The Associated General Contractors of America (AGC) issued the results of a survey Wednesday, tracking conditions for contractors amid the Covid-19 outbreak. The survey, conducted March 23 to 26, found that 39 percent of the more than 1600 respondents said they had been directed to stop work on one or more construction projects.
The AGC said that 45 percent of 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 percent of respondents. Eighteen percent reported shortages of craftworkers, while 16 percent 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.
“When projects shut down, jobs are lost not only in construction but also in a host of other industries, ranging from quarries to manufacturers, and truckers to professional services,” said AGC’s chief economist, Ken Simonson. “Investing in infrastructure now will bring these jobs back sooner and will buy a lot more construction while fuel and materials costs are low.”
AGC officials said that, considering that 39 percent of contractors have had at least one project canceled or delayed because of the coronavirus, construction spending is likely to decline for the foreseeable future. They added that firms will have a hard time continuing to pay current staff under these conditions and called on Washington officials to make new investments in infrastructure, provide relief from losses incurred on delayed or canceled federally funded projects, and pass protections for multi-employer pensions in order to help the industry recover from the economic impacts of the pandemic.
“The pandemic is prompting a collapse in demand for commercial construction, putting tens of thousands of jobs at risk,” said Stephen E. Sandherr, the association’s chief executive officer. “Congress and the administration must do more to make sure that efforts to flatten the curve don’t flat-line this industry and its millions of jobs.”