As the toll of the coronavirus pandemic increases, 39% of contractors reported current projects have been halted or cancelled due to the crisis and economic fallout, according to an Associated General Contractors of America (AGC) survey.
The AGC survey was conducted March 23–26. Only 18% of respondents reported their work was halted by elected officials.
“The abrupt plunge in economic activity is taking a swift and severe toll on construction,” AGC Chief Economist Ken Simonson said in a statement.
The full impact the coronavirus pandemic will have on the construction industry is difficult to predict, but “it’s clear that it won’t be business as usual,” according to Dodge Data and Analytics. The economy was on solid footing just prior to the crisis.
“Initial planning projects in the commercial building sector have seemingly held up during the first week of major economic impact (March 15-21),” the firm stated in an analysis. “Heading into the crisis, the economy was also on solid footing with strong hiring and real estate fundamentals (such as vacancy rates and rents). This should insulate—at least in the short term—the commercial sector’s ability to initiate the planning process by entering projects into the construction pipeline.”
Fiscal stimulus will play a key role in determining the trajectory of the recession, Dodge stated.
“The effects will be felt strongly in the construction sector,” according to the analysis.
