Associated Builders and Contractors reports today that its Construction Backlog Indicator remained unchanged at 9.2 months in December 2022, according to an ABC member survey conducted Dec. 20, 2022, to Jan. 5, 2023. The reading is one month higher than in December 2021. (View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for December 2022.)
Backlog remains at its highest level since the second quarter of 2019. This has been especially true in the South, which has been the case for many of the past several years.
ABC’s Construction Confidence Index reading for profit margins and sales increased in December, while the reading for staffing levels moved lower. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
“Contractors enter the new year with plenty of optimism,” said ABC Chief Economist Anirban Basu. “Backlog remains elevated, which means that, even if the economy were to enter recession this year, contractors would likely be insulated from significant harm. Rather than fixate on the possibility of a recession, many contractors remain focused on growth, with expectations for rising sales and staffing levels over the next half year. Even the reading on profit margins increased this month, perhaps reflecting an improved supply chain.
“While 2023 continues to be filled with promise, contractors may soon show more concern,” said Basu. “Anecdotal evidence suggests that financing commercial real estate projects is more difficult, due in part to recession predictions. The general increase in the cost of capital has also jeopardized many projects, with certain contractors noticing an increase in postponements.”
Related Stories
Laboratories | Sep 12, 2022
Lab space scarcity propels construction demand in life sciences sector
In its 2021 Life Sciences Real Estate Outlook, JLL predicted that access to talent would be a primary concern for an industry sector that had been growing by leaps and bounds. A year later, talent still guides real estate decisions. But market conditions of a different sort were cooling the biotech field: namely, investors that have soured on startups which underperformed after going public. What this means for new construction and renovation going forward is unpredictable, as the drivers behind life sciences’ surge are still palpable.
| Sep 12, 2022
Staff at New York City architecture firm is first in U.S. to unionize
Staff at New York City architecture firm is first in U.S. to unionize.
| Sep 12, 2022
San Antonio’s new courthouse aims to provide safety and security while also welcoming the public
The San Antonio Federal Courthouse, which opened earlier this year, replaces a courthouse that had been constructed as a pavilion for the 1968 World’s Fair.
Giants 400 | Sep 9, 2022
Top 25 Casino Contractors + CM Firms for 2022
The Yates Companies, W.E. O'Neil Construction, Alberici-Flintco, and PCL Construction Enterprises top the ranking of the nation's largest casino contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Sep 9, 2022
Top 90 Hospitality Sector Contractors + CM Firms for 2022
AECOM, Suffolk Construction, STO Building Group, and The Yates Companies top the ranking of the nation's largest hospitality facilities sector contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. Note: This ranking includes revenue for all hospitality facilities work, including casinos, hotels, and resorts.
Giants 400 | Sep 9, 2022
Top 80 Hotel Sector Contractors + CM Firms for 2022
AECOM, Suffolk Construction, STO Building Group, and Swinerton top the ranking of the nation's largest hotel and resort sector contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
| Sep 9, 2022
Add sand shortage to supply chain woes
As if it wasn’t enough to have lumber, windows, doors, and metal pipe in short supply, you can add sand, which is theoretically plentiful on Earth, to the list of construction materials that can be hard to come by.
Senior Living Design | Sep 8, 2022
What’s new with AQ: The top trends in active adult living
Today's 55-or-better buyers are ready to design their lives and their homes as they see fit. With so much growth on tap, builders and developers must stay apprised of trends related to home, environment, and culture of 55+ communities.
| Sep 8, 2022
The Twin Cities’ LGBTQ health clinic moves into a new and improved facility
For more than 50 years, Family Tree Clinic has provided reproductive and sexual health services to underserved populations—from part of an old schoolhouse, until recently.
| Sep 8, 2022
U.S. construction costs expected to rise 14% year over year by close of 2022
Coldwell Banker Richard Ellis (CBRE) is forecasting a 14.1% year-on-year increase in U.S. construction costs by the close of 2022.
