Seizing The Opportunity: WOC 2011 Starts The Year Off Strong

World of Concrete 2011 returned to the Las Vegas Convention Center January 18-21, 2011; Seminars 17-21, and launched a wide array of new products and equipment, presented a world-class Education and Certification Program, and provided crucial networking opportunities for exhibitors and attendees.

This well-known industry show continued to build upon its reputation as the only annual international commercial construction trade show for the concrete and masonry industry with 48,554 professional registrants in attendance. WOC also showcased just over 1,200 indoor/outdoor exhibitors in more than a half-million square feet of exhibit space.

“WOC is very proud to deliver a quality audience to our exhibitors and a show full of leading industry suppliers, related services, and educational opportunities to our attendees. Even though the numbers are slightly down from 2010, we have found that a majority of our exhibitors are actually getting quality leads and making more sales at the show. Attendees are taking advantage of all the opportunities and finding the information they can’t get anywhere else, all in one place. We consider WOC 2011 to be a very successful event,” said Jackie James, Director, World of Concrete.
“This is the largest annual show that we attend in North America. It’s a good source for new business every year because all the key players in the industry are here,” said Exhibitor Frank Zambotti of Applied Systems Associates, Inc.

“I had never attended WOC before, but a friend recommended that I come to find mixers and check out all the new products. The show is unbelievable! The size and selection are incredible— everything one could possibly need is here,” said first-time attendee John Bernal of Yonkers, NY.
For International Visitors

World of Concrete, for the sixth consecutive year, participated in the 2011 International Buyer Program. World of Concrete Management and the US Commercial Service worked closely in the global promotion of the show to bring international buyers and exhibitors together to expand business both domestically and overseas. As part of the program, over a dozen delegations from all over the globe attended World of Concrete to network with other international visitors as well as connect with U.S. exhibitors interested in exporting goods and services.

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Construction Backlog Indicator (CBI) Down 9 Percent in January

Associated Builders and Contractors (ABC) today reports that its Construction Backlog Indicator (CBI) sharply declined by 9 percent between November 2009 and January 2010. CBI has slipped 16.3 percent during the last year and currently stands at 5.5 months, the lowest point reported in the 15 months ABC has gathered data. CBI is a forward-looking indicator that measures the amount of construction work under contract to be completed in the future.


"The fact that the CBI is now at its lowest point since ABC began measuring the statistic in November 2008 indicates that the nation's nonresidential construction industry remains mired in its own recession," said ABC Chief Economist Anirban Basu.

"Nonresidential construction tends to lag the overall economy by 12 to 24 months. With the broader economy having been in a slow recovery for roughly three quarters, and with the stimulus package still having an impact, the hope had been that some signs of backlog stability would be apparent by now. However, all indications continue to point toward an ongoing decline in the commercial and industrial construction industry."

Regional Highlights

Between January 2009 and January 2010, average backlog was down in each of the geographic regions, except for the Middle States.

Particularly sharp declines occurred in the Northeast and the South, which have both experienced declines of roughly half a month of backlog during the past two months.

The sharpest regional decline occurred in the South, falling from 8.12 months in January 2009 to 6.03 months in January 2010.

Analysis

"While most regions experienced a decline in average backlog during the latest two-month period, with the exception of the Middle States, the pace of decline was quite modest. Overall, the data are consistent with the notion that while the pace of decline continues to slow, the downward trend is evident in virtually every region of the nation."

Industry Highlights

The average backlog fell in all three industry segments – commercial, industrial and infrastructure – between January 2009 and January 2010.

Between November 2009 and January 2010, average backlog in the infrastructure category fell by precisely two months.

At 5.3 months, backlog in the commercial and institutional category now stands at its lowest level in the survey's history.

Analysis

"The data indicate that infrastructure-related work, attributable to the stimulus package passed in February 2009, is no longer generating substantial new backlog now that the funds have largely been obligated to current projects under way. The elevated backlog readings of previous months are associated with substantial levels of ongoing construction, but the decline in backlog signals an eventual downturn in infrastructure-related construction spending."


Highlights by Company Size

With the exception of firms in the $30 million to $50 million category, average backlog declined for every size category.

No firm in the $75 million to $100 million category reported an average backlog of more than five months, and many reported backlog between three and four months.

Firms with annual revenues in excess of $100 million reported the lengthiest backlog, although backlog for this group has been declining overall in recent months.

Analysis

"Average backlog is now at its lowest level in both the $50 million to $75 million and the $75 million to $100 million categories. Many of these firms appear to be general contractors that continue to be underbid by larger firms with greater resources and greater capacity to undertake projects with little or no profit margin built into their bids. Larger firms also may be more likely to maintain productive banking relationships, allowing them to more nimbly access available contractual opportunities."

To read more about the latest CBI, click here.

Associated Builders and Contractors (ABC) is a national association with 77 chapters representing 25,000 merit shop construction and construction-related firms with two million employees. Visit ABC at http://www.abc.org/

AIA Billing Index Shows Slight Increase in Demand

According to the American Institute of Architects, the Architecture Billings Index (ABI) moved slightly higher in February. The index for last month was 44.8, compared to 42.5 in January. The February index indicates a continued decline in demand for design services. Any reading above 50 indicates an increase in billings.

The ABI is widely viewed as a leading economic indicator of construction activity. The ABI tyoically reflects an approximate nine to 12 month lag time between architecture billings and construction spending.

"We continue to hear that funding dedicated for construction projects in the stimulus package has not yet been awarded, resulting in a bottleneck of potential projects that could help jump-start the economy," said Kermit Baker, PhD, Hon. AIA, chief economist at the American Institute of Architects, which compiles the ABI. "That, coupled with a persistently rigid credit market for private sector projects, is a key reason why the design and construction industry continue to suffer at near historic levels in terms of job losses." The AIA conducts a monthly survey of architectural firms to build the index.

Key February 2010 ABI highlights:

Regional averages: Midwest (49.4), Northeast (44.1), West (43.6), South (40.7)

Sector index breakdown: multi-family residential (47.3), institutional (44.2), mixed practice (43.3), commercial / industrial (43.2)

About the Architecture Billings Index

The Architecture Billings Index (ABI) is a diffusion index derived from the monthly Work-on-the-Boards survey, conducted by the AIA Economics & Market Research Group. The ABI serves as a leading economic indicator that leads nonresidential construction activity by approximately 9-12 months. The indexes are developed from the monthly Work-on-the-Boards survey panel where participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month.