This article is for Carolinas construction firm leaders, project managers, and business development professionals seeking to understand and act on the latest Construction Backlog Indicator data. The April 2026 ABC Construction Backlog Indicator reveals a complex and rapidly changing market landscape, especially for firms operating in the Carolinas. Understanding these trends is crucial for making informed decisions about resource allocation, business development, and strategic positioning. Whether you’re aiming to secure a healthy pipeline of projects, navigate the bifurcation between large and small contractors, or break into the booming data center sector, this guide provides actionable insights tailored to your needs.
The April 2026 Construction Backlog Indicator from Associated Builders and Contractors just hit 8.8 months—a 10-month high. But before you celebrate, understand this: that headline masks the most significant bifurcation the construction industry has seen in years. If your construction firm generates less than $100 million in annual revenues, the national story isn’t your story.
The April 2026 ABC Construction Backlog Indicator registered 8.8 months of contracted work nationwide, up 0.2 months from March 2026 and 0.1 months from April 2025. This marks the highest reading since June 2025. A construction backlog is the total amount of work a construction company has in its pipeline, representing all the projects that have been contracted but not yet concluded—and right now, that pipeline is filling unevenly.
The bifurcation is stark. Contractors with more than $100 million in annual revenue now carry backlogs 2.2 months longer than April 2025. Every other revenue category—$50-100M, $30-50M, and under $30M—is reporting smaller backlogs than a year ago. ABC Chief Economist Anirban Basu described April’s reading as “a 10-month high driven by a narrow subset of the membership.”
Data centers explain the gap. 42 percent of contractors over $100 million are under contract for data center projects, compared to just 7 percent of smaller contractors. Firms with data center exposure average 12.2 months of backlog versus 8.3 months for those without—a nearly four-month differential in forward revenue visibility.
The South leads all U.S. regions in backlog, and the Carolinas sit at the heart of the national data center corridor. Duke Energy projects data center power demand in its territories to rise from roughly 3 gigawatts to 6 gigawatts over the next decade. For sub-$100M Carolinas contractors, data center exposure is now the single biggest variable in backlog health—and firms that position this quarter through specialty roles, JV participation, and ABC Carolinas programs can still secure a healthy construction backlog heading into 2027-2028.
National backlog sits at 8.8 months, the highest since June 2025, modestly above April 2025’s 8.7 months. Organizations like Associated Builders and Contractors track a national Construction Backlog Indicator, which signals expected industry activity levels several quarters in advance. Backlogs are used as a primary barometer for the health of both individual firms and the overall economy.
But headline growth is misleading. To convert backlog amounts in dollars into months of available work, the formula is: current month’s level of backlogs (reported in dollars) ÷ previous fiscal year’s revenues (base year) × 12. When you apply that calculation across contractor size categories, the picture fragments:
| Contractor Annual Revenue | April 2026 Backlog (months) | Year-over-Year Change |
|---|---|---|
| Over $100M | 11.5 | +2.2 |
| $50M–$100M | 8.4 | -0.6 |
| $30M–$50M | 7.2 | -0.9 |
| Under $30M | 6.1 | -1.1 |
| Basu’s characterization—a 10-month high driven by a narrow subset—cuts to reality. For commercial and institutional work, backlog gains are heavily skewed toward complex, capital-intensive construction projects, rather than the everyday work most Carolinas merit shop contractors compete for. |
Data centers have become the defining driver of backlogs for large U.S. construction companies in 2026, especially in the South. Hyperscale and AI-driven demand from operators such as Meta, Google, Microsoft, Amazon Web Services, and major colocation providers is concentrating contract awards within a relatively small pool of prequalified general contractors and specialty trades.
The disparity by exposure is dramatic: firms with data center work average 12.2 months of backlog versus 8.3 months for those without. This dynamic is inflating the national construction backlog indicator, even as many small and mid-sized construction companies experience flat or shrinking pipelines. A sizable backlog increasingly depends on whether your construction business has cracked into mission-critical work.
The South consistently posts the highest regional backlog in ABC’s CBI, and April 2026 continued this trend, with the Southern backlog running at approximately 9.4 months—0.6 months above the national average.
