Even though the US has deemed construction business to be essential to the economy even during the COVID-19 pandemics, the construction is slowing down across the US. Some cities and states have placed a halt on all construction work except for urgent modifications and work on public buildings. Although construction still has a green light to proceed with projects, it appears that project owners and investors are retreating due to the plunging economy.
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Construction Business is Slowing Down with the Plunging Economy
Chief economist at the Associated General Contractors of America, Ken Simonson, noted that the plunging economy is taking a toll on the construction industry in a swift manner while nearly 40% of contractors in the US are reporting to have the project owners canceling construction projects. It appears that project owners and investors are not directly concerned by the outbreak of COVID-19, but are rather worried about the abrupt economy plunge.
Construction Industry Sees a Dropping Demand in Only a Few Weeks
Only 18% out of halted construction projects stopped due to the government’s orders, the remaining delays and cancelations were initiated out of fear of the crippling financial crisis accelerating with the outbreak of COVID-19. As Simons from the Associated General Contractors of America cited, only a few weeks before this situation, the industry of construction noted strong employment levels. The current situation in the sector of construction is seeing a shortage of materials, supplies, labor, issues with supply chain, as well as canceled projects.
Retail Building, School Construction and Roadwork on an Indefinite Halt
Amidst shortages, cancellations and delays, North Texas construction work is also seeing delays in construction work due to the current situation. Over two dozen projects in the area have has been placed on hold, which includes retail building, construction work on schools, as well as roadwork.
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