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
| Feb 22, 2013
Dutch team's 'bioconcrete' can heal itself
Two researchers from Delft Technical University in Holland have developed a self-healing cement that can stop microcracks from forming in concrete.
| Feb 22, 2013
Defense department report: Green design saves taxpayers money
An independent report on energy efficiency and sustainability standards used by the Pentagon for military construction affirms the value of LEED-certified high performing buildings to America’s military and U.S. taxpayers.
| Feb 22, 2013
Zaha Hadid to help plan new London-area airport hub
The Mayor of London has appointed Zaha Hadid Architects to help create a major new airport in southeastern England.
| Feb 21, 2013
Female construction executives launch professional organization for women in construction operations
Sarah Creighton and Holly Cindell of McCarthy Building Companies, Inc. of Newport Beach are among a group of pioneering women from Southern California construction, architecture and engineering companies to begin WiOPS—a new professional organization geared specifically toward women in construction operations.
| Feb 21, 2013
BD+C's 2011 White Paper: Zero and Net-Zero Energy Buildings + Homes
We submit our eighth White Paper on Sustainability in the hope that it will inspire architects, engineers, contractors, building owners, developers, building product manufacturers, environmentalists, policymakers, government officials, corporate executives, officeholders, and the public to foster the development of net-zero energy buildings and homes.
| Feb 21, 2013
BD+C's 2008 White Paper: Green Buildings + Climate Change
In this White Paper, we provide concrete ways in which AEC professionals can have a positive role in addressing climate change.
| Feb 21, 2013
Construction team chosen for world's tallest building in Jeddah, Saudi Arabia
Construction team chosen for world's tallest building in Jeddah, Saudi Arabia.
| Feb 19, 2013
Luxury multifamily project under way in Atlanta; 215 residences planned
Hines Multifamily is building @1377, a luxury complex comprising 215 "urban-style residences" in Atlanta's Brookhaven neighborhood.
| Feb 15, 2013
Could the student housing boom lead to a bubble?
Student housing has been one of the bright spots in the multifamily construction sector in recent years. But experts say there should be cause for concern for oversupply in the market.
