The US non-residential construction backlog rebounded in August, as a record share of builders and associated contractor members reported that they had data center work under contract, ABC reported on September 15.
ABC’s construction backlog indicator rose to 8.5 months from 8.0 months in July, returning to the August 2025 level. The results are based on a survey of ABC members conducted from August 20 to September 4.
The infrastructure backlog rose 1.2 months in August to 10 months, while the heavy industrial backlog fell to 8.3 months and remains 2.7 months below the year-ago level. Click to enlarge.
Graphic courtesy of Associated Builders and Contractors
About one in six ABC members are currently employed to perform data center work, the highest share ever recorded by the association. Contractors working in data centers reported a backlog of 9.9 months, compared to 8.3 months for contractors without such work.
“Data centers continue to keep contractors busy even as activity softens in other segments,” said ABC chief economist Anirban Basu. He said the narrowing gap between contractors with and without data center work appears to reflect more companies securing data center projects, rather than a broader market shift.
The infrastructure portfolio was the highest among the three sectors at 10 months, up from 8.8 months in July, but down from 11.2 months a year earlier. The commercial and institutional portfolio increased to 8.5 months from 8.0 months in July. The heavy industrial backlog fell to 8.3 months from 9.2 months and is down from 11 months in August 2025.
ABC’s construction confidence index for sales rose to 62.0 in August from 61.2 in July, while the profit margin reading rose to 52.9 from 52.7. Staff confidence fell to 59.5 from 62.3. All three remained above 50, indicating expectations for growth over the next six months.
“The share of contractors intending to reduce their staffing levels over the next six months rose to 12.3% in August, the highest in any month since December,” Basu said. He added that more contractors mentioned the labor shortage without being asked and noted that construction job offers for nearly two years.
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ENR reported Sept. 3 that an independent AGC-NCCER workforce survey found that 28 percent of respondents had performed data center work in the previous year. Among companies that reported effects on the workforce, 58% cited increased competition for skilled workers and 49% increased wage pressure.
Construction firms added 22,000 jobs in August, while the industry’s unemployment rate fell to 3.1 percent, the lowest of any month in 26 years of available data, according to an AGC analysis of federal employment data.
