{"id":41498,"date":"2023-10-18T07:28:05","date_gmt":"2023-10-18T07:28:05","guid":{"rendered":"https:\/\/www.my-equipment.com\/blog\/?p=41498"},"modified":"2023-10-16T07:39:45","modified_gmt":"2023-10-16T07:39:45","slug":"high-contractor-confidence-despite-shrinking-backlog","status":"publish","type":"post","link":"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/","title":{"rendered":"High Contractor Confidence Despite Shrinking Backlog"},"content":{"rendered":"<blockquote>\n<p style=\"text-align: center;\">Despite a slight reduction in backlogs, contractors maintain high confidence in the construction industry. <strong>From a press release by the Associated Builders and Contractors (ABC), we got some insights about the state of the industry.<\/strong> While backlogs have decreased, profitability and growth remain strong.<\/p>\n<\/blockquote>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#Shrinking_Backlog\" >Shrinking Backlog<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#Contractor_Confidence_Remains_High\" >Contractor Confidence Remains High<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#Economic_Challenges_Ahead\" >Economic Challenges Ahead<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#Regional_Differences_in_Backlog\" >Regional Differences in Backlog<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#Importance_of_Backlog_in_Construction\" >Importance of Backlog in Construction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#Balancing_Workload\" >Balancing Workload<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Shrinking_Backlog\"><\/span><b>Shrinking Backlog<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In September, ABC reported a slight reduction in backlogs, with the Construction Backlog Indicator decreasing by 0.2 months from its August value of 9.2 months. Despite this, high contractor optimism can still be seen. Large contractors with over $100 million in revenue experienced the most substantial decline, with a backlog loss of 3.2 months.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Contractor_Confidence_Remains_High\"><\/span><b>Contractor Confidence Remains High<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The ABC Construction Confidence Index reveals encouraging signs in sales and personnel levels. While profit margins saw a marginal decline due to reduced backlogs, all three scores remain above the 50-point threshold. This indicates optimism for the industry&#8217;s growth over the next six months time.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Economic_Challenges_Ahead\"><\/span><b>Economic Challenges Ahead<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>ABC&#8217;s Chief Economist, Anirban Basu, points out several challenges facing the construction industry. These include political gridlock in Capitol Hill, increasing labor costs, increasing <a href=\"https:\/\/www.my-equipment.com\/\"><b>construction equipment<\/b><\/a> and <strong><a href=\"https:\/\/www.my-equipment.com\/blog\/2022\/08\/increasing-cost-of-construction-materials\/\">materials costs<\/a><\/strong>, ongoing supply chain disruptions, and rising financing costs. According to Basu, the U.S. economy may continue to slow down, which could eventually affect construction demand.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Regional_Differences_in_Backlog\"><\/span><b>Regional Differences in Backlog<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Regional differences in backlogs are something to be noted. The South still maintains the longest backlog, despite a drop in the past month. The West is the only region to witness an increase in backlog over the past year.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Importance_of_Backlog_in_Construction\"><\/span><b>Importance of Backlog in Construction<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A backlog represents the projects a contractor has yet to start. It is something that is necessary for maintaining a steady cash flow, ensuring payments over a predetermined period, and providing a buffer for securing future projects. One thing to note is that having an excessive backlog can also be an issue. It can lead to underbidding, reduced profit margins, and potential financial strain, which your business should avoid, obviously.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Balancing_Workload\"><\/span><b>Balancing Workload<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Balancing workload and financial stability is one of the main jobs when managing a construction company. This involves considering current economic factors, potential recessionary trends, and interest rates. Contractors need to find the right balance between their financial capacity and labor requirements to ensure smooth operations.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite a slight reduction in backlogs, contractors maintain high confidence in the construction industry. From &hellip; <a href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;High Contractor Confidence Despite Shrinking Backlog&#8221;<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":41499,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,126],"tags":[885,884,886],"class_list":["post-41498","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-heavy-construction-equipment","category-news","tag-associated-builders","tag-labor-requirements","tag-materials-costs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>High Contractor Confidence Despite Shrinking Backlog - Heavy Equipment Market Insights | News | Guides &amp; Beyond<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"High Contractor Confidence Despite Shrinking Backlog - Heavy Equipment Market Insights | News | Guides &amp; Beyond\" \/>\n<meta property=\"og:description\" content=\"Despite a slight reduction in backlogs, contractors maintain high confidence in the construction industry. From &hellip; Continue reading &quot;High Contractor Confidence Despite Shrinking Backlog&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/\" \/>\n<meta property=\"og:site_name\" content=\"Heavy Equipment Market Insights | News | Guides &amp; Beyond\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-18T07:28:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-16T07:39:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.my-equipment.com\/blog\/wp-content\/uploads\/2023\/10\/High-Contractor-Confidence-Despite-Shrinking-Backlog.