The recent outbreak of COVID-19 has had a negative impact on almost every industry around the world. And while governments and industries are working hard to overcome these problems, much more needs to be done.
At this worrying time, the construction industry is more important than ever. From helping to build hospitals within a few days to donating lifesaving equipment, the construction industry has had a major role in reacting to the coronavirus pandemic and, we expect to see it to play a huge role in the recovery too. If you want to know more about the effect that COVID-19 has had on the construction industry and what the future for the industry looks like, then keep reading below.
How Has COVID-19 Affected the Construction Industry?
Here are some of the ways in which the COVID-19 pandemic has negatively impacted the construction industry:
- Many construction sites were forced to close down for a number of weeks – this has led to a number of workers losing their jobs and to some sites being closed for good.
- Sites which have re-opened are struggling to get the supplies they need.
- People working in the construction industry have had to find new ways to work – new rules and regulations were put in place to protect the health and safety of employees during the COVID-19 pandemic. Construction companies have always had to put a strong emphasis on safety, as working in construction is one of the riskiest jobs in the US. But this is even more crucial now as businesses are having to adjust to a new ‘normal’ way of working.
- The financial indexes – the construction, engineering and building industry indexes dropped considerably over the last few months.
How Construction Companies Should React to the Pandemic
If we look at the financial crisis of 2008, the companies who came out on top typically moved hard and fast in terms of:
- Reallocating resources
- Putting plans in place for the future
- Increasing productivity
- Reducing costs
- Investing money in technology
- Differentiating their offerings and portfolios
- Tidying up their balance sheets.
In order for a business to succeed after the coronavirus pandemic, they need to think carefully about their future. It’s unlikely that we’ll see businesses in the construction industry return to normal quickly as there are a number of changes that need to be made before this can happen. Instead, leaders need to work out and prepare for the future of the construction industry after the crisis. This means they have to find new ways of working.
What’s Next for the Construction Industry?
Don’t be under the impression that it’s all doom and gloom for the construction industry. In actual fact, we believe that construction companies can expect a mixed future ahead. Some of the ways the coronavirus pandemic will affect the construction industry over the next few years include:
- Some construction sites will close
- Supply chains may be disrupted
- Projects may be delayed
- Source tightening may become more common
Some of the positives we expect to see in the construction industry over the next few years include:
- The majority of construction companies expect their capital spend in 2021 to be lower than it was in 2019, so this reduction is here to stay
- Almost 81% of construction business owners also believe that there will be an economic rebound before the end of 2020
- New plans are being put in place to boost the construction industry and create jobs
The COVID-19 pandemic has had a terrible impact on the construction sector, but it’s by no means the worst hit industry in the world. Looking to the future of construction, plans are being created to help push projects forward and increase the number of affordable houses available to people who need them. These plans will help the construction industry recover more quickly. Overall, the outlook for construction has deteriorated sharply, but infrastructure resilience points in the shape of the recovery.