flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Contractor optimism improves as ABC’s Construction Backlog inches up in December

Market Data

Contractor optimism improves as ABC’s Construction Backlog inches up in December

ABC’s Construction Confidence Index readings for sales, profit margins, and staffing levels increased in December.


By AGC | January 13, 2021

Associated Builders and Contractors reported today that its Construction Backlog Indicator rebounded modestly to 7.3 months in December, an increase of 0.1 months from November’s reading, according to an ABC member survey conducted from Dec. 18 to Jan. 5. Backlog is 1.5 months lower than in December 2019.

 

 

 

ABC’s Construction Confidence Index readings for sales, profit margins, and staffing levels increased in December. The sales index climbed above the threshold of 50, indicating contractors expect to grow sales over the next six months. The index reading for profit margins remained below that threshold. The staffing level index increased to 56.3 but remains well below its December 2019 reading.

 

 

“While many contractors enter 2021 with significant trepidation, the most recent backlog and confidence readings suggest that the onset of vaccinations has generally led to more upbeat assessments regarding nonresidential construction’s future,” said ABC Chief Economist Anirban Basu. “Backlog is down substantially from its year-ago level and profit margins remain under pressure, yet many contractors expect to enjoy higher sales and to support more staff six months from now.

“The baseline expectation is that by the spring, the U.S. economy will blossom,” said Basu. “With many households sitting on mounds of savings and sustaining pent-up demand for many goods and services, the U.S. economy is set for rapid growth as it reopens more fully during mid to late 2021. While it will take time for that to fully translate into new construction projects, some that were postponed earlier during the pandemic are likely to come back to life over the next several months. That should help many contractors begin to rebuild backlog, and to eagerly await 2022.”

 

 

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12 to better reflect the survey period. CBI quantifies the previous month’s work under contract based on the latest financials available, while CCI measures contractors’ outlook for the next six months.

Related Stories

Market Data | Jun 21, 2017

Design billings maintain solid footing, strong momentum reflected in project inquiries/design contracts

Balanced growth results in billings gains in all sectors. 

Market Data | Jun 16, 2017

Residential construction was strong, but not enough, in 2016

The Joint Center for Housing Studies’ latest report expects minorities and millennials to account for the lion’s share of household formations through 2035.

Industry Research | Jun 15, 2017

Commercial Construction Index indicates high revenue and employment expectations for 2017

USG Corporation (USG) and U.S. Chamber of Commerce release survey results gauging confidence among industry leaders.

Market Data | Jun 2, 2017

Nonresidential construction spending falls in 13 of 16 segments in April

Nonresidential construction spending fell 1.7% in April 2017, totaling $696.3 billion on a seasonally adjusted, annualized basis, according to analysis of U.S. Census Bureau data released today by Associated Builders and Contractors.

Industry Research | May 25, 2017

Project labor agreement mandates inflate cost of construction 13%

Ohio schools built under government-mandated project labor agreements (PLAs) cost 13.12 percent more than schools that were bid and constructed through fair and open competition.

Market Data | May 24, 2017

Design billings increasing entering height of construction season

All regions report positive business conditions.

Market Data | May 24, 2017

The top franchise companies in the construction pipeline

3 franchise companies comprise 65% of all rooms in the Total Pipeline.

Industry Research | May 24, 2017

These buildings paid the highest property taxes in 2016

Office buildings dominate the list, but a residential community climbed as high as number two on the list.

Market Data | May 16, 2017

Construction firms add 5,000 jobs in April

Unemployment down to 4.4%; Specialty trade jobs dip slightly.

Multifamily Housing | May 10, 2017

May 2017 National Apartment Report

Median one-bedroom rent rose to $1,012  in April, the highest it has been since January.

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