Associated Builders and Contractors reported today that its Construction Backlog Indicator declined to 8.7 months in March, according to an ABC member survey conducted March 20 to April 3. The reading is 0.4 months higher than in March 2022.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for March. View the historic Construction Backlog Indicator and Construction Confidence Index data series.
Backlog slipped in March and is now at its lowest level since August 2022. Backlog is down on a monthly basis in every region except for the South, which continues to be associated with elevated levels of current and future construction activity.
ABC’s Construction Confidence Index reading for sales inched higher in March, while the readings for profit margins and staffing levels fell. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
“The deceleration in nonresidential construction activity may have started,” said ABC Chief Economist Anirban Basu. “With widespread fears of recession, credit conditions tightening and more decision-makers turning their attention to cost containment, new construction work may be more difficult for contractors to line up.
“While the confidence and backlog data weakened in March, they indicate a slowing of activity rather than a shift into reverse,” said Basu. “There is a widely held view that financial conditions are tightening in the aftermath of the failures of Silicon Valley Bank and Signature Bank. To the extent that this is true, one could anticipate further slowing and less industry confidence during the months ahead.”
Related Stories
Mixed-Use | Jun 29, 2023
Massive work-live-play development opens in LA's new Cumulus District
VOX at Cumulus, a 14-acre work-live-play development in Los Angeles, offers 910 housing units and 100,000 sf of retail space anchored by a Whole Foods outlet. VOX, one of the largest mixed-use communities to open in the Los Angeles area, features apartments and townhomes with more than one dozen floorplans.
School Construction | Jun 29, 2023
K-12 school construction: 5 ways strong community relations can lead to success
When constructing a K-12 school, building positive relationships with the community—including students, parents, school staff and residents—is critical to the success of the project. Here are five ways Skanska puts the community first when building K-12 schools in the Pacific Northwest.
Multifamily Housing | Jun 28, 2023
Sutton Tower, an 80-story multifamily development, completes construction in Manhattan’s Midtown East
In Manhattan’s Midtown East, the construction of Sutton Tower, an 80-story residential building, has been completed. Located in the Sutton Place neighborhood, the tower offers 120 for-sale residences, with the first move-ins scheduled for this summer. The project was designed by Thomas Juul-Hansen and developed by Gamma Real Estate and JVP Management. Lendlease, the general contractor, started construction in 2018.
Apartments | Jun 27, 2023
Average U.S. apartment rent reached all-time high in May, at $1,716
Multifamily rents continued to increase through the first half of 2023, despite challenges for the sector and continuing economic uncertainty. But job growth has remained robust and new households keep forming, creating apartment demand and ongoing rent growth. The average U.S. apartment rent reached an all-time high of $1,716 in May.
Apartments | Jun 27, 2023
Dallas high-rise multifamily tower is first in state to receive WELL Gold certification
HALL Arts Residences, 28-story luxury residential high-rise in the Dallas Arts District, recently became the first high-rise multifamily tower in Texas to receive WELL Gold Certification, a designation issued by the International WELL Building Institute. The HKS-designed condominium tower was designed with numerous wellness details.
University Buildings | Jun 26, 2023
Addition by subtraction: The value of open space on higher education campuses
Creating a meaningful academic and student life experience on university and college campuses does not always mean adding a new building. A new or resurrected campus quad, recreational fields, gardens, and other greenspaces can tie a campus together, writes Sean Rosebrugh, AIA, LEED AP, HMC Architects' Higher Education Practice Leader.
Standards | Jun 26, 2023
New Wi-Fi standard boosts indoor navigation, tracking accuracy in buildings
The recently released Wi-Fi standard, IEEE 802.11az enables more refined and accurate indoor location capabilities. As technology manufacturers incorporate the new standard in various devices, it will enable buildings, including malls, arenas, and stadiums, to provide new wayfinding and tracking features.
Contractors | Jun 26, 2023
Most top U.S. contractors rarely deliver projects on time: new study
About 63% of leading U.S. contractors are delivering projects out of schedule, according to a survey of over 300 C-suite executives and owners in the construction industry by XYZ Reality. The study implies that the industry is struggling with significant backlogs due, in part, to avoidable defects, scan, and rework.
Green | Jun 26, 2023
Federal government will spend $30 million on novel green building technologies
The U.S. General Services Administration (GSA), and the U.S. Department of Energy (DOE) will invest $30 million from the Inflation Reduction Act to increase the sustainability of federal buildings by testing novel technologies. The vehicle for that effort, the Green Proving Ground (GPG) program, will invest in American-made technologies to help increase federal electric vehicle supply equipment, protect air quality, reduce climate pollution, and enhance building performance.
Office Buildings | Jun 26, 2023
Electric vehicle chargers are top priority for corporate office renters
Businesses that rent office space view electric vehicle (EV) charging stations as a top priority. More than 40% of companies in the Americas and EMEA (Europe, the Middle East and Africa) are looking to include EV charging stations in future leases, according to JLL’s 2023 Responsible Real Estate study.
