Backlog for contractors over $100 million in annual revenue reaches highest level since 2021, while small firms record their lowest since 2021.

Homebuilding

Construction backlog rises to 8.2 months in December, supported by data center momentum

Construction backlog rises to 8.2 months in December, supported by data center momentum

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The Construction Backlog Indicator increased to 8.2 months in December, according to Associated Builders and Contractors. The figure is 0.1 months higher than in November but 0.1 months lower than in December 2024, based on data from an ABC member survey conducted between December 22 and January 7.

Contractors with annual revenue exceeding $100 million reported their largest backlog since 2021, while firms earning under $30 million recorded their smallest backlog since that year.

The Construction Confidence Index readings for sales, profit margins, and staffing increased in December. All three readings remain above 50, indicating expectations for growth over the next six months, though each is lower compared with one year earlier.

Thirteen percent of ABC members had active data center contracts in December. These firms reported an average backlog of 11.0 months, compared with 7.8 months for firms without such projects.

ABC Chief Economist Anirban Basu said backlog declined for smaller contractors during 2025 because nonresidential construction momentum is confined to the data center segment, which benefits larger firms.