Commercial construction contractors upbeat on outlook despite worsening material shortages, worker shortages

Contractors continue to face a shortage of building materials like lumber and steel, while cost fluctuations for the building products are having increasing impact on business, according to second quarter data from the U.S. Chamber of Commerce Commercial Construction (Index). Rising optimism from the commercial construction industry reflects what we’re seeing across the broader economy,” said U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley. The Index comprises three leading indicators to gauge confidence in the commercial construction industry, generating a composite Index on the scale of 0 to 100 that serves as an indicator of health of the contractor segment on a quarterly basis. The Q2 2021 results from the three key drivers are: - Revenue: Contractors’ revenue expectations over the next 12 months increased to 61 (up four points from Q1). - New Business Confidence: The overall level of contractor confidence increased to 62 (up three points from Q1). - Backlog: The ratio of average current to ideal backlog rose three points to 72 (up three points from Q1).