Construction backlog rebounds and profit expectations hold despite Iran conflict

by anthony_capkun_2 | 28 April 2026 10:56 am

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Associated Builders and Contractors reported that its Construction Backlog Indicator[2] rose to 8.6 months in March, up 0.5 months from February and up 0.1 months from March 2025.

According to an ABC member survey conducted March 23 to April 6, the 15% of ABC member contractor respondents under contract to perform work on data centers had a significantly longer backlog (10.6 months) than the 85% of contractors not involved with data centers (8.3 months).

“Backlog has fully rebounded from January’s four-year low and, at 8.6 months, is now back to levels not seen since last summer,” said chief economist Anirban Basu. “Contractors appear unfazed by the sharp rise in oil prices precipitated by the conflict in Iran. Even with the potential for accelerated materials price escalation, profit margin expectations improved to the highest level since February 2025.”

The backlog indicator provides a snapshot of how much work contractors have under contract, serving as a measure of construction activity and near-term economic momentum in the industry.

The organization’s Construction Confidence Index readings for profit margins and staffing levels increased in March, while the readings for sales fell. The readings for all three components are higher than they were one year ago and remain above the threshold of 50, indicating expectations for growth over the next six months.

“Staffing expectations, up in each of the past four months, are now at the highest level since April 2022,” Basu continued. “This increase is particularly surprising given that the industry’s hiring rate fell to the lowest level ever recorded in February, although it aligns neatly with the uptick in employment growth observed in the March jobs report.”

Whether this optimism proves justified likely depends on how quickly the conflict in Iran comes to a resolution, Basu added.

“A lengthy dispute will put continued upward pressure on oil prices and borrowing costs.”

Source URL: https://www.metalconstructionnews.com/news/construction-backlog-rebounds-and-profit-expectations-hold-despite-iran-conflict/

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