictions for the next five years [infographics]

Smart classrooms, DNA-based medical care, and wired cities are among the technology-related innovations identified by IBM researchers for the company's 5 in 5 report. 

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