Construction Backlog Indicator Expands to 7 Months

Associated Builders and Contractors (ABC) reports that its latest Construction Backlog Indicator (CBI) increased to 7 months in May – a 27 percent increase from January of this year. CBI is a forward-looking indicator that measures the amount of construction work under contract to be completed in the future.

Regional Highlights

• Compared to a year ago, all regions but the South experienced a rise in backlog.
• As of May 2010, the Northeast reports the lengthiest backlog at roughly 7.5 months, the highest level for this region in the history of the survey.
• The Middle States report the shortest backlog at roughly 6.6 months. However, that represents a significant improvement over the 5.6 months in May 2009.

CBI Map of Regions, May 2009 v. May 2010

Industry Highlights

• Backlog in the commercial and institutional category stood at 7.2 months in April and 6.9 months in May. These figures represent some of the best performances since late-2008.
• Backlog related to the heavy industrial category is now at 7.86 months – the highest level in the history of the survey.
• Infrastructure continues to report the lengthiest backlog an 8.75 months; however, the May backlog reading for this category was at its lowest level in nearly a year.

Highlights by Company Size

• The firms with greater than $100 million annual revenue continue to enjoy the longest backlog at 9.4 months.
• Firms with revenue between $30 million and $50 million saw their backlog drop just one half month between April and May 2010.
• One year ago, firms with revenue less than $30 million reported a combined backlog of just 5 months. In May 2010, backlog in this category is up to 6.3 months.

For more information on the ABC Backlog Indicator please contact David Blain at dblain@macpas.comor visit the ABC website at www.abc.org.