Over the past few months, there has been a significant amount of turmoil in the construction industry. Even before the COVID-19 pandemic crisis, spending in this space had dropped to some degree in February. While not all projects have come to a standstill, the hard-hit regions have now started shutting down sites. Slowly but surely, cancellations and project delays are on the rise.

Construction Will Also Become Impacted by the COVID-19 Crisis

Most sub-sectors within the construction industry would be impacted by the widespread shutdowns that are in place to curb the spread of COVID-19. Well before the crises billowed and got out of control, there had been a downtrend in spend, and most projects and companies had been moderating spending.

This trend was noticeable both in the nonresidential and residential segments. As mentioned earlier, not all projects have been stalled entirely, but the areas that have been hard hit are now either starting to shut down sites or have already shut them down completely.

Areas Where Construction Projects Have Been Affected  

State and local authorities are announcing directives regarding what can be considered essential or non-essential. Whether projects can continue or not, would depend entirely on the government's decision about whether they put construction under the "essentials" category. Here is a look at what’s happening in the construction industry in some of our major cities:

• Currently, most projects in Washington, Vermont, Pennsylvania and New York have been halted, but there are mixed directives about the work stoppage on the local level.
• With some exceptions, lawmakers in California and Illinois have added construction to the “essentials” category.
• Construction projects have been shut down entirely in Boston, and most other areas in Massachusetts have done the same since. For instance, officials in the bay area have permitted the continuance of some residential projects while specific large-scale commercial projects have been paused.
• Construction on SoFi Stadium in Los Angeles continues (This is the NFL’s Chargers and Rams’ future home.)
• Some mega-projects in Florida, like the Virgin Trains high-speed rail, the I-4 Ultimate Improvement project continue unabated.
• In Nevada, production at many construction projects continues with strict social distancing protocols in place, but labor continues to be an issue.

Even the projects that are permitted to continue may experience an indirect impact. While some construction materials, equipment, and parts are sourced from national companies, others come from abroad. Many countries across the world have shuttered factories to contain the pandemic.

The Construction Industries’ Labor-Related Woes

Even in areas where the government still permits construction, workers are finding it challenging or even impossible to be at the job site on time due to transportation halts or disruptions. The shortfall of skilled labor has been a persistent problem for the construction industry.

The quarantine requirements and, as mentioned, a decline in transportation options have added fuel to the fire. Also, an increasing number of projects in the final planning or bidding stages have been either canceled or delayed due to uncertainty around how rapidly the US economy will recover.

At sites where construction continues, the workers follow strict safety precautions, including the use of protective gear.  Since many projects are mostly outdoors, it becomes easier to follow social distancing rules (although project managers limit the number of contractors on specific sites at a given time).

Currently, the construction industry, like many others, has been hard hit by the coronavirus pandemic. But, it is still necessary for operators in this sector to keep their equipment in good condition so that when things get back to normal, and construction is restarted, they would be able to move back into gear quickly without having to worry about dysfunctional equipment.