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
Contractors | Jul 4, 2016
A new report links infrastructure investment to commercial real estate expansion
Competitiveness and economic development are at stake for cities, says Transwestern.
Contractors | Jun 30, 2016
Chicago contractor found guilty of fraud on city’s requirement on minority-owned businesses
Alleged to have been sham business in bid to win city public works contract.
AEC Tech | Jun 27, 2016
If ‘only the paranoid survive,’ what does it take to thrive?
“Sooner or later, something fundamental in your business world will change.” The late Andrew Grove (1936-2016), Co-founder of tech giant Intel Corp., lived by these words.
Contractors | Jun 21, 2016
Bigness counts when it comes to construction backlogs
Large companies that can attract talent are better able to commit to more work, according to a national trade group for builders and contractors.
Building Materials | Jun 16, 2016
ABC: Construction material prices rise again in May
Nonresidential construction price gains were largely driven by iron and steel prices and steel mill product prices.
Movers+Shapers | Jun 14, 2016
VERTICAL INTEGRATOR: How Brooklyn’s Alloy LLC evolved from an architecture firm into a full-fledged development company
Led by an ambitious President and a CEO with deep pockets, Alloy LLC's six entities control the entire development process: real estate development, design, construction, brokerage, property management, and community development.
Building Team | Jun 13, 2016
BD+C launches Women in Design+Construction Conference
Inaugural 2.5-day event will convene 125+ leading AEC women in Dana Point, Calif., November 9-11, for professional development, networking, and career training.
Market Data | Jun 7, 2016
Global construction disputes took longer to resolve in 2015
The good news: the length and value of disputes in the U.S. fell last year, according to latest Arcadis report.
Market Data | Jun 3, 2016
JLL report: Retail renovation drives construction growth in 2016
Retail construction projects were up nearly 25% year-over-year, and the industrial and office construction sectors fared well, too. Economic uncertainty looms over everything, however.
Market Data | Jun 2, 2016
ABC: Nonresidential construction spending down in April
Lower building material prices, a sluggish U.S. economy, and hesitation among private developers all factor into the 2.1% drop.