More than 85% of contractors have been negatively impacted by COVID-19, according to the results of an August reader survey conducted by Construction Executive magazine, which is published by Associated Builders and Contractors. Supply chain disruptions, prolonged municipal permitting processes and delayed inspections due to office closures are all factors contributing to the increased rate of postponement and/or cancellation of construction projects.
While many contractors have not yet seen drastic impacts to their business, as construction was in many areas considered an “essential” service, the long-term implications are concerning. Seventy percent of contractors did not expect the construction industry to stabilize until at least 2021, while an additional 10.4% say they believe it may never reach pre-pandemic levels.
“While the survey respondents’ concerns about market viability and the health fears of the virus itself will remain in place for the duration of 2020 and into next year, contractors did report bright spots, such as a widespread adoption of technology after the outbreak of COVID-19,” said Lauren Pinch, editor-in-chief of CE. “That said, as the pandemic continues to change the landscape of the U.S. construction industry and state and local economies, contractors are continuously trying to assess the near- and long-term effects.”
While an uptick in office renovations to meet social distancing guidelines and to implement other COVID-19-related precautions was expected, more than three-quarters of respondents (76.12%) stated that they have not found this to be the case. Concerns over indoor air quality and proper ventilation may have also led people to believe there would also be a large increase in HVAC upgrade projects, but only 31.79% of respondents stated that this was the case.
Looking toward economic recovery, three-quarters of contractors believe that there will be more interest in construction education programs as people seek out new types of work. Specialty trades, apprenticeship programs, project management training and more tech-focused construction jobs were all listed as areas that contractors believe will see high levels of interest.
Read more about the survey results at ConstructionExec.com and subscribe to CE This Week for the latest news, market developments and business issues impacting the construction industry.
Related Stories
Market Data | Aug 3, 2020
Construction spending decreases for fourth consecutive month in June
Association officials warn further contraction is likely unless federal government enacts prompt, major investment in infrastructure as state and local governments face deficits.
Market Data | Aug 3, 2020
6 must reads for the AEC industry today: August 3, 2020
The future is a number game for retail and restaurants and 5 reasons universities are renovating student housing.
Market Data | Jul 31, 2020
5 must reads for the AEC industry today: July 31, 2020
Vegas's newest resort and casino is packed with contactless technology and Mariott, Hilton, and IHG dominate the U.S. hotel construction pipeline.
Market Data | Jul 30, 2020
Marriott, Hilton, and IHG continue to dominate the U.S. hotel construction pipeline at Q2’20 close
Hilton’s Home2 Suites and IHG’s Holiday Inn Express continue to be the most prominent brands in the U.S. pipeline.
Market Data | Jul 30, 2020
7 must reads for the AEC industry today: July 30, 2020
Millennium Tower finally has a fix and construction costs decrease for the first time in 10 years.
Market Data | Jul 29, 2020
62% of metros shed construction jobs from June 2019 to June 2020 as Association calls for new infrastructure funding, other relief steps
New York City and Brockton-Bridgewater-Easton, Mass. have worst 12-month losses, while Austin and Walla Walla, Wash. top job gainers.
Market Data | Jul 29, 2020
6 must reads for the AEC industry today: July 29, 2020
The world's first net-zero airport and California utility adopts climate emergency declaration.
Market Data | Jul 28, 2020
For the fourth consecutive quarter, Los Angeles leads the U.S. hotel construction pipeline at the close of Q2’ 20
New York City continues to have the greatest number of projects under construction, with 106 projects/18,354 rooms.
Market Data | Jul 28, 2020
6 must reads for the AEC industry today: July 28, 2020
St. Petersburg Pier reconstruction completes and post-pandemic workplace design will not be the same for all.
Market Data | Jul 28, 2020
Senate Republicans' coronavirus relief measure includes provisions that will help hard-hit construction firms recover
The HEALS Act includes essential liability, workforce, financial & unemployment reforms, but association will work to get needed infrastructure investments included in final relief measure.
