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Construction Data

ABC Reports Construction Backlog Reaches Three-Year High

ABC reports construction backlog rose to 9.1 months in May as contractor confidence eased.

By Roofing Contractor Staff
ABC's Combo Construction Backlog Indicator from June 2026
Associated Builders and Contractors
June 16, 2026

Associated Builders and Contractors reported that its Construction Backlog Indicator increased to 9.1 months in May, based on a member survey conducted from May 20 to June 3. The reading rose 0.3 months from April and was 0.7 months higher than the level recorded in May 2025.

Backlog expanded across all regions except the South. Despite the monthly decline, the South continues to maintain the longest backlog and posted the strongest year-over-year growth among all regions.

ABC’s Construction Confidence Index showed declines in expectations for sales, profit margins and staffing levels during May. However, all three measures remained above 50, signaling that contractors still anticipate growth over the next six months.

According to ABC Chief Economist Anirban Basu, backlog reached its highest level in nearly three years, largely fueled by ongoing investments in data center construction nationwide. Contractors working on data center projects reported significantly higher backlog levels—11.6 months on average—compared with 8.6 months for firms not involved in those projects.

Basu noted that the concentration of data center work among larger contractors may help explain why overall contractor confidence weakened in May, even as backlog continued to increase.

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month's work under contract based on the latest financials available, while CCI measures contractors' outlook for the next six months. View the methodology for both indicators.

What This Means for Roofing Contractors

For roofing contractors, the increase in construction backlog points to a sustained pipeline of commercial and industrial projects that will require roofing services in the months ahead. While much of the recent backlog growth has been driven by data center construction, roofing contractors also stand to benefit from continued activity in manufacturing, warehouse, healthcare and institutional projects. As owners and developers move forward with large-scale investments, demand for roofing systems is expected to remain steady, particularly in regions experiencing strong commercial construction growth.At the same time, the decline in contractor confidence suggests that roofing firms remain cautious about the business environment. Concerns over labor shortages, material costs, project financing and shrinking profit margins continue to weigh on contractors despite the healthy backlog. Roofing companies may find themselves with ample work opportunities but face increasing pressure to manage costs, secure skilled labor and maintain profitability as competition for workers and resources intensifies.

This article was originally posted on www.wconline.com.
KEYWORDS: ABC (Associated Builders and Contractors) construction climate economic analysis

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Roofing Contractor editor-compiled stories, staff reports and industry news releases.

To submit news or for corrections, contact Tanja Kern, Strategic Content Editor, at kernt@bnpmedia.com.

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