new survey shows covid-19 impact on construction projects

Just under 40 percent of construction companies in a new survey say they have been impacted enough by the COVID-19 outbreak to have to lay off employees.

Those layoffs, according to the survey conducted by the Associated General Contractors of America, are in response to projects being delayed or cancelled because of the virus.

“Owners are not only halting many current construction projects, but are also cancelling a growing number of projects that have not yet started,” noted Ken Simonson, the chief economist for the AGC.

Simonson continued: “Inevitably, that has caused a growing number of contractors to furlough or terminate jobsite workers.”

The survey also indicated that 53 percent of responding firms were prompted to cancel ongoing projects, or projects that were scheduled to launch in the next month.

In addition, around 39 percent of respondents said they were contending with delays or disruptions of projects due to a lack of personal protective equipment for workers.

A smaller 23 percent noted that they were also challenged by a shortage of construction materials as well as equipment and parts.

In an effort to maintain their payrolls, some 60 percent of the respondents said they had already applied for loans through the federal government’s Paycheck Protection Program, or intended to soon do so.

According to a separate survey published by the site Construct Connect, just under 3,200 construction projects nationally have now been delayed since the COVID-19.
The state with the largest number of cancellations is New York at 300, followed by California with 271, and Texas with 207.
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Arizona is reporting the cancellation of 34 projects, with Colorado seeing 82 projects halted. A smaller 16 have been cancelled in New Mexico.

By Garry Boulard

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