Share this on FacebookApril 16th, 2020 | Published by NEW Construction Alliance
A recent article from Yahoo! Finance points out that despite construction being deemed an “essential service” in all but six states with stay-at-home orders in place and the industry successfully instituting strong safety measures to keep all involved safe, the industry is taking a big hit nonetheless.
Any thriving economic system—micro or macro—is dependent upon producers and consumers. The current stay-at-home orders have effectively eliminated the consumer side of our industry to potentially disastrous results.
According to a survey cited in the article, “27% of contractors said a municipal, state or federal government had ordered them to halt or cancel construction projects.”
The article cites a Meyers Research survey of 300 homebuilding division executives who said “23 percent of contractors” have already had such troubles and “80 percent…expect to face shortages in the next few months”
According to the story, the pandemic is exacerbating the already severe skilled labor shortage within our industry. Then there are the concerns about the inevitable delay between the end of the quarantine and the return to normal.
“You are going to see a big dip in new projects. All of our projects are all on hold,” Doug Brien, co-founder and CEO of California-based MYND Property Management stated in the piece.
With news today that Governor Tony Evers is attempting to extend the Stay-at-Home order through May 2020, these indicators require construction industry leaders to consider the long-term impact this will have on their businesses if it goes through.
If you feel that such a decision will do irreparable harm to your business, then you might consider reaching out to your elected leaders, associations and other group representatives to make sure your voice is heard on the matter.
Without clear, unequivocal opposition to such a decision, it is likely things will get a lot worse for our industry before it gets better.
You can read the entire Yahoo! Finance article here.