Companies continue to be affected by COVID-19 Time:2020/11/06 00:00:00 Hit:50
Recent survey results from the Associated General Contractors of America show construction companies are experiencing a second wave of effects on their business operations caused by the COVID-19 pandemic, according to www.constructiondive.com.
Three quarters of contractors surveyed said they had projects delayed or cancelled completely—up from 60% in August and 32% in June—and only 23% reported they are working on new or expanded jobs.
“The survey results make it clear that the months-long pandemic is undermining demand for projects, disrupting vital supply chains and clouding the industry’s outlook,” said AGC Chief Economist Ken Simonson.
The outlook comes after various high-profile, billion-dollar construction projects shut down before completion as the pandemic and the government response to it continue.
“I certainly think that the green light, yellow light, red light nature of re-openings is very tough on making long-term investment decisions, like a gigantic, multibillion dollar chemical plant or a public facility,” Simonson said. “All of those things, I think, are causing investors reason to pull back on future construction and say we’re going to postpone until we’re sure that the economy is really recovering on a sustained basis.”
The results were worse for the biggest contractors; Simonson said 88% of firms with revenues of $500 million or more reported postponed or cancelled projects, but only 73% of firms with revenue of $50 million or less reported the same. Additionally, severe material shortages and supply chain issues are creating delays on projects; 78% percent of survey respondents said they were experiencing delays in ongoing jobs—up from 57% in June.
Although a boom in residential construction has led to a rise in overall construction employment numbers, Simonson said that masks the decline in nonresidential jobs. He said it could take some time before construction returns to normal, even after a vaccine is in place.
Original Information Resources: https://www.nrca.net/RoofingNews/
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