Five Ways COVID-19 Has Impacted Construction Industry
Construction projects take a lot of planning. The industry has had to adjust and factor in many effects due to the COVID-19 pandemic.
With COVID-19 and the mandatory stay at home orders, people have been forced to stay in their homes more than ever before. It’s easy to see why some might decide that it’s a good time to invest in small renovations or tackle a much-needed construction project. The construction industry has definitely had to adapt with how they hold consultations with clients and even in terms of CDC compliance guidelines with the construction team overall.
1.) Face-to-Face Contact to Virtual Life:
The one major thing all industries across the board have had to cope with is the inability to meet in person. In the beginning most meetings had to be virtual but now with stay at home orders lifted , construction managers are able to coordinate meetings according to CDC guidelines. The switch to virtual meetings was definitely something different and hard to transfer to. Luckily, with construction software programs it allowed for the transition to virtual life to be easier and also can improve organization overall. Many construction software programs have allowed contractors to keep moving without having to meet in person. The software program has allowed for communication with all parties as well as organization of documents to keep things in the right direction. It’s easy to see why the pandemic has caused construction companies to switch their traditional methods to those online with the onset of virtual life.
2.) Fluctuations in Prices for Materials:
With travel restrictions and stay at home orders throughout 2020, there have been many differences in pricing for various materials. Normally construction companies would have a single supplier they would get materials from however now with the shift in higher prices many contractors have multiple suppliers to try to get the overall most reasonable prices. The price fluctuations being seen can affect builder budgets as well as the customer’s. The material whose cost has risen the most is definitely lumber. Due to the need to transport lumber across different locations in the U.S and the variance in state orders across the country this has caused a hike in prices. The price of lumber has seen an increase from 25% to 50% overall. This is a huge increase in terms of the normal 2 to 3% seen every year. The increase in materials could be potentially problematic for potential home builders so it’s important to have various options for suppliers.
3.) Compliance with CDC Guidelines:
In terms of work on the construction site, there are set rules for construction managers to make sure employees are being safe and adhering to social distancing guidelines. Some work can still be done however when it comes to being in people’s homes the risk is definitely higher and homeowner’s may not feel completely comfortable yet. The health risks can definitely cause project delays and may push the project back to completion in a few months. Even on construction sites , workers must still be six feet apart and have to disinfect and sanitize everything which can be lengthy and add time. Personal protection equipment must also be supplied by employers and construction companies to ensure they are taking the necessary safety requirements to protect their team.
4.) Supply Chain Issues:
While material costs have already been mentioned, the struggle with getting materials to the site on time has been a big issue during 2020. Shipping delays across the country have definitely had to be factored into contractors schedules. It’s recommended to stay on top of shipping updates and try to check orders weekly to see where the materials may be and if the team needs to plan another form of action. Many building materials are actually transported from China so there were definite delays with the onset of COVID-19 in early 2020. China’s manufacturing center for materials was completely halted with efforts to stop the spread of the virus.
5.) Large Staff Layoffs:
All across the U.S , companies have had to layoff employees during the pandemic due to the inability to traditionally work like old times. With construction companies, teams are usually pretty big so this industry has had to lay off quite a few workers to keep up with the economic impact of COVID-19. According to Associated General Contractors of America, ACG, about 40% of workers from this industry have been laid off. There were many projects that weren’t delayed but cancelled entirely resulting in a loss of income and way to support a full on staff. Back in April 2020, firms were required to cancel about 53% of projects across the board to adhere to guidelines.
The 247 PRO Construction Software allows for the ability to adapt to today’s times. With technology and the virtual world, having an online software that enables any easy way to communicate across all teams makes things easier and helps things to continue to flow in a construction project. The software drafts up project proposals and allows for you to send copies to your construction team and client without having to be in person. It also aids in allowing important papers and documents to not be lost in translation. The program is easy to use and you can schedule a free demo to get started.