flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Weather to blame for decline in Construction Backlog Indicator

Contractors

Weather to blame for decline in Construction Backlog Indicator

Despite the backlog decline, continued job growth, low fuel prices, and wage gains are expected to lead to an increase in consumer spending.


By BD+C Staff | June 2, 2015
Weather to blame for decline in Construction Backlog Indicator

The Construction Backlog Indicator fell by 3.2% during the first three months of 2015. Image: Pixabay

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

Market Data | Mar 1, 2016

ABC: Nonresidential spending regains momentum in January

Nonresidential construction spending expanded 2.5% on a monthly basis and 12.3% on a yearly basis, totaling $701.9 billion. Spending increased in January in 10 of 16 nonresidential construction sectors.  

Market Data | Mar 1, 2016

Leopardo releases 2016 Construction Economics Report

This year’s report shows that spending in 2015 reached the highest level since the Great Recession. Total spending on U.S. construction grew 10.5% to $1.1 trillion, the largest year-over-year gain since 2007. 

Market Data | Feb 26, 2016

JLL upbeat about construction through 2016

Its latest report cautions about ongoing cost increases related to finding skilled laborers.

Contractors | Feb 25, 2016

Huntsville’s Botanical Garden starts work on new Guest Welcome Center

The 30,000-sf facility will feature three rental spaces of varying sizes.

Architects | Feb 24, 2016

Is the booming freelance economy a threat to AEC firms?

By shifting the work (and revenue) to freelancers, “platform capitalism” startups have taken considerable market share from traditional businesses.

Religious Facilities | Feb 22, 2016

For the first time in Bulgaria, a temple’s construction raises a metal dome

The church is 2½ times larger than the basilica in Ukraine it references.

Market Data | Feb 10, 2016

Nonresidential building starts and spending should see solid gains in 2016: Gilbane report

But finding skilled workers continues to be a problem and could inflate a project's costs.

Contractors | Feb 2, 2016

ABC: Nonresidential spending falls again in December

For a second consecutive month, 12 of 16 nonresidential subsectors experienced spending decreases on a monthly basis.

Contractors | Feb 1, 2016

ABC: Tepid GDP growth a sign construction spending may sputter

Though the economy did not have a strong ending to 2015, the data does not suggest that nonresidential construction spending is set to decline.

Contractors | Jan 15, 2016

Controlling interest in Clark Construction sold to employee group

The death of its founder last year set the wheels of this transition in motion. 

boombox1
boombox2
native1

More In Category


Museums

The Tampa Museum of Art will soon undergo a $110 million expansion

In Tampa, Fla., the Tampa Museum of Art will soon undergo a 77,904-sf Centennial Expansion project. The museum plans to reach its $110 million fundraising goal by late 2024 or early 2025 and then break ground. Designed by Weiss/Manfredi, and with construction manager The Beck Group, the expansion will redefine the museum’s surrounding site.


Reconstruction & Renovation

Movement to protect historic buildings raises sharp criticism

While the movement to preserve historic buildings has widespread support, it also has some sharp critics with well-funded opposition groups springing up in recent years. Some opponents are linked to the Stand Together Foundation, founded and bankrolled by the Koch family’s conservative philanthropic organization, according to a column in Governing magazine.


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