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Editorial Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Editorial Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/\",\"url\":\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/\",\"name\":\"High Contractor Confidence Despite Shrinking Backlog - Heavy Equipment Market Insights | News | Guides &amp; Beyond\",\"isPartOf\":{\"@id\":\"https:\/\/www.my-equipment.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.my-equipment.com\/blog\/wp-content\/uploads\/2023\/10\/High-Contractor-Confidence-Despite-Shrinking-Backlog.jpg\",\"datePublished\":\"2023-10-18T07:28:05+00:00\",\"dateModified\":\"2023-10-16T07:39:45+00:00\",\"author\":{\"@id\":\"https:\/\/www.my-equipment.com\/blog\/#\/schema\/person\/1837c9d45480628c7e671b048b58fdb8\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#primaryimage\",\"url\":\"https:\/\/www.my-equipment.com\/blog\/wp-content\/uploads\/2023\/10\/High-Contractor-Confidence-Despite-Shrinking-Backlog.jpg\",\"contentUrl\":\"https:\/\/www.my-equipment.com\/blog\/wp-content\/uploads\/2023\/10\/High-Contractor-Confidence-Despite-Shrinking-Backlog.jpg\",\"width\":800,\"height\":500},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.my-equipment.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"High Contractor Confidence Despite Shrinking Backlog\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.my-equipment.com\/blog\/#website\",\"url\":\"https:\/\/www.my-equipment.com\/blog\/\",\"name\":\"Heavy Equipment Market Insights | News | Guides &amp; Beyond\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.my-equipment.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.my-equipment.com\/blog\/#\/schema\/person\/1837c9d45480628c7e671b048b58fdb8\",\"name\":\"Editorial Team\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.my-equipment.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/cff72703e894a08ddbcb57cacc015d7aac82cf4bb24ea91ce88796066d1a97fa?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/cff72703e894a08ddbcb57cacc015d7aac82cf4bb24ea91ce88796066d1a97fa?s=96&d=mm&r=g\",\"caption\":\"Editorial Team\"},\"url\":\"https:\/\/www.my-equipment.com\/blog\/author\/singapuri\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"High Contractor Confidence Despite Shrinking Backlog - Heavy Equipment Market Insights | News | Guides &amp; Beyond","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/","og_locale":"en_US","og_type":"article","og_title":"High Contractor Confidence Despite Shrinking Backlog - Heavy Equipment Market Insights | News | Guides &amp; Beyond","og_description":"Despite a slight reduction in backlogs, contractors maintain high confidence in the construction industry. From &hellip; Continue reading \"High Contractor Confidence Despite Shrinking Backlog\"","og_url":"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/","og_site_name":"Heavy Equipment Market Insights | News | Guides &amp; Beyond","article_published_time":"2023-10-18T07:28:05+00:00","article_modified_time":"2023-10-16T07:39:45+00:00","og_image":[{"width":800,"height":500,"url":"https:\/\/www.my-equipment.com\/blog\/wp-content\/uploads\/2023\/10\/High-Contractor-Confidence-Despite-Shrinking-Backlog.jpg","type":"image\/jpeg"}],"author":"Editorial Team","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Editorial Team","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/","url":"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/","name":"High Contractor Confidence Despite Shrinking Backlog - Heavy Equipment Market Insights | News | Guides &amp; Beyond","isPartOf":{"@id":"https:\/\/www.my-equipment.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#primaryimage"},"image":{"@id":"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#primaryimage"},"thumbnailUrl":"https:\/\/www.my-equipment.com\/blog\/wp-content\/uploads\/2023\/10\/High-Contractor-Confidence-Despite-Shrinking-Backlog.jpg","datePublished":"2023-10-18T07:28:05+00:00","dateModified":"2023-10-16T07:39:45+00:00","author":{"@id":"https:\/\/www.my-equipment.com\/blog\/#\/schema\/person\/1837c9d45480628c7e671b048b58fdb8"},"breadcrumb":{"@id":"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#primaryimage","url":"https:\/\/www.my-equipment.com\/blog\/wp-content\/uploads\/2023\/10\/High-Contractor-Confidence-Despite-Shrinking-Backlog.jpg","contentUrl":"https:\/\/www.my-equipment.com\/blog\/wp-content\/uploads\/2023\/10\/High-Contractor-Confidence-Despite-Shrinking-Backlog.jpg","width":800,"height":500},{"@type":"BreadcrumbList","@id":"https:\/\/www.my-equipment.com\/blog\/2023\/10\/high-contractor-confidence-despite-shrinking-backlog\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.my-equipment.com\/blog\/"},{"@type":"ListItem","position":2,"name":"High Contractor Confidence Despite Shrinking Backlog"}]},{"@type":"WebSite","@id":"https:\/\/www.my-equipment.com\/blog\/#website","url":"https:\/\/www.my-equipment.com\/blog\/","name":"Heavy Equipment Market Insights | News | Guides &amp; Beyond","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.my-equipment.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.my-equipment.com\/blog\/#\/schema\/person\/1837c9d45480628c7e671b048b58fdb8","name":"Editorial Team","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.my-equipment.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/cff72703e894a08ddbcb57cacc015d7aac82cf4bb24ea91ce88796066d1a97fa?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/cff72703e894a08ddbcb57cacc015d7aac82cf4bb24ea91ce88796066d1a97fa?s=96&d=mm&r=g","caption":"Editorial Team"},"url":"https:\/\/www.my-equipment.com\/blog\/author\/singapuri\/"}]}},"_links":{"self":[{"href":"https:\/\/www.my-equipment.com\/blog\/wp-json\/wp\/v2\/posts\/41498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.my-equipment.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.my-equipment.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.my-equipment.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.my-equipment.com\/blog\/wp-json\/wp\/v2\/comments?post=41498"}],"version-history":[{"count":1,"href":"https:\/\/www.my-equipment.com\/blog\/wp-json\/wp\/v2\/posts\/41498\/revisions"}],"predecessor-version":[{"id":41500,"href":"https:\/\/www.my-equipment.com\/blog\/wp-json\/wp\/v2\/posts\/41498\/revisions\/41500"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.my-equipment.com\/blog\/wp-json\/wp\/v2\/media\/41499"}],"wp:attachment":[{"href":"https:\/\/www.my-equipment.com\/blog\/wp-json\/wp\/v2\/media?parent=41498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.my-equipment.com\/blog\/wp-json\/wp\/v2\/categories?post=41498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.my-equipment.com\/blog\/wp-json\/wp\/v2\/tags?post=41498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}