SOURCE: Associated Builders and Contractors Florida East Coast

Associated Builders and Contractors Florida East Coast

May 31, 2012 10:23 ET

Local and National Construction Leaders Comment on Latest Data

Construction Backlog Declines 5.4 Percent in the First Quarter of 2012; Nonresidential Construction to Remain Soft in Summer Months

COCONUT CREEK, FL--(Marketwire - May 31, 2012) - Associated Builders and Contractors (ABC) released its Construction Backlog Indicator (CBI) for the first quarter of 2012. CBI declined 5.4 percent from the previous quarter, dipping from 7.8 months to 7.4 months, but is slightly higher compared to the first quarter of 2011. CBI is a forward-looking economic indicator that measures the amount of construction work under contract to be completed in the future.

National Perspective

Anirban Basu
ABC Chief Economist

  • "On the heels of a mixed bag of national economic news, CBI declined for the second quarter in a row," he said. "The lull in nonresidential construction momentum is not poised to end in the immediate term. The nation's nonresidential construction activity will remain soft during the summer months, with flat to declining nonresidential construction spending."
  • "The ongoing instability in the nation's nonresidential construction industry appears to be related to the period of economic weakness that developed in the broader economy last year, as well as concerns regarding export growth due to recessionary forces in Europe," Basu said. "The result is that many prospective construction projects were cancelled or postponed."

Local/ Regional Perspective

Carlos Ardavin Jr.
CEO Matrix Construction Group / Director, ABC-FEC

  • "The trend in South Florida seems to be a rise in private sector commercial projects. In the past few years, many construction companies had changed their focus to pursue public sector work due to the rapid decline of private sector work," he said.
  • "In 2012, it appears that private investors, able to take advantage of the reduced value of real estate, are now feeling comfortable investing in the improvement of their property," Ardavin said. "This trend is happening on large scale projects such as the Genting and Swire projects, as well as smaller commercial office and retail buildings throughout South Florida. While vertical and civil public work is still significant throughout South Florida, it's very comforting to see a healthy balance between public and private sector work again."

Industry Highlights

  • During the first quarter of 2012, average construction backlog for commercial and institutional, and heavy industrial declined by less than half a month. Infrastructure fell by .52 months.
  • The commercial/institutional segment of construction backlog expanded from 7.26 months in the first quarter of 2011 to 7.65 months in the first quarter of this year.
  • Average construction backlog in the heavy industrial category slipped to 5.24 months this quarter - the worst performance in the history of this segment.

For Industry trend data, go here: http://www.abc.org/Hot_Links/Construction_Backlog_Indicator/CBI_Charts.aspx#CBISegment
For Regional trend data, go here: http://www.abc.org/Hot_Links/Construction_Backlog_Indicator/CBI_Charts.aspx#CBIRegion
To read more about CBI click here: http://www.abc.org/Hot_Links/Construction_Backlog_Indicator.aspx

About ABC and ABC Florida East Coast Chapter
Associated Builders and Contractors (ABC) is a national association with 74 chapters representing 23,000 merit shop construction and construction-related firms with nearly two million employees. ABC's membership represents all specialties within the U.S. construction industry and is comprised primarily of firms that perform work in the industrial and commercial sectors of the industry.

ABC Florida East Coast Chapter, founded in 1968, serves nearly 550 members from the Florida Keys to the Space Coast with a wide variety of services including education and training, representation with federal, state and local governments, referral services, discounts ranging from vehicle fleets to health insurance and mobile phone service, networking and community service opportunities. For more information, visit www.abc.org and www.abceastflorida.com.

Contact Information

  • To speak to ABC's chief economist and local commercial construction leaders contact:

    Elizabeth Haag
    Email Contact
    305.517.7595