The Daily Dig
Associated Builders and Contractors reported on October 13, 2026, that their Construction Backlog Indicator rose to 8.7 months in September. That’s up 0.2 months from both the prior month and the prior year. The figures come from an ABC member survey conducted September 21 to October 5, 2026.
Server Side Up
Data center work is doing the heavy lifting behind the latest increase.
“Backlog increased for the second straight month in September as data center work continues to keep contractors busy,” said ABC Chief Economist Anirban Basu.
The 15% of ABC members under contract on data centers averaged 11.3 months of backlog. That’s a full three months more than members without that work.
The gains aren’t spread evenly. Among contractors with more than $100 million in annual revenue, 39% have data center work right now. Below that mark, it’s just 1 in 10.
Sector Shuffle
Commercial and institutional backlog dipped in the middle of 2026, but it has since climbed to its highest level since July 2025.
Heavy industrial moved the other way. It’s still up 0.5 months over the past year, but it fell to its lowest level since March.
Margin Call
ABC’s Construction Confidence Index showed staffing expectations rising in September, while the sales and profit margin readings fell. All three stayed above 50, which signals expected growth over the next six months.
Cost pressure is weighing on the outlook. Basu pointed to rising materials, labor, and borrowing costs.
“More than 1 in 4 contractors expect their profit margins to contract over the next six months, the highest share since November 2025,” he said. Sales expectations also fell to an 11-month low in September.
Snapshot:
Report: ABC Construction Backlog Indicator and Construction Confidence Index
Publisher: Associated Builders and Contractors (ABC)
Release Date: October 13, 2026
Survey Period: September 21 to October 5, 2026
Backlog (September): 8.7 months
Monthly Change: Up 0.2 months
Yearly Change: Up 0.2 months
Trend: Second straight monthly increase
Commercial/Institutional Backlog: Highest since July 2025
Heavy Industrial Backlog: Lowest since March; up 0.5 months year over year
Members on Data Center Work: 15%
Data Center Member Backlog: 11.3 months average, 3 months more than other members
Data Center Work, Over $100 Million Revenue: 39% of contractors
Data Center Work, Under $100 Million Revenue: 1 in 10 contractors
Confidence Index, Staffing: Increased
Confidence Index, Sales: Fell, 11-month low
Confidence Index, Profit Margins: Fell
Confidence Index Readings: All three above 50
Margin Outlook: More than 1 in 4 expect contraction, highest share since November 2025
Cost Pressures Cited: Materials, labor, borrowing costs
Source Quoted: Anirban Basu, ABC Chief Economist
TheJobWalk Thoughts
Basu says data center work disproportionately benefits the largest contractors. Only 1 in 10 firms under $100 million in revenue has that work right now. Smaller shops often get onto these jobs as trade partners, which makes time spent building relationships with the big primes time well spent.
Longer backlogs cut both ways when costs are climbing. Work booked months out is typically priced well before it gets built, and any cost increase in between comes out of margin. Contractors without solid escalation language could watch a full schedule turn into a thin year.
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