Associated Builders and Contractors reported that its Construction Backlog Indicator declined to 8.1 months in February, according to an ABC member survey conducted Feb. 20 to March 5. The reading is down 1.1 months from February 2023.
Backlog fell for every size of contractor except for those with under $30 million in annual revenues in February. Over the past year, however, the largest contractors—those with greater than $50 million in revenues—have experienced the greatest decline in backlog.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels also decreased in February. However, all three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“Backlog is declining and confidence began to fade modestly in February,” said ABC Chief Economist Anirban Basu. “While it is far too early to predict an industrywide downturn given that confidence readings continue to signal growth along sales, employment and profit margin dimensions, it appears that a rising tide of project cancellations and postponements has begun to make its mark.
“With excess inflation remaining stubbornly durable, at least according to certain measures, interest rates are poised to remain higher for longer,” said Basu. “That gives higher borrowing costs more time to upset the economic momentum that has so surprised economists over the past two years and has provided support for various nonresidential construction activities. With so much federal money still entering the economy, there will continue to be support for growth in certain construction segments, including public works and manufacturing-related megaprojects, but industry weakness is more apparent in segments that rely more purely on private financing.”
Related Stories
Green | Aug 7, 2023
Rooftop photovoltaic panels credited with propelling solar energy output to record high
Solar provided a record-high 7.3% of U.S. electrical generation in May, “driven in large part by growth in ‘estimated’ small-scale (e.g., rooftop) solar PV whose output increased by 25.6% and accounted for nearly a third (31.9%) of total solar production,” according to a report by the U.S. Energy Information Administration.
Government Buildings | Aug 7, 2023
Nearly $1 billion earmarked for energy efficiency upgrades to federal buildings
The U.S. General Services Administration (GSA) recently announced plans to use $975 million in Inflation Reduction Act funding for energy efficiency and clean energy upgrades to federal buildings across the country. The investment will impact about 40 million sf, or about 20% of GSA’s federal buildings portfolio.
Government Buildings | Aug 2, 2023
A historic courthouse in Charlotte is updated and expanded by Robert A.M. Stern Architects
Robert A.M. Stern Architects’ design retains the original building’s look and presence.
Hotel Facilities | Aug 2, 2023
Top 5 markets for hotel construction
According to the United States Construction Pipeline Trend Report by Lodging Econometrics (LE) for Q2 2023, the five markets with the largest hotel construction pipelines are Dallas with a record-high 184 projects/21,501 rooms, Atlanta with 141 projects/17,993 rooms, Phoenix with 119 projects/16,107 rooms, Nashville with 116 projects/15,346 rooms, and Los Angeles with 112 projects/17,797 rooms.
Market Data | Aug 1, 2023
Nonresidential construction spending increases slightly in June
National nonresidential construction spending increased 0.1% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. Spending is up 18% over the past 12 months. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.07 trillion in June.
Healthcare Facilities | Aug 1, 2023
Top 10 healthcare design projects for 2023
The HKS-designed Allegheny Health Network Wexford (Pa.) Hospital and Flad Architects' Sarasota Memorial Hospital - Venice (Fla.) highlight 10 projects to win 2023 Healthcare Design Awards from the American Institute of Architects Academy of Architecture for Health.
Digital Twin | Jul 31, 2023
Creating the foundation for a Digital Twin
Aligning the BIM model with the owner’s asset management system is the crucial first step in creating a Digital Twin. By following these guidelines, organizations can harness the power of Digital Twins to optimize facility management, maintenance planning, and decision-making throughout the building’s lifecycle.
K-12 Schools | Jul 31, 2023
Austin’s new Rosedale School serves students with special needs aged 3 to 22
In Austin, the Rosedale School has opened for students with special needs aged 3 to 22. The new facility features sensory rooms, fully accessible playgrounds and gardens, community meeting spaces, and an on-site clinic. The school serves 100 learners with special needs from across Austin Independent School District (ISD).
MFPRO+ New Projects | Jul 27, 2023
OMA, Beyer Blinder Belle design a pair of sculptural residential towers in Brooklyn
Eagle + West, composed of two sculptural residential towers with complementary shapes, have added 745 rental units to a post-industrial waterfront in Brooklyn, N.Y. Rising from a mixed-use podium on an expansive site, the towers include luxury penthouses on the top floors, numerous market rate rental units, and 30% of units designated for affordable housing.
Affordable Housing | Jul 27, 2023
Houston to soon have 50 new residential units for youth leaving foster care
Houston will soon have 50 new residential units for youth leaving the foster care system and entering adulthood. The Houston Alumni and Youth (HAY) Center has broken ground on its 59,000-sf campus, with completion expected by July 2024. The HAY Center is a nonprofit program of Harris County Resources for Children and Adults and for foster youth ages 14-25 transitioning to adulthood in the Houston community.
