flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Construction contractor confidence remains steady

Market Data

Construction contractor confidence remains steady

70% of contractors expect their sales to increase over the first half of 2020.


By ABC | February 21, 2020

Confidence among U.S. construction industry leaders held steady in December 2019 after surging in November, according to the Associated Builders and Contractors Construction Confidence Index released today. The average American contractor entered 2020 with confidence: Sales expectations, profit margins and staffing levels all remained above the growth expectations threshold, indicating a strong start to 2020. 

70% of contractors expect their sales to increase over the first half of 2020, while nearly the same percentage of contractors expect to increase their staffing levels. Nearly half of contractors expect their profit margins to increase, while just 12% expect them to decline over the next two quarters.

  • The CCI for sales expectations decreased from 69.5 to 68.8 in December.
  • The CCI for profit margin expectations decreased from 61.3 to 60.
  • The CCI for staffing levels increased from 66.9 to 67.2

“The U.S. economy is humming, and among the principal beneficiaries of that performance are nonresidential contractors,” said ABC Chief Economist Anirban Basu. “Sales expectations, despite inching a bit lower in December, remain especially robust, with seven in 10 survey respondents expecting sales increases and fewer than one in 10 expecting their sales to decline during the first half of 2020. Recently released data regarding construction spending and hiring in the U.S. strongly suggest that this confidence is justified. ABC’s Construction Backlog Indicator dipped in December but still indicates that contractors remain busy.

“Despite broad optimism regarding sales prospects, contractors’ expectations are somewhat more subdued regarding profit margins,” said Basu. “Though materials prices have been generally stable and energy prices have declined recently, workers are becoming more expensive, both in terms of wages and benefits. Shortfalls in the skilled trades are apparent throughout the nation, especially in the booming markets of the South and West. With U.S. unemployment hovering near a 50-year low, many construction workers may find opportunities in other segments, including logistics, and retirement rates remain elevated. All of this translates into ongoing increases in compensation costs and a squeeze on margins.”

CCI is a diffusion index. Readings above 50 indicate growth, while readings below 50 are unfavorable. 

 
 

 

 

 

 

Related Stories

Market Data | Feb 20, 2020

U.S. multifamily market gains despite seasonal lull

The economy’s steady growth buoys prospects for continued strong performance.

Market Data | Feb 19, 2020

Architecture billings continue growth into 2020

Demand for design services increases across all building sectors.

Market Data | Feb 5, 2020

Construction employment increases in 211 out of 358 metro areas from December 2018 to 2019

Dallas-Plano-Irving, Texas and Kansas City have largest gains; New York City and Fairbanks, Alaska lag the most as labor shortages likely kept firms in many areas from adding even more workers.

Market Data | Feb 4, 2020

Construction spending dips in December as nonresidential losses offset housing pickup

Homebuilding strengthens but infrastructure and other nonresidential spending fades in recent months, reversing pattern in early 2019.

Market Data | Feb 4, 2020

IMEG Corp. acquires Clark Engineering

Founded in 1938 in Minneapolis, Clark Engineering has an extensive history of public and private project experience.

Market Data | Jan 30, 2020

U.S. economy expands 2.1% in 4th quarter

Investment in structures contracts.

Market Data | Jan 30, 2020

US construction & real estate industry sees a drop of 30.4% in deal activity in December 2019

A total of 48 deals worth $505.11m were announced in December 2019.

Market Data | Jan 29, 2020

Navigant research report finds global wind capacity value is expected to increase tenfold over the next decade

Wind power is being developed in more countries as well as offshore and onshore.

Market Data | Jan 28, 2020

What eight leading economists predict for nonresidential construction in 2020 and 2021

Public safety, education, and healthcare highlight a market that is entering growth-slowdown mode, but no downturn is projected, according to AIA's latest Consensus Construction Forecast panel.

Market Data | Jan 28, 2020

Los Angeles has the largest hotel construction pipeline in the United States

Los Angeles will have a growth rate of 2.5% with 19 new hotels/2,589 rooms opening.

boombox1
boombox2
native1

More In Category


Contractors

Nonresidential construction spending decreased 0.2% in June

National nonresidential construction spending declined 0.2% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.21 trillion. Nonresidential construction has expanded 5.3% from a year ago.



Construction Costs

Data center construction costs for 2024

Gordian’s data features more than 100 building models, including computer data centers. These localized models allow architects, engineers, and other preconstruction professionals to quickly and accurately create conceptual estimates for future builds. This table shows a five-year view of costs per square foot for one-story computer data centers. 

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