Following an intense winter season, the Associated Builders and Contractors' Construction Backlog Indicator (CBI) revealed a 3.2% decline during the first quarter of 2015.
According to ABC, construction firms across the country reported a revenue-weighted average CBI of 8.4 months, 0.3 months below the final quarter of 2014.
The Northeast saw its backlog decline by 10.2%, a change of 1.04 months from the fourth quarter of last year. The Middle States reported a 0.7% decline to 0.05 months in construction backlog and the West experienced a 25.3% drop or 1.88 months. The South was the only region to report an increase in construction backlog as it rose 5.9% or 0.55 months.
"Weather and a myriad of other factors always make the first quarter CBI difficult to interpret," said ABC Chief Economist Anirban Basu. "A brutal winter may have postponed project-related work, including the signing of contracts. The first quarters of 2012 and 2014 also experienced CBI declines that effectively were reversed during the ensuing second quarters."
Additionally, sharp reductions in oilfield investment affected companies in the Middle States while the West Coast port slowdown impacted firms on the western side of the country. However, the backlog should re-establish an upward trend as the year's warmer months approach and ports return to normal.
Despite the backlog decline, continued job growth, low fuel prices, and wage gains are expected to lead to an increase in consumer spending.
Related Stories
| Oct 2, 2012
Bernards working on project at L.A. White Memorial Medical Center
The new facility is a $15-million, 41,000-sf concrete structure which includes three stories of medical office space atop a three-level parking garage.
| Oct 1, 2012
Tyco completes separation process, now largest pure-play fire protection and security business
Tyco Integrated Security focused on delivering security solutions to commercial businesses.
| Sep 28, 2012
Seattle is home to first LEED-certified modular radiation center
By using modular construction and strategic site design, RAD Medical Systems built the first radiation center to receive LEED certification.
| Sep 26, 2012
EDITORIAL OPPORTUNITY – BD+C Greenbuild 2012 Issue
Your firm is invited to contribute to this special issue, which will be distributed at Greenbuild San Francisco, Nov. 14-16, 2012.
| Sep 24, 2012
Reed Construction completes Lafarge headquarters in Chicago
Reed Construction was contracted to complete the full third floor build-out which included the construction of new open area work space, private offices, four conference rooms with videoconferencing capabilities and an executive conference boardroom.
| Sep 24, 2012
Chicago Lakeside shortlisted for the Sustainia Award
The “Lakeside Idea” is about bridging a brownfield industrial past to a green lifestyle future, from steel mill to innovation mill.
| Sep 24, 2012
$3.8-million athletic field and track opens in Glen Head, N.Y.
The complex also includes a new, one-story, multi-purpose building that serves as the main entry port to the athletic facilities.
| Sep 21, 2012
AAMA and WDMA release updated review and forecast that predicts industry trends
Significant volume is expected to return to the entry and interior door market as new construction demand is expected to grow at double-digit rates, outpacing remodeling and replacement activity as the housing market recovers.
| Sep 20, 2012
Mid-box retail study shows lack of available sites in Chicago
Existing supply is tight everywhere and almost non-existent in the most attractive zones.
| Sep 20, 2012
Forrester begins construction of freestanding cancer center in Montgomery County, Md.
The new 51,000-square-foot building will include two linear accelerator vaults for radiation equipment.
