Thirty-nine percent of contractors report that project owners have halted or canceled current construction projects amid deteriorating economic conditions, according to a survey released today by the Associated General Contractors of America. Association officials warned that these cancellations mean massive job losses are likely soon unless Congress passes targeted recovery measures to boost infrastructure funding, compensate firms for lost or delayed federally funded work and provide needed pension relief. The project cancellations are particularly severe in light of new data showing that 42 states added construction jobs through February.
“The abrupt plunge in economic activity is taking a swift and severe toll on construction,” said Ken Simonson, the association’s chief economist, noting that only 18% of respondents have been ordered to halt work by elected officials. “The sudden drop in demand stands in sharp contrast to the strong employment levels this industry was experiencing just a few weeks ago.” Click here for additional video comments from Mr. Simonson.
In the association’s latest online survey, conducted between March 23 and 26, 45% of the 1,640 respondents reported experiencing project delays or disruptions. Shortages of material, parts and equipment, including vital personal protective equipment for workers such as respirators, were reported by 23% of respondents. Eighteen percent reported shortages of craftworkers, while 16% said projects were delayed by shortages of government workers needed for inspections, permits and other actions. Thirteen percent said delay or disruption had occurred because a potentially infected person had visited a jobsite.
The survey also found that 35% of firms said suppliers had notified them or their subcontractors that some deliveries would be delayed or canceled, the economist added. He noted that only 22% reported similar supply chain challenges last week. That survey was conducted between March 17-19. However, 8% of firms did report they have added new work expanding health care and other facilities needed to respond to the growing health crisis.
In contrast to the rapidly deteriorating current market conditions, the association also released new construction employment data showing that most states – 42 – added construction jobs between February 2019 and February 2020. Industry employment declined over the year in eight states and the District of Columbia. From January to February, 37 states and D.C. added construction jobs, while 11 states shed jobs and two states had no change.
Association officials warned that while the coronavirus relief measure scheduled for a vote in the House today will provide some immediate help for construction workers and their employers, Congress must do more to protect high-paying construction jobs. They said new investments in infrastructure, relief from losses incurred on delayed or canceled federally funded projects and protections for multi-employer pensions will help the industry recover from the economic impacts of the pandemic.
“The steps firms are taking to protect workers from the coronavirus unfortunately won’t be enough to save many of them from the economic damage the pandemic is creating,” said Stephen E. Sandherr, the association’s chief executive officer. “Construction workers and employers need more than a lifeline, they need a recovery plan.”
View the state employment data, rankings, and map. View AGC’s coronavirus resources and survey.
Related Stories
Coronavirus | May 28, 2020
Cushman & Wakefield report examines work-at-home pros and cons
The office, now part of a larger workplace ecosystem, still reinforces employees’ connections with their companies.
Coronavirus | May 27, 2020
Clean is the new Green as U.S. hospitality sector inches closer to reopening
Three design firms share their takes on what will make customers more comfortable about returning.
Coronavirus | May 26, 2020
Multifamily developers report mounting delays in permitting and starts due to coronavirus pandemic
More than half (53%) of multifamily developer respondents reported construction delays in the jurisdictions where they operate, according to the third edition of the National Multifamily Housing Council (NMHC) COVID-19 Construction Survey.
Coronavirus | May 26, 2020
9 tips for mastering virtual public meetings during the COVID-19 pandemic
Mike Aziz, AIA, presents 9 tips for mastering virtual public meetings during the COVID-19 pandemic.
Coronavirus | May 22, 2020
Designing a health facility for the next pandemic
Planning with intent is the key to readiness, states Eppstein Uhen Architects, the guide’s author.
Coronavirus | May 22, 2020
COVID-19: Healthcare designers look to the future of medical facilities in light of coronavirus pandemic
The American College of Healthcare Architects (ACHA) has released the key findings of a survey of its members revealing their insights on the future of healthcare architecture and the role of design in the context of the COVID-19 healthcare crisis.
Coronavirus | May 18, 2020
Will empty hotels provide an answer for affordable housing shortage?
A Los Angeles-based startup sees the Midwest as most fertile for adaptive reuse.
Coronavirus | May 18, 2020
Infection control in office buildings: Preparing for re-occupancy amid the coronavirus
Making workplaces safer will require behavioral resolve nudged by design.
Coronavirus | May 18, 2020
Global design firms collaborate on new COVID-19 mobile testing lab to bring testing to vulnerable communities worldwide
Perkins and Will, Schmidt Hammer Lassen Architects, and Arup Group develop scalable solutions for increased testing capacity within high-density and under-served neighborhoods.
Coronavirus | May 11, 2020
Experts offer a 13-point plan to reduce coronavirus deaths in nursing homes
Two nationally recognized experts in the design of senior living facilities offer a 13-point plan to protect our frailest citizens.