The Associated General Contractors of America (AGC) released anew survey conducted between March 23-26 that examined the impact that the coronavirus pandemic is having on the construction industry.
AGC claims that 39% of the 1,640 contractors it surveyed reported delays or cancellations to current construction projects due to deteriorating economic conditions. In addition, only 18% of respondents had been ordered to halt work by elected officials, according to Ken Simonson, AGC’s chief economist.
The project cancellations are notable in light of recent AGC data that shows 42 states added construction jobs between February 2019 to February 2020. AGC officials warn that massive job losses in the construction industry will result 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 abrupt plunge in economic activity is taking a swift and severe toll on construction,” says Simonson. “The sudden drop in demand stands in sharp contrast to the strong employment levels this industry was experiencing just a few weeks ago.”
Other findings from the AGC survey included the following:
- 45% of respondents experienced project delays or disruptions;
- 23% of respondents reported shortages of materials, parts, and equipment, including vital personal protective equipment such as respirators;
- 18% of respondents reported shortages of craftworkers;
- 16% of respondents said projects were delayed by shortages of government workers needed for inspections, permits, and other actions;
- 13% of respondents said delay or disruption occurred because a potentially infected person had visited a jobsite;
- 35% of firms said suppliers had notified them or their subcontractors that some deliveries would be delayed or cancelled.
AGC officials say that Congress must do more to protect high-paying construction jobs. They also proposed measures such as new investments in infrastructure, relief from losses incurred on delayed or cancelled federal projects, and protections for multi-employer pensions.
“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,” says Stephen E. Sanders, AGC’s chief executive officer. “Construction workers and employers need more than a lifeline, they need a recovery plan.”
Source: AGC, www.agc.org.