US Construction Backlog Rises While Contractor Profit Confidence Weakens
Project management · AEC industry
Industry economic reports indicate US construction backlog increased in September, yet contractor confidence in future profit margins dropped due to rising material costs and growth heavily concentrated in AI data centers.
Recent economic data from US construction industry associations reveals that contractors face tightening profit margins despite modest gains in project backlogs. Associated Builders and Contractors reported that average backlog rose for a second consecutive month in September to 8.7 months. However, more than a quarter of surveyed contractors anticipated narrowing margins over the next six months, while sales forecasts fell to an 11-month low. High construction input costs and an uneven distribution of project demand remain primary factors behind the cautious outlook.
Key takeaways
- Construction input prices increased 11.2% year-over-year in September, marking the largest annual increase in nearly four years.
- Construction spending on data centers surged 8.6% in September, and contractors holding data center projects reported 11.3 months of backlog, three months more than firms without them.
- Only 15% of surveyed ABC contractor members held data center contracts, and nonresidential spending fell outside of data center and power projects.
- Planning and institutional groundbreakings in education and healthcare showed improvement in September, according to Dodge Construction Network.
Source：Construction Dive Read the original ↗
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