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
Industrial Facilities | Aug 28, 2024
UK-based tire company plans to build the first carbon-neutral tire factory in the U.S.
ENSO, a U.K.-based company that makes tires for electric vehicles, has announced plans to build the first carbon-neutral tire factory in the U.S. The $500 million ENSO technology campus will be powered entirely by renewable energy. The first-of-its-kind tire factory aims to be carbon neutral without purchased offsets, using carbon-neutral raw materials and building materials.
Building Technology | Aug 23, 2024
Top-down construction: Streamlining the building process | BD+C
Learn why top-down construction is becoming popular again for urban projects and how it can benefit your construction process in this comprehensive blog.
Airports | Aug 22, 2024
Portland opens $2 billion mass timber expansion and renovation to its international airport
This month, the Portland International Airport (PDX) main terminal expansion opened to passengers. Designed by ZGF for the Port of Portland, the 1 million-sf project doubles the capacity of PDX and enables the airport to welcome 35 million passengers per year by 2045.
Adaptive Reuse | Aug 22, 2024
6 key fire and life safety considerations for office-to-residential conversions
Office-to-residential conversions may be fraught with fire and life safety challenges, from egress requirements to fire protection system gaps. Here are six important considerations to consider.
Contractors | Aug 22, 2024
Growing a $250 million business by focusing on preconstruction, with Wes Palmisano
One of the most critical aspects of successfully growing a construction company is the often-overlooked preconstruction phase.
Resiliency | Aug 22, 2024
Austin area evacuation center will double as events venue
A new 45,000 sf FEMA-operated evacuation shelter in the Greater Austin metropolitan area will begin construction this fall. The center will be available to house people in the event of a disaster such as a major hurricane and double as an events venue when not needed for emergency shelter.
Contractors | Aug 22, 2024
Why all construction business problems are people problems, with Eric Anderton
In the chaotic construction world where systematization is not a norm, it’s safe to say that people’s problems remain the biggest main challenge.
Contractors | Aug 21, 2024
The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of July 2024
Associated Builders and Contractors reported today that its Construction Backlog Indicator held steady at 8.4 months in July, according to an ABC member survey conducted July 22 to Aug. 6. The reading is down 0.9 months from July 2023.
Cultural Facilities | Aug 21, 2024
Baltimore’s National Aquarium opens 10,000-sf floating wetland that mimics the harbor’s original tidal marsh habitat
The National Aquarium in Baltimore has opened the National Aquarium Harbor Wetland, a 10,000-sf floating wetland that mimics the Inner Harbor’s original Chesapeake Bay tidal marsh habitat. Located between Piers 3 and 4 on Baltimore’s Inner Harbor, the $14 million project features more than 32,000 native shrubs and marsh grasses.
Mixed-Use | Aug 21, 2024
Adaptive reuse of a Sears store becomes luxury mixed-use housing
6 Corners Lofts at 4714 W Irving Park Road, Chicago, Ill., opened in March of 2024 as a 394,000-sf adaptive reuse project born out of a former Sears store.
