More than a quarter of construction firms responding to an online survey conducted by the Associated General Contractors of America last week reported they had furloughed or terminated jobsite workers because of the coronavirus pandemic. The finding contrasts starkly with the association’s analysis of government data released today that showed a majority of the nation’s metro areas added construction jobs through February.
“The metro-level employment data show that construction was still growing strongly in many parts of the country in February, immediately before the pandemic forced contractors to shut down projects and lay off workers,” said Ken Simonson, the association’s chief economist. “In contrast, our survey, completed less than a week ago, found that a majority of respondents had been told by owners or government agencies to cease work.” Click here for additional video comments from Mr. Simonson regarding last week’s survey.
Simonson added that 27% of respondents to the survey reported they have furloughed or terminated construction workers. In addition, 55% of the firms said they had been directed to delay or cancel projects by their clients, while 26% reported they had been directed to stop construction activities by government officials. The survey was conducted from March 30 through April 2 and drew 1,294 responses.
The association’s analysis of metro employment data showed that construction employment increased between February 2019 and February 2020 in 217 (61%) of metro areas, declined in 89, and held steady in 52. The Dallas-Plano-Irving, Texas metro added the most construction jobs over 12 months (12,000 jobs, 8%), while the largest percentage increase occurred in Walla Walla, Wash. (22%, 200 jobs). The Orange-Rockland-Westchester, N.Y. area lost the most construction jobs over the year (-4,400 jobs, -10%). The largest percentage decline occurred in Danville, Ill. (-20%, -100 jobs).
Association officials said the new February metro employment data, when compared to the recent survey results, demonstrates how quickly construction market conditions have deteriorated because of the coronavirus pandemic. They urged federal officials to begin crafting measures to support the post-pandemic recovery, including funding new infrastructure investments, compensating contractors for cancelled or delayed federal projects and supporting hard-hit pension plans many construction workers rely on for health and retirement benefits.
“The deterioration of the construction market in many parts of the country has been both swift and severe,” said Stephen E. Sandherr, the association’s chief executive officer. “Unless Washington officials begin crafting a comprehensive recovery plan that includes measures to help the industry, the industry will continue to suffer even after the pandemic passes.”
View AGC’s coronavirus resources and survey. View comparative data here. View the metro employment data, rankings, top 10, and map.
Related Stories
Coronavirus | Apr 30, 2020
Gilbane shares supply-chain status of products affected by coronavirus
Imported products seem more susceptible to delays
Coronavirus | Apr 26, 2020
PCL Construction rolls out portable coronavirus testing centers
The prefabricated boxes offer walk-up and drive-thru options.
Coronavirus | Apr 23, 2020
It's time to make your back-to-the-office plan
Here are some practical, tactical considerations for reuniting.
Coronavirus | Apr 22, 2020
Architecture Billings Index points to major downturn in commercial construction
Largest monthly decline in billings a direct result of pandemic response.
Coronavirus | Apr 22, 2020
Construction activity in 2020 expected to drop steeply
[Dodge survey] Contractors girding for recession.
Coronavirus | Apr 21, 2020
COVID-19 update: CallisonRTKL, Patriot, PODS, and USACE collaborate on repurposed containers for ACFs
CallisonRTKL and PODS collaborate on repurposed containers for ACFs
Coronavirus | Apr 20, 2020
Virtual site visits help control infection on project sites
As COVID-19 threatens to slow construction work, point cloud technology helps us work safer and faster.
Coronavirus | Apr 19, 2020
IoT system helps contractors keep their distance on the jobsite
Triax Technologies’ wearable Proximity Trace device can be used for contact tracing.
Coronavirus | Apr 19, 2020
A COVID-19 task force focuses on crisis communications
The Castle Group is partnering with leading health experts to help companies factor science and medicine into their response messaging and actions.
Coronavirus | Apr 17, 2020
NMHC Multifamily Construction Survey shows significant delays in apartment construction
Survey asked construction firms how the spread of COVID-19 is affecting construction permitting, starts, completions, materials and labor.