Associated Builders and Contractors reported today that its Construction Backlog Indicator fell to 7.8 months in March, according to an ABC member survey conducted from March 22 to April 5, a decrease of 0.4 months from both the February 2021 and March 2020 readings.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased in March. All three indices remain above the threshold of 50, indicating expectations of growth over the next six months.
“There are two countervailing forces influencing backlog,” said Basu. “On the one hand, design work on new projects declined during most of the pandemic. Some of this is attributable to the need to socially distance, risk aversion and the jarring effects of the crisis on commercial real estate. The result has been fewer projects presently available for bid, which is consistent with declining backlog.
“On the other hand, the surprisingly strong economic recovery has brought projects that seemed dead back to life,” said Basu. “The boom in e-commerce and other tech segments has also produced greater levels of demand for construction of fulfillment and data centers. The overall result is that backlog is roughly where it was six months ago. Given that contractors remain confident regarding sales, employment and profit margins over the balance of the year, the expectation is that more projects will enter the design phase, bidding opportunities are set to rise and at some point backlog will reestablish an upward trajectory.”
Click here for a short video from ABC’s chief economist to see what the latest survey data mean for the construction industry.
Related Stories
Market Data | Mar 22, 2021
Construction employment slips in 225 metros from January 2020 to January 2021
Rampant cancellations augur further declines ahead.
Market Data | Mar 18, 2021
Commercial Construction Contractors’ Outlook lifts on rising revenue expectations
Concerns about finding skilled workers, material costs, and steel tariffs linger.
Market Data | Mar 16, 2021
Construction employment in January lags pre-pandemic mark in 42 states
Canceled projects, supply-chain woes threaten future jobs.
Market Data | Mar 15, 2021
Rising materials prices and supply chain disruptions are hurting many construction firms
The same firms are already struggling to cope with pandemic impacts.
Market Data | Mar 11, 2021
Soaring materials costs, supply-chain problems, and project cancellations continue to impact construction industry
Costs and delayed deliveries of materials, parts, and supplies are vexing many contractors.
Market Data | Mar 8, 2021
Construction employment declines by 61,000 in February
Association officials urge congress and Biden administration to focus on new infrastructure funding.
Market Data | Mar 2, 2021
Construction spending rises in January as private nonresidential sector stages rare gain
Private nonresidential market shrinks 10% since January 2020 with declines in all 11 segments.
Market Data | Feb 24, 2021
2021 won’t be a growth year for construction spending, says latest JLL forecast
Predicts second-half improvement toward normalization next year.
Market Data | Feb 23, 2021
Architectural billings continue to contract in 2021
AIA’s Architecture Billings Index (ABI) score for January was 44.9 compared to 42.3 in December.
Healthcare Facilities | Feb 18, 2021
The Weekly show, Feb 18, 2021: What patients want from healthcare facilities, and Post-COVID retail trends
This week on The Weekly show, BD+C editors speak with AEC industry leaders from JLL and Landini Associates about what patients want from healthcare facilities, based on JLL's recent survey of 4,015 patients, and making online sales work for a retail sector recovery.
