The backlog is otherwise known as the “protective shield” of the industry of construction, however, it appears that the backlog is on a constant decline in all regions of the US and across all subsectors of construction. The Construction Backlog Indicator significantly dropped in April, which is one of the lowest readings since 2012 according to the Associated Builders and Contractors. The Indicator is showing a drop to 7.8 months. In the meantime, subsectors such as commercial construction.
Table of Contents
The Lowest Backlog Reading Reported in April 2020 Since Q3 2012
According to the Associated Builders and Contractors, the backlog dropped to 7.8 months in April with a drop of 0.4 months for commercial construction. However, commercial construction was down to 1.7 months in March 2019. The backlog is otherwise observed as a protective shield against recession but that wasn’t the case amidst the latest crisis that brought a great number of construction sites to a halt.
Roughly 30% of ABC Members Avoided Crisis Interruption
The Associated Builders and Contractors (ABC) reported that only 30% of ABC members that were surveyed for the latest report didn’t have issues with delays and interruptions during the first wave of the COVID-19 outbreak. The rest of the contractors had construction projects either placed on a halt by the government or were forced to delay the projects themselves. Some of the sources of interruptions were the lack of labor, the lack of following protective guidelines, as well as weak level of protection on the job site when it comes to wearing masks and practicing social distancing.
Construction Services Could Be Suppressed for Some Time
As the Chief Economist at the Associated Builders and Contractors stated on the matter of backlog declines in the industry, vacant offices, numerous businesses that are not likely to survive the crisis and the economic halt may see the industry of construction struggling for some time.
