Associated Builders and Contractors reports today that its Construction Backlog Indicator fell 0.1 months in June and stands at 8.9 months, according to an ABC member survey conducted June 21 to July 5. The reading is up 0.4 months from June 2021.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for June 2022.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels declined in June. The indices for sales and staffing remain above the threshold of 50, indicating expectations of growth over the next six months, while the reading for profit margins fell below the threshold of 50 for the first time since October 2021.
“Several months ago, there was conjecture that contractors were generally too upbeat regarding their collective future,” said ABC Chief Economist Anirban Basu. “Increasingly, the data suggest that they were. At the time, many contractors reported surging backlog and an ability to pass along hefty cost increases to project owners. For months, contractors expected sales, employment and margins to expand. The most recent ABC survey indicates that, to secure work and to induce project starts, a growing fraction of contractors is having to trim margins.
“While circumstances are hardly catastrophic, the nonresidential construction marketplace is not as strong as it was expected to be,” said Basu. “Many factors are involved, including materials prices that have remained stubbornly elevated and construction skills shortages that have refused to dissipate.
“In the context of rising fears of recession and rising borrowing costs, the stage has been set for softer nonresidential construction activity going forward," said Basu. "That said, public contractors can expect to remain busy in the context of a significant infrastructure spending package. Still, the market may not prove as robust as anticipated given delayed project start dates as public agencies determine the right moment to purchase construction services. Despite all of these considerations, contractors continue to expect industry sales and employment to expand over the next six months.”
Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month’s work under contract based on the latest financials available, while CCI measures contractors’ outlook for the next six months.
Related Stories
| Aug 11, 2010
Robert F. Kennedy Main Justice Building
The Robert F. Kennedy Main Justice Building houses the U.S. Attorney General's office, the Justice Department headquarters, and the largest historic art collection of any GSA-built facility, so its renovation had to be performed with the utmost care. Offices housing hundreds of lawyers and staff had to remain operational during the construction of a brand new $3.
| Aug 11, 2010
Silver Award: Please Touch Museum at Memorial Hall Philadelphia, Pa.
Built in 1875 to serve as the art gallery for the Centennial International Exhibition in Fairmount Park, Memorial Hall stands as one of the great civic structures in Philadelphia. The neoclassical building, designed by Fairmount Park Commission engineer Hermann J. Schwarzmann, was one of the first buildings in America to be designed according to the principles of the Beaux Arts movement.
| Aug 11, 2010
Bronze Award: Garfield High School, Seattle, Wash.
Renovations to Seattle's historic Garfield High School focused mainly on restoring the 85-year-old building's faded beauty and creating a more usable and modern interior. The 243,000-sf school (whose alumni include the impresario Quincy Jones) was so functionally inadequate that officials briefly considered razing it.
| Aug 11, 2010
Managing the K-12 Portfolio
In 1995, the city of New Haven, Conn., launched a program to build five new schools and renovate and upgrade seven others. At the time, city officials could not have envisioned their program morphing into a 17-year, 44-school, $1.5 billion project to completely overhaul its entire portfolio of K-12 facilities for nearly 23,000 students.
| Aug 11, 2010
Tall ICF Walls: 9 Building Tips from the Experts
Insulating concrete forms have a long history of success in low-rise buildings, but now Building Teams are specifying ICFs for mid- and high-rise structures—more than 100 feet. ICF walls can be used for tall unsupported walls (for, say, movie theaters and big-box stores) and for multistory, load-bearing walls (for hotels, multifamily residential buildings, and student residence halls).
| Aug 11, 2010
Financial Wizardry Builds a Community
At 69 square miles, Vineland is New Jersey's largest city, at least in geographic area, and it has a rich history. It was established in 1861 as a planned community (well before there were such things) by the utopian Charles Landis. It was in Vineland that Dr. Thomas Welch found a way to preserve grape juice without fermenting it, creating a wine substitute for church use (the town was dry).
| Aug 11, 2010
Team Tames Impossible Site
Rensselaer Polytechnic Institute, the nation's oldest technology university, has long prided itself on its state-of-the-art design and engineering curriculum. Several years ago, to call attention to its equally estimable media and performing arts programs, RPI commissioned British architect Sir Nicholas Grimshaw to design the Curtis R.
| Aug 11, 2010
Silver Award: Hanna Theatre, Cleveland, Ohio
Between February 1921 and November 1922 five theaters opened along a short stretch of Euclid Avenue in downtown Cleveland, all of them presenting silent movies, legitimate theater, and vaudeville. During the Great Depression, several of the theaters in the unofficial “Playhouse Square” converted to movie theaters, but they all fell into a death spiral after World War II.
| Aug 11, 2010
Biograph Theater
Located in Chicago's Lincoln Park neighborhood, Victory Gardens Theater Company has welcomed up-and-coming playwrights for 33 years. In 2004, the company expanded its campus with the purchase of the Biograph Theater for its new main stage. Built in 1914, the theater was one of the city's oldest remaining neighborhood movie houses, and it was part of Chicago's gangster lore: in 1934, John Dillin...
| Aug 11, 2010
Special Recognition: Triple Bridge Gateway, Port Authority Bus Terminal New York, N.Y.
Judges saw the Triple Bridge Gateway in Midtown Manhattan as more art installation than building project, but they were impressed at how the illuminated ramps and bridges—14 years in the making—turned an ugly intersection into something beautiful. The three bridges span 9th Avenue at the juncture where vehicles emerge from the Lincoln Tunnel heading to the Port Authority of New Yor...
