Nonresidential Construction Backlog Rising

by Nick Bjork, DJC Oregon, 07.20.2010 

Nonresidential construction work is starting to pick up in the Portland area and across the nation.

The Construction Backlog Indicator, a forward-looking indicator that measures the amount of nonresidential construction work under contract to be completed, is up 27 percent since January, according to new data from Associated Builders and Contractors. The CBI now points to an average seven-month supply of backlogged projects nationwide.

John Killin, president of the ABC Pacific Northwest Chapter, said it’s an uptick, not a massive change. But in all, it’s a positive sign, he said.

In the western U.S., increases in the backlog trail the national increases. The backlog increased 7.8 percent in the 13 western states over the past year. In all the U.S., the Northeast saw the highest increase, 40 percent over the past year.

Killin added that the backlog could be a result of larger projects, not necessarily more projects. But of the local contractors he’s spoken with, the data seems to ring true in the region.

The CBI is complied through monthly surveys sent out to ABC members across the country, using the 2007 revenues from each firm as the baseline for the indicator.


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