The results of an August reader survey conducted by Construction Executive magazine, which is published by Associated Builders and Contractors, showed more than 85% of contractors who responded have been negatively affected by COVID-19, according to www.abc.org.
Factors contributing to the increased rate of postponement and/or cancellation of construction projects include supply chain disruptions, prolonged municipal permitting processes and delayed inspections because of office closures.
Although many contractors have not seen drastic effects on their businesses—in many areas, construction was considered “essential”—respondents are concerned about the long-term implications. Seventy percent of contractors do not expect the construction industry to stabilize until at least 2021, and 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 Construction Executive. “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.”
Although a boost in office renovations to meet social distancing guidelines and implement other COVID-19-related precautions was expected, more than 75% of respondents said they have not found this to be the case. It also was expected there would be a large increase in HVAC upgrade projects because of concerns regarding indoor air quality and proper ventilation, but only 31.79% of respondents said this was the case.
About 75% of contractors believe there will be more interest in construction education programs as people seek new types of work.
