Associated Builders and Contractors (ABC) released its Construction Backlog Indicator (CBI) for the first quarter of 2012. CBI declined 5.4% from the previous quarter, dipping from 7.8 months to 7.4 months, but is slightly higher compared to the first quarter of 2011.
“On the heels of a mixed bag of national economic news, CBI declined for the second quarter in a row,” said ABC Chief Economist Anirban Basu. “The lull in nonresidential construction momentum is not poised to end in the immediate term. The nation’s nonresidential construction activity will remain soft during the summer months, with flat to declining nonresidential construction spending.
“The ongoing instability in the nation’s nonresidential construction industry appears to be related to the period of economic weakness that developed in the broader economy last year, as well as concerns regarding export growth due to recessionary forces in Europe,” Basu said. “The result is that many prospective construction projects were cancelled or postponed.”
Regional highlights
- Compared to the first quarter of 2011, construction backlog is slightly higher in every region with the exception of the Northeast.
- In the West, construction backlog expanded by 0.46 months from the fourth quarter of 2011 to the first quarter of this year.
- The Middle States have the shortest backlog at 6.34 months and the South continues to register the lengthiest backlog at 8.88 months.
Analysis
“The South, which includes a number of rapidly expanding, commodity rich states, continues to be the top performer in terms of producing new opportunities for contractors,” said Basu. “Though average construction backlog in the South was roughly flat during the past quarter, backlog is up by seven-tenths of a month from one year ago. No other region has generated an increase in backlog that large.
“Construction backlog expansion in the Middle States continues to be stifled,” Basu said. “Gains in industrial production have been sporadic during the past year – too scattered to induce the next wave of manufacturing-related construction projects. In addition, average construction backlog in the Northeast has fallen on a year-over-year basis. Last year’s soft patch, including the economic weakness associated with the debt ceiling issue, appears to have impacted the financial institution-rich Northeast more than other region.” +
Related Stories
| Aug 11, 2010
CHPS debuts high-performance building products database
The Collaborative for High Performance Schools (CHPS) made a new tool available to product manufacturers to help customers identify building products that contribute to sustainable, healthy, built environments. The tool is an online, searchable database where manufacturers can list products that have met certain environmental or health standards ranging from recycled content to materials that contribute to improved indoor air quality.
| Aug 11, 2010
ICC launches green construction code initiative for commercial buildings
The International Code Council has launched its International Green Construction Code (IGCC) initiative, which will aim to reduce energy usage and the carbon footprint of commercial buildings.Entitled “IGCC: Safe and Sustainable By the Book,” the initiative is committed to develop a model code focused on new and existing commercial buildings. It will focus on building design and performance.
| Aug 11, 2010
Green Building Initiative launches two certification programs for green building professionals
The Green Building Initiative® (GBI), one of the nation’s leading green building organizations and exclusive provider of the Green Globes green building certification in the United States, today announced the availability of two new personnel certification programs for green building practitioners: Green Globes Professional (GGP) and Green Globes Assessor (GGA).
| Aug 11, 2010
Potomac Valley Brick launches brick design competition with $10,000 grand prize
Potomac Valley Brick presents Brick-stainable: Re-Thinking Brick a design competition seeking integrative solutions for a building using clay masonry units (brick) as a primary material.
| Aug 11, 2010
Outdated office tower becomes Nashville’s newest boutique hotel
A 1960s office tower in Nashville, Tenn., has been converted into a 248-room, four-star boutique hotel. Designed by Earl Swensson Associates, with PowerStrip Studio as interior designer, the newly converted Hutton Hotel features 54 suites, two penthouse apartments, 13,600 sf of meeting space, and seven “cardio” rooms.
| Aug 11, 2010
HDR, Perkins+Will top BD+C's ranking of the nation's 100 largest healthcare design firms
A ranking of the Top 100 Healthcare Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Steel Joist Institute announces 2009 Design Awards
The Steel Joist Institute is now accepting entries for its 2009 Design Awards. The winning entries will be announced in November 2009 and the company with the winning project in each category will be awarded a $2,000 scholarship in its name to a school of its choice for an engineering student.
