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
| Jan 29, 2013
Tutor Perini Corp. to Implement Textura Prequalification Management Companywide
Rollout across the Tutor Perini organization will enhance the subcontractor prequalification experience and enable a standardized process in support of the contractor default insurance program.
| Jan 22, 2013
Midwestern Construction Company Acquires Local Architecture Firm
St. Charles, Ill.-based design/build and construction firm acquires architecture firm.
| Jan 16, 2013
2013 40 Under 40 application process now open
Building Design+Construction's 40 Under 40 is open to AEC professionals from around the globe.
| Jan 15, 2013
Hill International selected as PM for Secon Nile Towers in Cairo
The Secon Nile Towers will feature two 23-story buildings: one five-star hotel tower and one residential and retail tower.
| Jan 10, 2013
Guide predicts strongest, weakest AEC markets for 2013
2013 Guide to U.S. AEC markets touts apartments, natural gas, senior housing and transmission and distribution.
| Jan 8, 2013
PC Construction names McCarthy President/CEO
McCarthy, who joined PC Construction in 1998 and currently serves as executive vice president, will become a member of the employee-owned company’s board of directors and a trustee of the employee stock ownership plan.
| Jan 3, 2013
Answered prayers
A bold renovation enables a small church to expand its mission on a grand scale.
| Jan 2, 2013
M&A activity at U.S. AEC firms up slightly
Total mergers and acquisitions in the AEC industry hit 171 in 2012, up slight from the 169 deals in 2011.
