Contractors plan to keep hiring even as their sales outlook weakens

Associated Builders and Contractors (ABC) published its latest Construction Backlog Indicator and Construction Confidence Index on 21 October, reported in full by Building Design + Construction. The figures come from a survey of ABC members run between 21 September and 5 October, and they give one of the most current reads on how US contractors feel about work and headcount.

The numbers

The average contractor reported 8.7 months of work under contract in September. That is 0.2 months more than in August and 0.2 months more than a year earlier, and it's the second month in a row that backlog has risen.

The picture differs by sector. Commercial and institutional backlog climbed to its highest point since July 2025, after slipping in the middle of this year. Heavy industrial backlog is 0.5 months higher than a year ago, but it is now at its lowest level since March.

Data centres are carrying the load

Around 15% of ABC members are currently contracted on data-centre projects. Those firms reported an average of 11.3 months of backlog, three months more than members without that work. Access to it is uneven: 39% of contractors with annual revenue above $100 million have data-centre work, against roughly one in ten of those below that size.

"Backlog increased for the second straight month in September as data center work continues to keep contractors busy," Anirban Basu, Chief Economist, ABC

Confidence: hiring up, sales and margins down

All three parts of the Confidence Index stayed above 50, the line that signals expected growth over the next six months. But they moved in different directions. The staffing reading went up. The sales reading fell to an 11-month low, and the profit margin reading also dropped.

More than one in four contractors now expect their margins to shrink over the next six months, the largest share since November 2025. Basu pointed to materials, labour and borrowing costs as the pressure points.

The bigger picture

Put together, the survey describes an industry that wants more people even while it is less sure about new orders. Contractors with long data-centre pipelines have the visibility to commit to headcount. Smaller firms and those reliant on other sectors are working from shorter books and tighter margins, which tends to make them more cautious about adding salaried roles. For TA teams, that split matters more than the headline average.