By KERRY SMITH BUCK

WASHINGTON, D.C. – According to a recent report by Associated Builders and Contractors, commercial builders with less than $30 million in annual revenues saw a monthly decrease in work backlog from July to August 2025.

But larger contractors, those over $30 million per year, say they’re experiencing the steepest backlog of construction work in more than two years.

Associated Builders and Contractors reported in mid-Sept. that its Construction Backlog Indicator fell from 8.8 months in July to 8.5 months in August, entirely attributable to contractors with under $30 million in annual revenues.

For larger contractors, backlog has risen in each of the past three months, the ABC says, and is now at the highest level in over two years.

“The dip in backlog observed in August (for smaller ABC-member contractors) is not surprising given ongoing declines in nonresidential construction spending,” says ABC Chief Economist Anirban Basu. “While backlog in the heavy industry and infrastructure categories has held up well, commercial and institutional backlog has not. With private-sector projects struggling under the weight of rising materials costs, policy uncertainty and reemerging labor shortages, that category may remain weak over the next few quarters.

“About one  in four contractors reported having a project delayed or canceled due to tariffs,” adds Basu. “While that is relatively stable from July, a similar share reported project delays or cancellations due to lack of funding and labor force issues. While contractor confidence was stable for the month, it will be interesting to see how long this optimism persists if the myriad headwinds facing the industry remain in place.”