Economics
Large Projects Hold Up Backlog as Small-Firm Activity Slips, ABC Says
Data-center builders average nearly 11 months of work while national totals continue to ease
Data-center construction remains one of the strongest segments in ABC’s October backlog survey, with contractors active in the sector reporting nearly 11 months of work under contract.
Backlog slipped again in October, with Associated Builders and Contractors reporting an 8.4-month average based on member responses from Oct. 20 to Nov. 4. The reading is the lowest since May and marks the third consecutive monthly decline after peaking in July, according to ABC’s data series.
The pullback continues to fall hardest on smaller firms. Contractors with less than $30 million in annual revenue reported 7.29 months of backlog in October, down more than a full month from August.
Larger firms tied to manufacturing and data-center construction remain the stabilizing force: contractors active in data-center projects reported 10.9 months of backlog, compared with 8.0 months for those without that work.
ABC data shows regional results widened as the backlog in the Northeast continued its steady decline that began in July, falling from 8.11 months to 7.65 in October.
The Middle States retreated after a late-summer high, while the West rebounded to 8.12 months following a weak September. The South continued to post the strongest readings, hovering near 9.6–11.2 months throughout the period.
ABC’s confidence readings showed the same softening, with sales expectations unchanged in October, but outlooks for profit margins and staffing both declined.
All three indices remained above 50, indicating firms still anticipate growth into early 2026 but with tighter margins and more cautious hiring.
Looking for quick answers on construction and engineering topics?
Try Ask ENR, our new smart AI search tool.
Ask ENR →
“Nearly 65% of contractors indicated that they think the U.S. construction industry is contracting,” said ABC Chief Economist Anirban Basu. He noted that 23% of surveyed firms expect sales to fall in the next six months, the highest share in more than a year.
The combination of a three-month backlog and weaker margin expectations signals more competitive bidding conditions as firms work to maintain workloads through the winter.
Bryan Gottlieb is the online editor at Engineering News-Record (ENR).
Gottlieb is a five-time Society of Professional Journalists Excellence in Journalism award winner with more than a decade of experience covering business, construction and community issues, including finance, law and real estate. He has reported for Adweek and the San Diego Daily Transcript and led a community newsroom in Santa Monica, Calif. He served as editor-in-chief of the Detroit Metro Times and as managing editor at Roofing Contractor, where he helped shape national industry coverage. At Engineering News-Record, Gottlieb covers breaking news, large-scale infrastructure and megaprojects, regulatory developments and business trends across the U.S. and global construction sectors.
email: gottliebb@enr.com | office: (248) 786-1591
