Associated Builders and Contractors reported today that its Construction Backlog Indicator fell to 8.2 months in August, according to an ABC member survey conducted Aug. 20 to Sept. 5. The reading is down 1.0 months from August 2023.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for August. View the full Construction Backlog Indicator and Construction Confidence Index data series.
Only the infrastructure category experienced a monthly increase in backlog among the three major segments, reflecting strength in public construction spending. Nonetheless, over the past year, backlog has declined in all three segments.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels fell in August. The readings for sales and staffing levels remain above the threshold of 50, indicating expectations for growth over the next six months, while the reading for profit margin expectations fell below that threshold.
“As predicted, confidence among contractors is slipping,” said ABC Chief Economist Anirban Basu. “While ABC contractor members are still anticipating expanding sales and employment, profits margins are increasingly under pressure as project owners face high borrowing and construction delivery costs in the context of a slowing economy. Many projects have been postponed, resulting in recent backlog declines, most notably in the South.”
Related Stories
Multifamily Housing | Jun 14, 2024
AEC inspections are the key to financially viable office to residential adaptive reuse projects
About a year ago our industry was abuzz with an idea that seemed like a one-shot miracle cure for both the shockingly high rate of office vacancies and the worsening housing shortage. The seemingly simple idea of converting empty office buildings to multifamily residential seemed like an easy and elegant solution. However, in the intervening months we’ve seen only a handful of these conversions, despite near universal enthusiasm for the concept.
Healthcare Facilities | Jun 13, 2024
Top 10 trends in the hospital facilities market
BD+C evaluated more than a dozen of the nation's most prominent hospital construction projects to identify trends that are driving hospital design and construction in the $67 billion healthcare sector. Here’s what we found.
Affordable Housing | Jun 12, 2024
Studio Libeskind designs 190 affordable housing apartments for seniors
In Brooklyn, New York, the recently opened Atrium at Sumner offers 132,418 sf of affordable housing for seniors. The $132 million project includes 190 apartments—132 of them available to senior households earning below or at 50% of the area median income and 57 units available to formerly homeless seniors.
Contractors | Jun 12, 2024
New hire strengthens Kraus Anderson's relationships with design-architects
Nate Enger, the firm’s second design phase services manager, has worked on both sides of the designer-contractor fence.
Contractors | Jun 12, 2024
The average U.S. contractor has 8.3 months worth of construction work in the pipeline, as of May 2024
Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.3 months in May, according to an ABC member survey conducted May 20 to June 4. The reading is down 0.6 months from May 2023.
Lighting | Jun 10, 2024
LEDs were nearly half of the installed base of lighting products in the U.S. in 2020
Federal government research shows a huge leap in the penetration of LEDs in the lighting market from 2010 to 2020. In 2010 and 2015, LED installations represented 1% and 8% of overall lighting inventory, respectively.
Contractors | Jun 7, 2024
First-in-nation law requires contractors to pay prevailing wage for subsidized housing projects in Minnesota
Minnesota recently adopted a first-in-nation law that requires contractors to pay prevailing wage for subsidized housing projects in the state. This action makes Minnesota the first state in the nation to mandate prevailing wages on projects funded by federal Low-Income Housing Tax Credits (LIHTC).
Libraries | Jun 7, 2024
7 ways to change 'business as usual': The Theodore Roosevelt Presidential Library
One hundred forty years ago, Theodore Roosevelt had a vision that is being realized today. The Theodore Roosevelt Presidential Library is a cutting-edge example of what’s possible when all seven ambitions are pursued to the fullest from the beginning and integrated into the design at every phase and scale.
Education Facilities | Jun 6, 2024
Studio Gang designs agricultural education center for the New York City Housing Authority
Earlier this month, the City of New York broke ground on the new $18.2 million Marlboro Agricultural Education Center (MAEC) at the New York City Housing Authority’s Marlboro Houses in Brooklyn. In line with the mission of its nonprofit operator, The Campaign Against Hunger, MAEC aims to strengthen food autonomy and security in underserved neighborhoods. MAEC will provide Marlboro Houses with diverse, community-oriented programs.
Contractors | Jun 4, 2024
Contractors expect to spend more time on prefabrication, according to FMI study
Get ready for a surge in prefabrication activity by contractors. FMI, the consulting and investment banking firm, recently polled contractors about how much time they were spending, in craft labor hours, on prefabrication for construction projects. More than 250 contractors participated in the survey, and the average response to that question was 18%. More revealing, however, was the participants’ anticipation that craft hours dedicated to prefab would essentially double, to 34%, within the next five years.
