Construction backlog hit 4-year low in January
Summary
Construction backlog has fallen to its lowest level in four years, with a decline to 8 months in January. Despite this, contractors remain optimistic about their own prospects, though concerns about competitors' sales persist.
Why It Matters
The drop in construction backlog signals potential challenges in the industry, particularly for smaller contractors. Understanding these dynamics is crucial for stakeholders to navigate the market and make informed decisions regarding investments and project planning.
Key Takeaways
- Construction backlog fell to 8 months in January, the lowest in four years.
- Larger contractors saw backlog gains, while smaller ones faced declines.
- Despite a low backlog, 87% of contractors expect their own sales to remain stable or increase.
- 46% of contractors predict sales declines for their competitors in the next two quarters.
- Future optimism may hinge on declining borrowing costs in 2026.
An article from Dive Brief Construction backlog hit 4-year low in January ABC members seem optimistic about their own prospects going forward, but close to half think their competitors will see sales drop over the next two quarters. Published Feb. 12, 2026 Sebastian Obando Reporter Share Copy link Email LinkedIn X/Twitter Facebook Print License Add us on Google Construction laborers work on a new building on Sept. 5, 2025, in San Francisco, Calif. Justin Sullivan/Getty Images via Getty Images Listen to the article 2 min This audio is auto-generated. Please let us know if you have feedback. Dive Brief: Construction backlog fell to 8 months in January, down 0.2 months from December and now sits at its lowest level in four years, according to an Associated Builders and Contractors survey conducted Jan. 20 to Feb. 3. Reinforcing a recent theme in the industry, however, that slump was not felt equally by all builders. Larger contractors with over $50 million in annual revenues saw year-over-year backlog gains, while those below that threshold had fewer pending jobs on their books compared to the same point in 2025. Infrastructure backlog ticked up month over month in January to 10 months, nearly a one month gain from December. Other categories, including commercial and institutional, fell. Year over year, total backlog dropped 0.4 months in January for the industry as a whole. Dive Insight: The unfavorable backlog report to start the year stood in stark contrast to contractors’...