Associated Builders and Contractors reported backlog levels increased across every region except the South during May. Despite the monthly decline, contractors in the South continued to report the largest backlog totals nationally and the strongest year-over-year growth.
The organization’s survey was conducted between May 20 and June 3 among ABC member firms.
Backlog growth signals continued demand for construction services even as contractors face ongoing cost pressures, labor challenges and market uncertainty tied to financing conditions and procurement timing.
Associated Builders and Contractors indicated that data center construction remains a major contributor to elevated backlog levels nationwide.
According to the organization, contractors performing data center work reported an average backlog of 11.6 months compared with 8.6 months for contractors without data center projects.
The concentration of large technology and infrastructure investments has increasingly favored larger contractors with the capacity to manage complex mission-critical projects. That trend has contributed to uneven market conditions across contractor segments despite broader increases in total backlog.
Associated Builders and Contractors reported lower confidence readings in May for sales, staffing and profit margins compared with the prior month. However, all three confidence measures remained above the threshold indicating expected growth during the next six months.
Contractor sentiment has remained sensitive to labor availability, interest rates, material pricing and project financing conditions throughout 2026. Even with rising backlog, some contractors continue to evaluate hiring plans and bidding activity cautiously due to margin pressures and competitive procurement conditions.
The latest backlog data suggests that construction demand remains resilient across several major nonresidential sectors, particularly data center development and large infrastructure-related projects. For owners and developers, elevated backlog levels may continue to affect project scheduling, subcontractor availability and procurement timelines.
The disparity between contractors involved in data center work and those outside the sector also highlights how specialized project types are reshaping workload distribution and capacity across the broader construction market.
Source: Central Ohio ABC.
