flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

The average U.S. contractor has 8.5 months worth of construction work in the pipeline, as of November 2023

Contractors

The average U.S. contractor has 8.5 months worth of construction work in the pipeline, as of November 2023

Contractor backlogs inched up in November, according to Associated Builders and Contractors.


By Associated Builders and Contractors | December 12, 2023
The average U.S. contractor has 8.5 months worth of construction work in the pipeline, as of November 2023 - Image by Bruno from Pixabay
Image by Bruno from Pixabay

Associated Builders and Contractors reported today that its Construction Backlog Indicator inched up to 8.5 months in November from 8.4 months in October, according to an ABC member survey conducted Nov. 20 to Dec. 4. The reading is down 0.7 months from November 2022.

View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for November. View the full Construction Backlog Indicator and Construction Confidence Index data series.

Despite the monthly increase, backlog is currently 0.8 months lower than at July’s cyclical peak. The sharpest declines over that span occurred among contractors with more than $100 million in annual revenues, who collectively reported fewer than 10 months of backlog in November for the first time since the second quarter of 2018.

ABC’s Construction Confidence Index readings for sales and staffing levels increased in November, while the reading for profit margins fell. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.

“A growing number of contractors are reporting declines in backlog,” said ABC Chief Economist Anirban Basu. “The interest rate hikes implemented by the Federal Reserve appear to be making more of a mark on the economy. Not only has the cost of capital risen over the past 20+ months, but credit conditions are also tightening, rendering project financing even more challenging.

“The good news is that certain interest rates have begun to fall in anticipation of Federal Reserve rate cuts next year, perhaps as early as the first quarter,” said Basu. “Still, 2024 is poised to be weaker from a construction demand perspective for many firms, especially those that depend heavily on private developers. Those operating in public construction and/or industrial segments should meet with less resistance on average.”

The average U.S. contractor has 8.5 months worth of construction work in the pipeline, as of November 2023The average U.S. contractor has 8.5 months worth of construction work in the pipeline, as of November 2023

 

 

Related Stories

| May 7, 2012

2012 BUILDING TEAM AWARDS: Fort Belvoir Community Hospital

A new military hospital invokes evidence-based design to create a LEED-certified facility for the nation’s soldiers and their families.

| May 7, 2012

2012 BUILDING TEAM AWARDS: Audie L. Murphy VA Hospital

How a Building Team created a high-tech rehabilitation center for wounded veterans of the conflicts in Iraq and Afghanistan.

| May 3, 2012

2012 BUILDING TEAM AWARDS: Rush University Medical Center

This fully integrated Building Team opted for a multi-prime contracting strategy to keep construction going on Chicago’s Rush University Medical Center, despite the economic meltdown.

| May 3, 2012

U of Michigan team looking to create highly efficient building envelope designs

The system combines the use of sensors, novel construction materials, and utility control software in an effort to create technology capable of reducing a building’s carbon footprint.

| May 3, 2012

Best commercial modular buildings and marketing programs recognized

Judges scored entries on architectural excellence, technical innovation, cost effectiveness, energy efficiency, and calendar days to complete.

| May 3, 2012

Zero Energy Research Lab opens at North Texas

The living lab—the only one of its kind in Texas—is designed to test various technologies and systems in order to achieve a net-zero consumption of energy.

| May 3, 2012

NSF publishes ANSI standard evaluating the sustainability of single ply roofing membranes

New NSF Standard provides manufacturers, specifiers and building industry with verifiable, objective criteria to identify sustainable roofing products.

| May 3, 2012

Gilbane to provide CM services for North Reading’s integrated middle/high school

The project scope includes a wastewater treatment plant, demolition of the existing high school and extensive athletic fieldwork.

| May 3, 2012

Howard S. Turner 1911–2012

A founding member of the Turner Construction Co.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021