Backlogs Increasing for Construction Contractors
Date Posted: January 12, 2023
Posted In: News, Workforce,
From World Of Concrete: If you’re experiencing higher levels of backlog you’re not alone. A recent report from Associated Builders and Contractors revealed that backlogs for construction contractors are now at their highest point since the second quarter of 2019.
The ABC report, known as the “Construction Backlog Indicator,” showed that backlog has increased by almost a month on average for contractors year-over-year.
Backlog increased the most for contractors in the South, according to the report. Southern contractors, on average, are experiencing a backlog of almost a year (11.5 months). By comparison, the region with the second highest backlog in the report was the Northeast (8.6 months on average). The only region to see a slight decrease in reported backlogs was the Midwest (7.8 months), according to the report.
“The rise in backlog is remarkable and unexpected,” said ABC Chief Economist Anirban Basu in a release from the organization. “A number of contractors have been reporting that their backlog has risen rapidly over the past three months, which is counterintuitive given the pervasive view that the broader economy is headed into recession.” Basu said the backlog was “particularly sharp in the commercial and institutional category.
“Health-care-related construction has emerged as a major driver of new activity,” Basu said.
The ABC’s Construction Confidence Index reported staffing level and profit margin expectations increased in December’s report. Meanwhile, expectations for sales were down.
According to the ABC, the readings show expectations of growth over the next six months.