The South’s construction backlog remains the longest in the nation, averaging 9.8 months in July—2.13 months more than other regions—reflecting strong economic performance, The Center Square writes.
Associated Builders and Contractors economist Zack Fritz attributes the trend to rapid population growth, a robust labor market and high development activity. Infrastructure and data center projects are major drivers, with 1 in 8 ABC members contracted for data center work.
However, contractor confidence is slipping as fewer than 2% expect significant profit margin gains in the next six months, the lowest since October 2024, due to tariffs and rising material costs.
Over 80% have been notified of tariff-related price hikes. Since 2020, the South—excluding Louisiana and Mississippi—has seen strong in-migration, led by Texas, Florida, North Carolina, Georgia and South Carolina, which collectively gained nearly 1.2 million residents. ABC’s Southern region includes 13 states from Texas to Virginia, where busy contractors are keeping backlogs high despite emerging economic pressures.
