As the Coronavirus pandemics is creating more cases of infected patients, the supply chain is also slowing down. This case is affecting numerous sectors, especially those that are tied to deadlines, which is the case with construction companies, i.e. builders. Although many projects in construction are still being worked on despite pandemics, builders are having trouble due to the late deliveries of raw materials for construction.
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Supply Chain is Slowing Down Bringing Construction Projects to a Pause
Many construction companies have done well with stockpiling materials for pending and active projects, however, if the Coronavirus crisis prolongs, developers and builders might have a hard time with delayed projects due to the supply chain slowing down to pandemics. The slowed-down supply chain business is also pushing governments towards delaying projects and seizing with construction work. Boston already stopped all construction projects with the exception of allowing housing work.
Investors Retreating from Commercial Real Estate
Not only that tenants and landlords are experiencing issues due to the Coronavirus outbreak, but investors are also retreating from the commercial real estate market. Delays also mean more risk for investors and lenders alike, so we are also seeing an increased level of caution at lenders as well. Lenders need to make sure that they won’t lose profit due to uncompleted and delayed projects, which is how active delays in the supply chain are affecting numerous sectors.
Shipments from China to Los Angeles Getting Late
According to the New York Times, shipment activities for relations China-Los Angeles, have slowed down by over 20% year-to-year. Late shipments include the delivery of copper and LED lights. All shipments might be late for at least 4 months. That means that construction companies would wait for materials for 6 months instead of 2 months. Other shipment and supply chain channels, such as those related to Italy, are also experiencing delays.
Photo by Andy Li on Unsplash
