As an indication that the nation’s construction industry is vibrant heading into late 2023, the Associated Builders and Contractors is reporting that the index it uses to measure backlog projects stood at a healthy 9.2 months in August.
That backlog, reports the association’s chief economist Anirban Basu, “continues to be at the upper end of historic levels, with the infrastructure category registering substantial gains.”
That particular sector backlog, continued Basu, “suggests that a growing number of public works projects is poised to break ground.”
According to the ABC Construction Backlog Indicator, the heavy industrial sector saw a substantial backlog increase from July when it stood at 5.2 months. Last month, the figure was up to 7.7 months.
Commercial and institutional work saw a backlog decrease, from 9.8 months in July to 9.5 months in August. But, as indicated by Basu, the numbers in the infrastructure category saw the greatest change from 8.2 months in July to 10.2 months last month.
Regionally, the South recorded the greatest backlog figures at 11.4 months. The Northeast, Middle West, and West all came in between 8.3 and 8.8 months.
By far, companies with revenues in excess of $100 million recorded the greatest backlog at 13.8 months. Companies with revenues between $30 million and $100 million saw backlogs ranging from 10.8 months to 12.8 months.
The smallest backlogs, at 8.4 months, was recorded by companies with revenues of $30 million or less.
In a separate ABC survey, respondents reported generally upbeat opinions on such matters as sales, profit margins, and staffing.
“There’s no sign of a construction recession in the near term,” said Basu in looking at these positive numbers. “If anything, contractors are more upbeat, as policy and technology shifts along with the economic transformation are creating substantial demand for improvements and growth in America’s built environment.”
By Garry Boulard
