WASHINGTON, D.C., JUNE 21 – Construction backlog among the nation’s largest contractors now stands above 12 months, a record for the series, according to Associated Builders and Contractors (ABC). The biggest firms with the greatest capacity to attract talent have been able to accept work that others have to turn away in a market that has stabilized at a comfortable level but still faces a skilled worker shortage.
Nationally, ABC said its Construction Backlog Indicator (CBI) inched down to 8.6 months during the first quarter of 2016, which represents a decline of 0.8 percent from 2015’s final quarter. CBI has expanded by 2.7 percent on a year-over-year basis, however, which translates into an increase of more than 0.2 months.
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“Contractors are no longer becoming busier, rather, the level of activity has stabilized at a reasonably high level,” said ABC Chief Economist Anirban Basu. “Most contractors continue to express satisfaction regarding the amount of work they have under contract. This is of course truer in certain parts of the nation than others.”
“Subcontractors are much busier than they were several years ago, with general contractors reporting greater difficulty securing experienced contractors,” said Basu. “Some construction firms are turning away work for the first time in years. “The recent stabilization of backlog may reflect supply constraints as much as demand stagnation.
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