Skip to main content

ABC's Construction Backlog Indicator rebounds in 2017

Associated Builders and Contractors (ABC) recently reported that its Construction Backlog Indicator (CBI) rose to 9 months during the first quarter of 2017, up 8.1 percent from the fourth quarter of 2016.  CBI is up by 0.4 months, or 4 percent, on a year-over-year basis.

“This was a terrific report,” said ABC Chief Economist Anirban Basu. “For the first time in the series’ history, every category—firm size, industry and region—registered quarterly growth in CBI. Among the big winners were firms in the western United States and those with annual revenues between $30 million and $50 million per annum"

Highlights by Region

  • Surging financial markets helped support activity in financial centers like New York, Philadelphia and Boston. Expanding cyber-security and life sciences activity supported markets as geographically diverse as Washington/Baltimore; Austin, Texas; Silicon Valley, Calif., and Seattle. 
  • Though backlog is slightly lower in the South on a year-over-year basis, it continues to report the lengthiest backlog, at 9.8 months. A number of markets remain extraordinarily active with respect to commercial construction, including Atlanta and Miami and Tampa, Fla. Distribution center construction also continues to be active due to a combination of busier seaports and the ongoing online retail boom.
  • Backlog in the West was up by a remarkable 26 percent during the quarter.  Part of this was due to statistical payback after a surprisingly weak fourth quarter. However, this is also a reflection of the rapid commercial growth in Seattle, Denver, Silicon Valley, San Diego, Phoenix and other population growth hotspots.
  • Higher oil and natural gas prices helped to drive CBI higher in the Middle States. Backlog in the region expanded by a more-than-respectable 10 percent during the first quarter, and now stands at a healthy 8.5 months.  Chicago continues to be a weak spot, however, registering slow job growth relative to other major U.S. metropolitan areas in recent quarters.
  • Backlog in the Northeast rose to 8.7 months during the first quarter. Backlog is up by almost precisely half a month over the past year. The New York and Boston metropolitan areas remain particularly active. 

Highlights by Industry

  • Backlog in the commercial/institutional segment rose by more than 11 percent during the first quarter, and now stands at nearly 9 months. Backlog also expanded in the heavy industrial and infrastructure categories during the first three months of the year.     
  • Average backlog in the heavy industrial category rose to 5.88 months, but remains well below levels registered during much of the history of the series.  Excluding the fourth quarter of 2016, this represents the lowest reading since the fourth quarter of 2014. There are many forces at work, including slowing auto sales, downward pressure on prices in a number of key manufacturing segments and soft exports.
  • Backlog in the infrastructure category expanded during the first quarter and remains above historic levels. Actual infrastructure spending has been unimpressive in many categories recently, including wastewater, water supply, dams/levies and highway/street. Available survey data hint at a bit of a pickup in activity during the quarters ahead.
  • Commercial/institutional backlog expanded to 8.9 months, matching its highest level since the third quarter of 2014. Though there are growing concerns regarding overbuilding in a number of metropolitan areas, and retail stores continue to close in large numbers, increases in office and hotel construction are helping to propel this category forward.

​Highlights by Company Size

  • Backlog for each of the four company size categories increased to start the year.  Firms with revenues of $30 million to $50 million, many of which are in the commercial/institutional segments, were the clear outperformers in terms of expanding backlog during the first quarter of 2017. Backlog for this group of firms expanded by more than two months, indicating growing confidence among developers and other purchasers of construction services
  • Backlog among firms with annual revenues of less than $30 million increased by 5.3 percent during the quarter. Over the course of time, the nonresidential construction recovery has broadened enough to encompass many of the smallest firms.
  • The largest firms, those with annual revenues above $100 million and which are disproportionately represented in the infrastructure category, report the lengthiest backlog at 11.8 months. This was up by more than 9 percent during the quarter.  Backlog for this group is approaching the one-year mark, which is considered to be a sign of significant health.

Interesting read originally from BDC Network

Comments

Post a Comment

Popular posts from this blog

Cooking Outside the Box - Fine Homebuilding

Sign up for eletters today and get the latest how-to from Fine Homebuilding, plus special offers. Designed by a passionate Dutchman who longed for a more functional kitchen, PITT Cooking’s independent gas burners take kitchen layout to a whole new level. Unlike the fixed grid of burners in a typical cooktop, PITT burners sit in individual holes in a countertop in a custom layout of your choosing (as long as they are at least 3-3/16-in. apart). This lets you match the spacing precisely to the way you cook. Plus you get the striking combination of a professional-grade kitchen with minimalist modern aesthetic. 3 burner sizes: small (2 kW), medium (3 kW), and combined wok/simmer (5 kW) 31 different kits with 1 to 6 burners each Available in aluminum or brass with cast-iron pan supports Burners easily disassemble for cleaning Pricing available on request pittcooking.com PITT Cooking’s wok ring slips right over the 5kW burners to perfectly support round-bottom pots or pans...
Post a Comment
Read more

The Walk-in Shower Specialists In Los Angeles California

If you wish to look for a walk-in showering system, we're just a call away. We have been the shop to consider if you'd like custom bath and showering systems and we've been a popular choice for more than 12 years. Our designs are elegant and spacious and it could be equipped with popular features that will provide you with a calming spa-like experience every time you hit the shower. You could check out our extensive list of walk-in showers in Los Angeles CA from the best brands like Ella, Sterling and Dreamline and they come in various sizes that will fit any type of bathroom. These brands also provide selections for safety features such as comfortably positioned and easy-to-hold grab-bar, low floor threshold and a high weight supporting seating area. You could enjoy an energizing shower experience with our walk-in shower which can be customized to blend into any theme or background. We are also proud of our installation team because they're friendly and fast. All ...
Post a Comment
Read more

Right On Hue - Ideas For Incorporating Color In Your Kitchen Remodel - Dover Home Remodelers

Right On Hue. Ideas for incorporating color in your kitchen remodel When it comes to bringing color into the kitchen, many homeowners take an all-or-nothing approach. What I hear most often from customers during the design stage of a kitchen remodel is that their overwhelming fear is committing to a color that will lock them in—and adversely affect resale. But it doesn’t have to be that way. If you’d like to add color to your kitchen, there are options for creatively incorporating your favorite hues into your remodel without being completely landlocked. Start by identifying your color personality and tolerance. Then add color to your space in a way that suits your taste and stays within your comfort zone. The Minimalist. Clean, simple and classic: These homeowners are drawn to the all-white kitchen trend with quartz or marble countertops, white cabinets and white subway tile. Easy (and non-permanent) ways to add contrasting color in these spaces include: Textiles: Kitchen towels...
Post a Comment
Read more