ABC’s Construction Backlog Indicator Rises in June; Contractor Optimism Grows

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Associated Builders and Contractors reported that its Construction Backlog Indicator rose to 8.1 months in June, an increase of 0.2 months from May’s reading. CBI is down approximately 8% from its June 2019 level. Every region except the Middle States experienced an increase in backlog in June compared to May, according to an ABC member survey conducted from June 20-July 1. Additionally, the survey indicates that confidence among U.S. construction industry leaders increased regarding staffing levels, profit margins and sales in June. Construction sales and staffing levels are expected to expand over the next six months, while profit margins are … Read more

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Monthly Construction Input Prices Rise in June, Says ABC

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Construction input prices rose 2.2% in June, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released recently. Nonresidential construction input prices rose by 2.3% for the month. Among the 11 subcategories, six experienced monthly increases. The increase in prices was driven primarily by energy, with the largest increase coming from crude petroleum, which rose 71.9%. Unprocessed energy materials rose 16.8%, while the price of natural gas fell 18.4%. Softwood lumber experienced an 11.0% increase in June. “For many contractors, lack of demand for their services has emerged as the leading … Read more

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Proposal Activity for Q2 Construction Released

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According to a recent report released by PSMJ Resources, proposal activity for architecture, engineering and construction firms sank to its lowest quarterly level in over a decade in the 2nd quarter of 2020, as the coronavirus-related downturn trimmed backlog and reduced revenue for firms coast to coast. PSMJ Resources’ Quarterly Market Forecast reported a near-record-low net plus/minus index of -22% for proposal activity in the latest quarter, substantially down from the +17% recorded in the 1st quarter. Backlog slid from an NPMI of +6% in the 1st quarter to -24% in the 2nd, while the revenue NPMI dropped from +9% to … Read more

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Construction Industry Adds 158,000 Workers in June, Infrastructure Jobs Decline, Says AGC

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Construction employment increased by 158,000 jobs in June, but employment related to infrastructure slipped, according to a newly released analysis by the Associated General Contractors of America of government data. Association officials cautioned that additional infrastructure-building job losses are inevitable unless the federal government replenishes depleted state and local budgets for roads and other public works.   “The gain in construction employment in June was concentrated in homebuilding, with scattered increases in nonresidential building, while heavy and civil engineering construction employment—the category that includes many highway and other infrastructure workers—shrank by nearly 10,000 jobs,” said Ken Simonson, the association’s chief … Read more

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Report Reveals Commercial Construction Index Drops Amid Coronavirus Pandemic

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The recently released Q2 2020 USG Corporation + U.S. Chamber of Commerce Commercial Construction Index plunged from 74 in Q1 to 56 in Q2. Two of the index’s three main indicators—confidence in new business and revenue expectations—both fell 26 points, to 50 and 44, respectively, revealing the severe impact of the coronavirus pandemic on the construction industry. However, the third indicator, backlog, dropped only a modest three points, remaining consistent with the first half of 2018. Survey results were largely collected in the month of April, at the height of shutdown restrictions. The overall drop in the index stemmed in part from the fact … Read more

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