Charlotte, the Raleigh-Durham Triangle, and Upstate South Carolina now sit squarely within a national data center corridor stretching from Northern Virginia through Georgia. Duke Energy’s publicly stated expectation: data center power demand in its Carolinas territories will nearly double from roughly 3 gigawatts today to about 6 gigawatts within the next decade, driven by AI, cloud computing, and enterprise colocation.
Every incremental gigawatt translates into billions of dollars of mission-critical future projects—shell buildings, fit-outs, substations, transmission upgrades, chilled water plants. While a handful of national players are winning prime contracts, a deep bench of Carolinas mechanical, electrical, concrete, steel, sitework, and specialty trade contractors is required to deliver quality projects on these campuses.
ABC’s Construction Confidence Index tracks three dimensions: sales expectations, profit margins, and staffing levels over the next six months. In April 2026, all three components registered above the 50 threshold, signaling expansion. Sales expectations remain robust, with many contractors reporting strong pipelines and continued demand in public/institutional and mission-critical sectors.
The margin story stands out: only about one in five contractors (19%) now expect profit margin compression over the next six months—the lowest share since January 2025. Strong backlogs among data-center-exposed contractors and continued public/institutional work are supporting optimism even as some private commercial segments soften.
For Carolinas firms, staffing confidence remains high. Firms continue to hire and invest in workforce development, aligning with the ongoing demand for ABC Carolinas apprenticeship, safety training, and upskilling programs. A healthy backlog allows companies to plan hiring, equipment purchases, and resource allocation with confidence.
While the CBI and CCI are positive, Basu issues a cautionary note. National construction spending data show slower growth or pullbacks in certain private commercial segments—conventional office and retail—that matter for smaller contractors focused on traditional commercial work.
Early 2026 oil prices spiked to $92/barrel, rippling through diesel, freight, and asphalt-related costs, compressing margins on fixed-price work. Emerging materials price escalation hit steel (up 12% Q1-Q2), electrical gear (20-30% hikes), and transformers (24-36 month lead times). High interest rates increase borrowing costs for construction projects, impacting the affordability of new developments and making smaller contractors more vulnerable.
Excessive backlog accumulation is often driven by labor shortages, supply chain disruptions, poor planning and scheduling, economic and policy factors, and external events such as weather. Economic conditions significantly influence the size of the construction backlog, with growth leading to increased investments and contract awards, while economic uncertainty can result in fewer projects being initiated. Labor shortages in the construction industry, particularly among skilled trades, can limit a contractor’s ability to take on new projects.
Why does confidence hold? Many contractors have diversified portfolios and strong order books for 2026-2027, providing visibility despite macro volatility.
A healthy construction backlog is enough contracted work—typically 8-12 months for commercial GCs and CMs—to keep core crews busy and overhead fully utilized without overcommitting resources. A healthy construction backlog is crucial for financial stability, as it ensures a steady stream of work and revenue, allowing companies to better navigate economic fluctuations and manage resources effectively. A healthy construction backlog indicates a steady stream of work and a likely ability to remain profitable in the near future, while a declining backlog may signal struggles securing new projects.
Contrast this with a large construction backlog: beyond 15-18 months, backlogs can create scheduling rigidity, client dissatisfaction, and exposure to project cost escalation. Is a large construction backlog bad? It can be—having an excessively long backlog can make it difficult to attract new clients, as potential clients may be deterred by long wait times, harming your company’s reputation. A construction backlog that is too small can indicate that contractors are running out of work and need to secure additional sources of future revenue, which can threaten financial stability.
Specialty trades with short-cycle work may target 4-8 months. Evaluate backlog quality as carefully as quantity—prioritizing well-funded owners, realistic project schedules, and construction projects matching your workforce and safety culture. ABC Carolinas can help member firms benchmark what healthy looks like through peer groups.
Contractors below the $100M threshold are underrepresented in data center work—only 7% currently under contract—but are essential to delivering these projects. Three primary roles are realistic for small- and mid-sized firms: specialty trade partners (MEP, fire protection, structural concrete, envelope, site/civil), joint-venture participants with larger data center GCs, and second-tier subcontractors working under national primes.
