According to the Associated Builders and Contractors (ABC), the backlog of construction projects shrunk nationally during the fourth quarter of 2018, but actually grew in the South during the same period. ABC’s economic metric, the Construction Backlog Indicator (CBI), showed that the national backlog decreased to 8.9 months, down 1.1 percent from the previous quarter, while the South’s stretched to 11.21 months, up 12 percent.
ABC chief economist Anriban Basu credits the South’s high construction backlog to significant growth in areas like Charlotte, Atlanta, Orlando, Dallas, and Nashville. Basu asserts that rapid population growth in this region has boosted demand for infrastructure.
Overall, the national backlog in 2018 hit historic highs, which Basu attributes to
• a surge in material prices early in the year, which likely slowed project planning and contact negotiations
• rising interest rates for much of the year, causing some projects to be postponed or canceled
• market volatility during the fourth quarter, which could’ve caused investors to hold off
Here, in Western North Carolina, we're certainly experiencing a spike in population growth, complemented by significant expansion in a variety of industries. And for over 50 years, IMOCO has done its part to help Western North Carolina grow through full-service industrial and mechanical construction contracting throughout the region. And throughout our history, we've prided ourselves on always finishing projects on-budget and on-time. In a time when construction backlog presents a serious problem both for businesses expanding within our region and those moving into it, IMOCO offers construction contracting whose expertise and timeliness you can depend on.
Contact IMOCO today to learn more about our industrial and mechanical contracting services!