Contractor Confidence Climbs in June Amid Data Center Boom

Contractor confidence is trending upward, according to a recent report in HVAC/P Industry News highlighting data from Associated Builders and Contractors (ABC). ABC’s Construction Backlog Indicator rose to 8.7 months in June 2025, reflecting a 0.3-month gain over the previous year. Large contractors saw the biggest growth, with nearly two months added to their backlog compared to June 2024.

Confidence in sales and profit margins also improved, though staffing expectations dipped slightly. All three indicators remain above 50, signaling continued growth over the next six months.

ABC Chief Economist Anirban Basu credited the resilience in backlog to surging data center construction—1 in 7 ABC members is currently working on a data center project.

However, Basu warned that new tariffs are already disrupting projects, with 1 in 5 contractors reporting interruptions in June. Rising input costs tied to trade policy may pressure profit margins moving forward.