Treat data center readiness as a Q2-Q3 2026 priority. With Duke’s 10-year demand forecast locked in, the first objective isn’t winning the prime contract—it’s securing a place in the preferred vendor ecosystems of primes already active in Charlotte, the Triangle, and key South Carolina markets.
Mission-critical work—especially mechanical, electrical, plumbing, and controls—drives much of the value on data center construction projects. Electrical and mechanical contractors should pursue documented experience in redundant power systems, UPS and switchgear installations, chilled water systems, and building automation controls.
Build case studies around prior work in hospitals, labs, manufacturing clean rooms, or telecom facilities—these can be positioned as mission-critical adjacencies. ABC Carolinas education and safety programs strengthen mission-critical profiles: NFPA-70E electrical safety training, lockout/tagout programs, and advanced project management courses. Update marketing materials and QA/QC documentation to explicitly reference mission-critical capabilities.
Hyperscalers and colocation providers maintain strict prequalification processes for general contractors and key subcontractors. Identify 3-5 target primes building data centers in the Carolinas corridor and initiate prequalification conversations this quarter—before RFPs release.
Typical requirements include detailed safety metrics (TRIR, EMR), audited financial reports, bonding capacity, current backlog profile, project references, and evidence of robust QA/QC. Clear communication with clients, including providing regular updates and setting clear expectations, helps build trust and can lead to more consistent work opportunities. Use ABC Carolinas networking events, Excellence in Construction awards, and member directories to map which member firms are already on data center shortlists.
Data center owners scrutinize financial health due to large contract values, tight project timelines, and significant liquidated damages for potential project delays. Lenders, investors, and bonding companies use backlog figures to gauge a firm’s financial strength and creditworthiness.
Meet with your surety and banking partners to discuss increasing bonding capacity, improving working capital ratios, and stress-testing scenarios. Work in progress (WIP) reports are commonly used to evaluate the value of construction backlogs and track the total costs of partially completed projects. Investing in robust construction accounting software can be a prerequisite for moving into larger mission-critical work. Tighten change-order processes and subcontractor prequalification to demonstrate you can manage risk in high-documentation environments. ABC Carolinas’ Project Management Institute for Contractors aligns field operations with these financial controls.
Several ABC Carolinas member firms are already executing data center and mission-critical work regionally. Being honest about your capabilities and bandwidth is essential; overcommitting can lead to missed deadlines and dissatisfied clients.
Participate in ABC Carolinas peer groups focused on commercial construction to discuss prequalification, staffing, and supply chain management practices. The Future Leaders Exchange (FLEX) helps rising project managers build relationships with peers involved in hyperscale projects. Ask explicitly about typical schedule durations, commissioning processes, and common pitfalls. In an open, competitive market, smaller, high-performing merit shop firms win meaningful roles by delivering safely, ethically, and profitably.
Effective backlog management now differs sharply between data-center-exposed contractors and firms focused on traditional commercial work. For firms without data center exposure, a well-managed backlog depends on disciplined pursuit of core markets—K-12, healthcare, light industrial, public infrastructure—while avoiding underpriced work taken purely to keep crews busy.
Construction backlog can be measured in dollars and project volume, with some firms also calculating it based on available labor, as labor is a finite resource. All firms should use rolling 12-18-month backlog forecasts, updated monthly, to inform recruiting decisions, equipment purchases, and capital planning.
Utilizing technology, such as construction project management software, can streamline the process of finding and bidding on new projects. The value of construction software—both project management software and construction accounting software—lies in providing real-time backlog data, WIP visibility, and margin trends at the job and portfolio level. Regularly measuring and monitoring your backlog is crucial for maintaining a healthy pipeline of work, as it allows contractors to proactively identify trends and make informed decisions. ABC Carolinas training and construction safety, networking, and educational events around estimating, scheduling, and project controls help tighten construction backlog management practices.
Translate this into a 90-day action plan:
Assess your current projects, workload, and capacity by sector and owner type to identify strengths and gaps.
