flexiblefullpage -
billboard - default
interstitial1 - interstitial
Currently Reading

Sharp jump in owners cancelling or delaying construction projects across the country, new survey finds

billboard - default
interstitial1 - interstitial
Coronavirus

Sharp jump in owners cancelling or delaying construction projects across the country, new survey finds

After 42 states added jobs in February, coronavirus is taking a swift and severe toll on the industry, prompting association officials to call for additional measures to help workers and firms recover.


By AGC | March 27, 2020

Courtesy Pixabay

Thirty-nine percent of contractors report that project owners have halted or canceled current construction projects amid deteriorating economic conditions, according to a survey released today by the Associated General Contractors of America. Association officials warned that these cancellations mean massive job losses are likely soon unless Congress passes targeted recovery measures to boost infrastructure funding, compensate firms for lost or delayed federally funded work and provide needed pension relief. The project cancellations are particularly severe in light of new data showing that 42 states added construction jobs through February.

“The abrupt plunge in economic activity is taking a swift and severe toll on construction,” said Ken Simonson, the association’s chief economist, noting that only 18% of respondents have been ordered to halt work by elected officials. “The sudden drop in demand stands in sharp contrast to the strong employment levels this industry was experiencing just a few weeks ago.” Click here for additional video comments from Mr. Simonson.

In the association’s latest online survey, conducted between March 23 and 26, 45% of the 1,640 respondents reported experiencing project delays or disruptions. Shortages of material, parts and equipment, including vital personal protective equipment for workers such as respirators, were reported by 23% of respondents. Eighteen percent reported shortages of craftworkers, while 16% said projects were delayed by shortages of government workers needed for inspections, permits and other actions. Thirteen percent said delay or disruption had occurred because a potentially infected person had visited a jobsite.

The survey also found that 35% of firms said suppliers had notified them or their subcontractors that some deliveries would be delayed or canceled, the economist added. He noted that only 22% reported similar supply chain challenges last week. That survey was conducted between March 17-19. However, 8% of firms did report they have added new work expanding health care and other facilities needed to respond to the growing health crisis.

In contrast to the rapidly deteriorating current market conditions, the association also released new construction employment data showing that most states – 42 – added construction jobs between February 2019 and February 2020. Industry employment declined over the year in eight states and the District of Columbia. From January to February, 37 states and D.C. added construction jobs, while 11 states shed jobs and two states had no change.

Association officials warned that while the coronavirus relief measure scheduled for a vote in the House today will provide some immediate help for construction workers and their employers, Congress must do more to protect high-paying construction jobs. They said new investments in infrastructure, relief from losses incurred on delayed or canceled federally funded projects and protections for multi-employer pensions will help the industry recover from the economic impacts of the pandemic.

“The steps firms are taking to protect workers from the coronavirus unfortunately won’t be enough to save many of them from the economic damage the pandemic is creating,” said Stephen E. Sandherr, the association’s chief executive officer. “Construction workers and employers need more than a lifeline, they need a recovery plan.”

View the state employment datarankings, and map. View AGC’s coronavirus resources and survey.

Related Stories

Coronavirus | Jan 20, 2022

Advances and challenges in improving indoor air quality in commercial buildings

Michael Dreidger, CEO of IAQ tech startup Airsset speaks with BD+C's John Caulfield about how building owners and property managers can improve their buildings' air quality.

Coronavirus | Jul 20, 2021

5 leadership lessons for a post-pandemic world from Shawmut CEO Les Hiscoe

Les Hiscoe, PE, CEO of Shawmut, a $1.5 billion construction management company headquartered in Boston, offers a 5-point plan for dealing with the Covid pandemic.

Resiliency | Jul 15, 2021

A new report urges federal investment in healthier buildings

The National Institute of Building Sciences also calls for code changes and greater cooperation between building owners and the AEC community.

Multifamily Housing | Jul 7, 2021

Make sure to get your multifamily amenities mix right

​One of the hardest decisions multifamily developers and their design teams have to make is what mix of amenities they’re going to put into each project. A lot of squiggly factors go into that decision: the type of community, the geographic market, local recreation preferences, climate/weather conditions, physical parameters, and of course the budget. The permutations are mind-boggling.

Multifamily Housing | Jun 30, 2021

A post-pandemic ‘new normal’ for apartment buildings

Grimm + Parker’s vision foresees buildings with rentable offices and refrigerated package storage.

Multifamily Housing | Jun 23, 2021

COVID-19’s impact on multifamily amenities

Multifamily project teams had to scramble to accommodate the overwhelming demand for work-from-home spaces for adults and study spaces for children. 

K-12 Schools | Jun 20, 2021

Los Angeles County issues design guidelines for extending PreK-12 learning to the outdoors

The report covers everything from funding and site prep recommendations to whether large rocks can be used as seating.

Coronavirus | May 17, 2021

Future pandemic preparedness at the medical district scale

The current COVID-19 pandemic highlights the concern that we will see more emergency events in the coming years.

University Buildings | Apr 29, 2021

The Weekly Show, April 29, 2021: COVID-19's impact on campus planning, and bird management strategies

This week on The Weekly show, BD+C Senior Editor John Caulfield interviews a duo of industry experts on 1) how campus planning has changed during the pandemic and 2) managing bird infestations on construction sites and completed buildings.

Multifamily Housing | Apr 22, 2021

The Weekly Show, Apr 22, 2021: COVID-19's impact on multifamily amenities

This week on The Weekly show, BD+C's Robert Cassidy speaks with three multifamily design experts about the impact of COVID-19 on apartment and condo amenities, based on the 2021 Multifamily Amenities Survey.

boombox2 -
native1 -

More In Category




Multifamily Housing

Make sure to get your multifamily amenities mix right

​One of the hardest decisions multifamily developers and their design teams have to make is what mix of amenities they’re going to put into each project. A lot of squiggly factors go into that decision: the type of community, the geographic market, local recreation preferences, climate/weather conditions, physical parameters, and of course the budget. The permutations are mind-boggling.

halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021

 


Magazine Subscription
Subscribe

Get our Newsletters

Each day, our editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Subscribe

Follow BD+C: