flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Construction activity in 2020 expected to drop steeply

Coronavirus

Construction activity in 2020 expected to drop steeply

[Dodge survey] Contractors girding for recession.


By John Caulfield, Senior Editor | April 22, 2020

Construction activities in several sectors are expected to take a big hit this year as a result of delays and shutdowns related to the COVID-19 virus spread. Image: Pixabay

Commercial construction starts are expected to fall by 16% in 2020, with retail starts projected to be down by 33% and hotel/motel starts by 31%.

That’s the grim outlook that Richard Branch, chief economist for Dodge Data & Analytics, foresees that reflects the current and potential impact of the coronavirus on North America’s construction industry.

Also see: The American department story was already in trouble. Then the virus hit.

“We are in recession. Full stop. No question about it,” asserts Branch. His forecast takes into account epidemiological assumptions that infections will peak in May and begin to subside in July. “What’s next is [figuring] out the depth of this recession and what a potential recovery looks like.”

 

[Construction forecast] Economic conditions blamed for project delays

A Dodge poll of 172 contractors across the country, conducted from March 19-31, found that close to two-thirds of respondents were worried about recession. Sixty-seven percent of contractors said they were experiencing project delays, and of that total, 38% blamed “worsening economic conditions.” Almost half (47%) expected their businesses to be “highly impacted” by the virus’s spread within the next three months, including the fear among 55% of contractor respondents that their workers might be more susceptible to COVID-19 infection.

 

Richard Branch, Dodge Data & Analytics' chief economist, says construction is already in a recession. Image: Dodge Data & Analytics

 

Also see: Construction employment declines in 20 states and DC in March

A silver lining to this health crisis could be pent-up demand. Dodge, which tracks construction work around the country, estimates that more than 200,000 projects were in preplanning or planning stages as of March 30. But fewer than 17,000 public projects were actively bidding as of April 2.

 

[Construction forecast] Homebuilding also looks precarious

Dodge Data & Analytics also projects that residential construction would be off by 13% this year, which augurs bad news for the rest of 2020, considering the Census Bureau’s preliminary estimate for March housing starts, which at a seasonally adjusted annual rate of 1.216 million units was down only 1.4% from the same month in 2019.

Also see: Multifamily market flattens as construction proposal activity sinks

Related Stories

Augmented Reality | Jan 27, 2023

Enhancing our M.O.O.D. through augmented reality therapy rooms

Perkins Eastman’s M.O.O.D. Space aims to make mental healthcare more accessible—and mental health more achievable.

K-12 Schools | Nov 30, 2022

School districts are prioritizing federal funds for air filtration, HVAC upgrades

U.S. school districts are widely planning to use funds from last year’s American Rescue Plan (ARP) to upgrade or improve air filtration and heating/cooling systems, according to a report from the Center for Green Schools at the U.S. Green Building Council. The report, “School Facilities Funding in the Pandemic,” says air filtration and HVAC upgrades are the top facility improvement choice for the 5,004 school districts included in the analysis.

Giants 400 | Nov 14, 2022

4 emerging trends from BD+C's 2022 Giants 400 Report

Regenerative design, cognitive health, and jobsite robotics highlight the top trends from the 519 design and construction firms that participated in BD+C's 2022 Giants 400 Report.

Healthcare Facilities | Jun 20, 2022

Is telehealth finally mainstream?

After more than a century of development, telehealth has become a standard alternative for many types of care.

Coronavirus | May 20, 2022

Center for Green Schools says U.S. schools need more support to fight COVID-19

  The Center for Green Schools at the U.S. Green Building Council released a new report detailing how school districts around the country have managed air quality within their buildings during the second year of the COVID-19 pandemic.

Industry Research | Mar 9, 2022

Survey reveals five ways COVID-19 changed Americans’ impressions of public restrooms and facilities

Upon entering the third year of the pandemic, Americans are not only more sensitive to germs in public restrooms, they now hold higher standards for the cleanliness, condition and technology used in these shared spaces, according to the annual Healthy Handwashing Survey™ from Bradley Corporation conducted in January. 

Codes and Standards | Feb 21, 2022

New standard for ultraviolet germicidal irradiation

The Illuminating Engineering Society (IES) recently introduced the standard, ANSI/IES RP-44-21 Recommended Practice: Ultraviolet Germicidal Irradiation.

Coronavirus | Jan 20, 2022

Advances and challenges in improving indoor air quality in commercial buildings

Michael Dreidger, CEO of IAQ tech startup Airsset speaks with BD+C's John Caulfield about how building owners and property managers can improve their buildings' air quality.

Coronavirus | Jul 20, 2021

5 leadership lessons for a post-pandemic world from Shawmut CEO Les Hiscoe

Les Hiscoe, PE, CEO of Shawmut, a $1.5 billion construction management company headquartered in Boston, offers a 5-point plan for dealing with the Covid pandemic.

Resiliency | Jul 15, 2021

A new report urges federal investment in healthier buildings

The National Institute of Building Sciences also calls for code changes and greater cooperation between building owners and the AEC community.

boombox1
boombox2
native1

More In Category


MFPRO+ Special Reports

Top 10 trends in affordable housing

Among affordable housing developers today, there’s one commonality tying projects together: uncertainty. AEC firms share their latest insights and philosophies on the future of affordable housing in BD+C's 2023 Multifamily Annual Report.



halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021