Examine your firm’s portfolio for experience that demonstrates mission-critical readiness, such as work in hospitals, labs, or advanced manufacturing.
Discuss bonding capacity and cash flow scenarios for larger work to ensure financial readiness for bigger projects.
Engage with peer groups, the Project Management Institute, or Excellence in Construction to expand your network and knowledge base.
Hold an internal “mission-critical readiness” meeting bringing together estimating, operations, safety, and finance to map what resource allocation and resource availability changes would be needed for a first data center package. Attend at least one ABC Carolinas networking or education event in Charlotte, Raleigh, Columbia, or Greenville this quarter.
As of early 2026, backlog growth is threatened by high financing costs and material price increases, forcing firms to balance workload with profitability. With the South leading backlog and Duke’s demand forecast locked in, there’s still time for smaller contractors to reposition and secure a healthier backlog for 2027-2028.
The April 2026 Construction Backlog Indicator shows a 10-month high, but that strength is concentrated among large, data-center-exposed firms. The current backlog reflects this reality: smaller contractors are not yet sharing equally in gains. Construction backlog refers to the total dollar value of contracted work awarded to a contractor but not yet completed or billed, serving as a critical indicator of future revenue—and that indicator now divides sharply by data center exposure.
The merit shop perspective matters here: open, competitive markets and performance-based selection give well-run small and mid-sized ABC Carolinas members a real opportunity to plug into the data center supply chain as trusted partners. Long-term success depends on positioning now.
Your call to action: Engage with ABC Carolinas peer groups, the Project Management Institute for Contractors, and the Excellence in Construction member network to connect with firms already delivering hyperscale work. Firms that begin repositioning their backlog and capabilities this quarter will capture a steady flow of new business through the second half of the decade. Those who wait risk being locked out of the fastest-growing segment of the construction economy.
Most commercial GCs and CMs in the Carolinas will want 8-12 months of forward backlog to maintain a steady revenue stream and keep core crews fully utilized. Specialty trades with shorter project cycles may operate comfortably with 4-8 months, depending on job duration and tolerance for financial strain. Contractors heavily exposed to mission-critical work may prefer longer, multi-year backlogs—but only if their balance sheet, bonding, and staffing can support it. Benchmark against similar ABC Carolinas member firms within peer groups rather than against national averages, which may not reflect your specific bidding process and market mix.
Prime data center contracts typically require a track record, but many second-tier roles do not. Primes often look for strong performance in hospitals, laboratories, advanced manufacturing, and other high-reliability environments. Position existing work as stepping stones, supported by strong safety metrics and QA/QC documentation. Start with smaller packages—sitework, structural concrete, steel erection, or specific MEP scopes—to build prospective customers’ confidence in your company’s ability to manage client relationships on mission-critical projects effectively before pursuing larger packages.
While large backlogs provide revenue visibility and help manage growth expectations, they increase exposure to raw material cost escalation, schedule liquidated damages, and owner-driven design changes. Concentration risk looms large: if one or two mega-projects dominate your backlog, delays or cancellations create significant financial strain. Balance mega-projects with more projects from steady, repeat clients in education, healthcare, and infrastructure to stabilize cash flow and maintain client deadlines across your portfolio.
Construction accounting software provides real-time visibility into WIP reports, job cost tracking, and backlog dashboards that connect contracted work to revenue forecasts. Project management software supports schedule integration, resource loading, and early warnings when crews are overcommitted. These tools turn backlog data into valuable insights for informed decisions—particularly important for firms entering fast-track work, where project managers need real-time visibility into total costs and progress on completion methods.
Three high-value offerings stand out: peer groups focused on commercial and industrial construction, where you can learn from firms already winning new projects, the Project Management Institute for Contractors for sharpening project controls that projects effectively demand, and Future Leaders Exchange for developing next-generation talent. Safety training, apprenticeship programs, and networking events support the deeper labor and relationship requirements of high-reliability work. Contact ABC Carolinas staff to connect with member firms already active in data centers for potential mentorship, joint ventures, or subcontracting relationships that deliver quality projects.
