The nation’s contractors are growing concerned as shrinking
demand and disrupted operations drag down business.
A new survey from the Associated General Contractors of
America released today reveals that three-quarters of contractors report having
a scheduled project postponed or canceled.
The numbers are up from the 60 percent of contractors who
reported a canceled project in August and 32 percent who did so in June.
Meanwhile, only 23 percent of contractors report working on
new or expanded construction projects as a result of the pandemic, about the
same percentage as in June.
“The survey results make it clear that the months-long pandemic is undermining demand for projects, disrupting vital supply chains and clouding the industry’s outlook,” said Ken Simonson, the association’s chief economist.
“Without new federal relief measures, these challenges pose
a significant threat to current construction employment levels.”
The coronavirus is also disrupting projects that are still
underway, Simonson noted.
Seventy-eight percent of respondents report they are currently
experiencing project delays or disruptions, up from 57 percent in June.
In particular, 42
percent of firms are experiencing disruptions due to a shortage of construction
materials, equipment or parts. In addition, 35 percent are experiencing disruptions
because of a shortage of craftworkers and/or subcontractors.
In one bit of good
news, however, only seven percent of firms are experiencing disruptions because
of a shortage of personal protective equipment.
Thirty-four percent of respondents report they do not expect
their firm’s volume of business will return to pre-pandemic levels for at least
a year.
According to the report, 30 percent of firms have already
furloughed or terminated employees because of the coronavirus.
New York City has lost 19,500 construction jobs in the last
12 months, according to the AGC, second only to Houston, TX, where 24,400 jobs
have been shed. Other hard hit areas
include Brockton, Mass. followed by Altoona, Pa.
According to Simonson, a majority of firms plan to cut jobs
or abstain from adding new employees during the coming year.
Most firms who took part in the survey are looking for new
federal relief measures to mitigate against the impacts of the coronavirus.
Among the measures firms are hoping Washington officials will enact are new federal investments in infrastructure, liability reforms that protect responsible firms from frivolous coronavirus suits and a new highway and transportation bill.
Association officials have urged Congressional leaders to
recall legislators right after the election to pass new coronavirus relief
measures. In particular, the construction officials called on Congress to back new infrastructure investments, liability
reforms and an additional round of Paycheck Protection Program loans.
“As our survey shows, the pandemic and efforts to mitigate
its spread have deeply wounded the economy, depressing demand for many types of
commercial construction projects,” said Stephen E. Sandherr, the association’s
chief executive officer.
“Congress can end the downward economic slide and help
create needed new construction jobs by passing measures to boost demand and
protect honest employers.”
