Landscape Architect Articles

Construction Backlog Indicator Dips-LC01-31-23 | 10

Construction Backlog Indicator Dips
Construction Confidence Slowing
by Rebecca Radtke, LCMP

The Associated Builders and Contractors (ABC) reported that the Construction Backlog Indicator (CBI) fell to 8.3 months in Feb. or up 0.2 months year-over-year. The indicator is contingent on a survey conducted by the association.

Further, the Construction Confidence Index for sales, profit margins, and staffing levels are being driven by the higher costs. Meanwhile, the National Association of Home Builders (NAHB) showed improvement in the NAHB/Westlake Royal Remodeling Market Index (RMI) for the fourth quarter of 2024 marking a 68, or five points higher than the previous quarter. Yet with all of this, a healthy CBI would simply mean that a steady stream of work is the best way for a company to remain profitable. Further, this means that the current backlog marks a healthy industry.

"While many other economic sentiment readings have deteriorated in recent months, contractors remain optimistic that business conditions will improve through the first half of 2025," said ABC Chief Economist Anirban Basu. "Nearly 60% of contractors intend to increase their staffing levels over the next six months, the highest share in over two years. These hiring expectations suggest that the recent slowdown in industrywide employment is largely confined to the residential segment. Yes, there are some broader signs of emerging economic weakness, but the results of this ABC member survey suggests that contractors will remain busy over the next few quarters."