Construction Leaders Confident in June Staffing Levels, Profit Margins, Sales
In times of such economic uncertainty, any sign of optimism can be a positive ray of light and, in this case, that is in the form of construction leader confidence. According to Associated Builders and Contractors' (ABC) Construction Backlog Indicator (CBI), construction leaders in the U.S. showed increased confidence in June as it pertained to staffing levels, profit margins and sales.
The CBI also noted that while expansion in construction sales and staffing levels is expected in the next six months, it is predicted that profit margins will drop. However, the construction industry must remain cautious.
"While backlog has been stable over the past two months, current readings may be hiding some latent weakness," ABC Chief Economist Anirban Basu said in the report. "Many contractors indicate that projects are being placed on hold. Some of this may be due to public health or jobsite-specific concerns, but tighter financial conditions also play a role. When projects are postponed, they remain embedded within contractor backlog, but near-term revenue suffers and the probability of outright project cancellation rises."
—Andrew Michaels, editorial associate