How the Coronavirus Pandemic Has Affected the Construction Industry in the United States

The spread of the coronavirus has led to uncertainty in every industry. Companies have had to swiftly change to a work from home system, while others had to shut down for a while. However, with  cases slowing down in the United States, the government is working towards opening up businesses once again.

One such industry that has been affected by this pandemic is the construction industry. In fact, the effects of this outbreak are predicted to last for the foreseeable future too.

Here’s what some experts have to say about the effects of COVID-19 on the construction industry:

Demand for housing and commercial real estate is uncertain

The economy as a whole has been struggling due to this pandemic. With only essential businesses in operation initially, other businesses struggled to cope without any revenue, leading to pay cuts and laying off employees. The sheer uncertainty of this time led to individuals and companies holding onto their cash, instead of spending or investing. As a result, the demand for housing and commercial property was low. However, we now seem to be in a stage of recovery, which has improved purchasing power across the board. The demand for real estate is expected to increase steadily in the coming months.

Project delays are to be expected

Two thirds of the construction industry is experiencing project delays due to COVID-19. These delays aren’t just a result of changed in the government’s rules and regulations, but delays in shipment and slower processes at every stage.

Construction companies might have to rely solely on local raw materials until things settle down in the future. The reliance on imports is risky since the economy isn’t doing too well and imports negatively impacts our balance of payments.

Changes in policies and SOPs are to be expected

With many construction companies easing their way back after a hiatus, changes in policies and SOPs is necessary. The health of workers is important and therefore, policies on social distancing and allowing a limited crew at a time is essential.

Companies operating in affected areas in particular have to take special measures to keep their employees safe. Special applications and software can be incorporated to improve the communication within teams so that social distancing can be maintained. Protective gear must also be provided, in addition to hand sanitizers and automatic soap dispensers.

One major drawback is lack of funds; get in touch with a reliable private lender for construction loans. Global Capital Partners Fund offers financing for construction of offices, retail property, industrial premises, and multi-family properties. They also provide hard money loans in Norfolk, VA. Contact their agents at +1-800-514-7350.

Categories: Real Estate

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