Alabama Construction News

OCT-DEC 2018

Alabama Construction News is the states only bimonthly magazine dedicated to the commercial construction industry.

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16 AL CONSTRUCTION NEWS OCT-DEC 2018 INDUSTRY OUTLOOK & TRENDS FOR ALABAMA, PRESENTED BY ABC OF ALABAMA ABC's Construction Backlog Indicator Hits a New High in Second Quarter of 2018 WASHINGTON, Sept. 17—Associated Builders and Contractors reports that its Construction Backlog Indicator expanded to a record 9.9 months during the second quarter of 2018. Backlog is up 12.2 percent from the first quarter and 14 percent compared to the same time last year. "Construction backlog has never been higher in the history of this series," said ABC Chief Economist Anirban Basu. " While contractors collectively reported a higher backlog, it was the industrial contractor segment that had the largest increase in the second quarter. With industrial production rising and factory capacity utilization recovering, there is more demand for both improved and new industrial space. This was especially apparent among contractors in the southern United States, where backlog stands at 11.2 months and has increased 2.2 months over the past year. "The disproportionate role played by technology companies Architecture Firm Billings Slow But Remain Positive in September BILLINGS GROWTH SLOWS BUT IS STABLE ACROSS SECTORS. WASHINGTON – Oct. 24, 2018 – Architecture firm billings growth slowed in September but remained positive for the twelfth consecutive month, according to a new report today from The American Institute of Architects (AIA). AIA's Architecture Billings Index (ABI) score for September was 51.1 compared to 54.2 in August. However, continued strength in new projects coming into architecture firms points to billings growth in the coming months. "Similar to the strong conditions we've seen nationally, architecture firms located in the Midwest and Southern regions of the country continued to report very strong billings in September," said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. "However, billings were soft at firms located in the Northeast again, where they have declined or been flat for the entire year so far." KEY ABI HIGHLIGHTS FOR SEPTEMBER INCLUDE: Regional averages: Midwest (59.7), South (54.1), West (53.1), Northeast (46.6) Sector index breakdown: institutional (55.1), multi-family residential (54.9), mixed practice (53.4), commercial/industrial (50.8) Project inquiries index: 58.8 Design contracts index: 54.1 Regional and sector categories above are calculated as a three- month moving average, whereas the national index, design contracts, and inquiries are monthly numbers. Months of Backlog % Change from Q1 2018 Change from Q2 2017 REGION Northeast 10.40 9.1% + 0.70 months South 11.18 10.5% + 2.17 months Middle States 7.23 -0.7% - -0.68 months West 10.69 28.3% + 3.87 months INDUSTRY Commercial/ Insititutional 10.11 10.1% + 1.72 months Heavy Industrial 7.81 33.0% + 2.31 months Infrastructure 10.06 0.5% + -1.60 months COMPANY SIZE <$30 Million 8.51 5.2% + 0.99 months $30-$50 Million 15.07 61.0% + 4.17 months %50-$100 Million 11.59 4.6% + 2.39 months >$100 Million 13.48 66.6% + 2.37 months Construction Backlog Indicator

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