According to the IMF’s latest report, the US economy is forecasted to shrink by nearly 6%, specifically predicting a drop of 5.9% for 2020. At the same time, other countries such as the UK and Italy are also forecasted to go through a decline in the economy by 14% and 9.5%. The last year’s report on construction predicted 0.5% for 2020 mostly due to the strained relations between China and the US, so with the latest changes in predictions due to the COVID-19 pandemics, what is next for construction in 2020?
Table of Contents
2020 Growth in the US Construction Industry
As Forbes reports, an executive survey conducted by McKinsey states that the output in construction in 2020 could range from zero to -8%. The output percentage according to the survey depends on the level of severity when it comes to the outbreak of the COVID-19 virus. Associated General Contractors of America, as well as Procore company, are predicting that the countries and areas that saw the greatest shutdowns of construction sites and decline in construction activity during pandemics, should experience a long-term disruption in construction activity. New York, for instance, had seen a decline of 80% in construction activity. Besides, 800 construction companies in the US were surveyed, out of which only two-thirds are actively involved in construction projects in the second phase of the COVID-19 fallout.
What Can the Industry of Construction Expect in the Second Phase of Pandemics
In the US and Canada, according to the latest survey conducted by Procore, 46% of capital improvement projects are placed on hold with 37% of ground-up projects also placed on a halt. Following the survey, the construction sector could see a reduction in projects in 2020 by 32% in comparison to former forecasts for the present year.
