TAP/CLICK TO EXPAND AD
Fischer Technology Inc.

Main News Page

ABC Releases September Construction Backlog

WEDNESDAY, OCTOBER 11, 2023

Yesterday (Oct. 10), the Associated Builders and Contractors released its Construction Backlog Indicator numbers for the month of September, reporting that the CBI declined to 9.0 months.

Previously, in August, the CBI reported that the backlog was down from the levels of the second quarter of 2022.

Though it declined last month, the South region reportedly continues to have the lengthiest backlog, which has been the case since October 2021. Over the past year, only the West has reportedly experienced increasing backlog.

“Construction continues to defy the downward gravitational pull of tightening credit conditions,” said ABC Chief Economist Anirban Basu. “Despite high and rising project financing costs, ABC contractor members continue to report lofty backlog, rising employment, expanding sales and stable profit margins.

“That said, industry headwinds grow in force,” continued Basu. “Interest rates are still edging higher. Political dysfunction in Washington persists. Rising worker compensation costs and lingering supply chain issues are still frustrating industry performance and profitability. The U.S. economy appears poised to slow further.

"If the past is any indication, that will eventually catch up to construction in the form of dissipating demand. But economists have talked about recession for more than a year, and the industry still shows substantial forward momentum. It remains to be seen whether that momentum can survive the latest set of challenges.”

iStockPhoto.com / liewluck
Yesterday (Oct. 10), the Associated Builders and Contractors released its Construction Backlog Indicator numbers for the month of September, reporting that the CBI declined to 9.0 months.
iStockPhoto.com / liewluck

Yesterday (Oct. 10), the Associated Builders and Contractors released its Construction Backlog Indicator numbers for the month of September, reporting that the CBI declined to 9.0 months.

The backlog revealed an increase in numbers over several sectors, including:

  • the Commercial & Institutional industry, from 9.2 to 9.0;
  • the Heavy Industrial industry, from 7.7 to 8.5;
  • the West region, from 8.3 to 8.4;
  • the less than $30 million company size, from 8.4 to 8.0;
  • the $30-$50 million company size, from 10.8 to 10.0; and
  • the greater than $100 million company size, from 13.8 to 13.4.

The backlog also fell in a variety of sectors, including:

  • the Infrastructure industry, from 10.2 to 7.2;
  • the Middle States region, from 8.4 to 7.2;
  • the Northeast region, from 8.8 to 9.4;
  • the South region, from 11.4 to 10.7; and
  • the $30-$50 million company size, from 10.8 to 10.0.

ABC’s Construction Confidence Index reading for sales and staffing levels reportedly moved higher in September. The profit margins reading fell slightly. All three readings reportedly remain above the threshold of 50, indicating expectations for growth over the next six months.

APV Engineered Coatings
NLB Corporation

August Backlog

Last month, the Associated Builders and Contractors released its Construction Backlog Indicator numbers for the month of August, reporting that the CBI remained unchanged for the month. 

Previously, in June, the CBI reported a slight decrease to 8.9 months. Down from 9.0 months in May, the reading was up 0.4 months from June a year ago.

Tarps manufacturing, Inc.
base painters

While the 8.7 months reading was a full month higher than in August 2021, the backlog is reportedly down from the levels of the second quarter of 2022. According to the ABC member survey, which was conducted from Aug. 22 to Sept. 7, the reading remains higher than at any point from March 2020 to March 2022.

The backlog revealed an increase in numbers over several sectors, including:

  • The Commercial & Institutional industry, from 8.9 to 9.1;
  • The Heavy Industrial industry, from 6.6 to 7.4;
  • The West region, from 6.9 to 9.1;
  • The less than $30 million company size, from 7.4 to 7.8;
  • The $30-$50 million company size, from 12.9 to 13.1; and
  • The greater than $100 million company size, from 13.2 to 13.9.

The backlog also fell in a variety of sectors, including:

Quikspray, Inc.
Just Like New Overspray Management
  • The Infrastructure industry, from 9.3 to 8.2;
  • The Middle States region, from 7.5 to 7.2;
  • The Northeast region, from 8.6 to 8.0;
  • The South region, from 11.6 to 10.9; and
  • The $30-$50 million company size, from 10.8 to 10.

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased in August. The index for profit margins bounced back into positive territory while the sales and staffing level indices remained above 50, indicating expectations of growth over the next six months.

ADVERTISEMENTS
Quikspray, Inc.
Just Like New Overspray Management
Tarps manufacturing, Inc.
base painters
APV Engineered Coatings
NLB Corporation

Tagged categories: Associated Builders and Contractors; Associated Builders and Contractors Inc. (ABC); Commercial / Architectural; Construction; Contractors; Economy; Labor; Market; Market data; Market trends; Program/Project Management; Quality Control; Workers

Comments

Join the Conversation:

Sign in to add your comments.
Main News Page