{"id":1914,"date":"2021-07-02T06:44:31","date_gmt":"2021-07-02T13:44:31","guid":{"rendered":"https:\/\/constructonomics.com\/blog\/?p=1914"},"modified":"2021-07-02T06:44:32","modified_gmt":"2021-07-02T13:44:32","slug":"how-covid-19-will-impact-the-global-construction-industry","status":"publish","type":"post","link":"https:\/\/constructonomics.com\/blog\/2021\/07\/02\/how-covid-19-will-impact-the-global-construction-industry\/","title":{"rendered":"How Covid-19 Will Impact the Global Construction Industry?"},"content":{"rendered":"\n
There is hardly any industry around the globe that is not affected by the Coronavirus. In 2020, almost all commercial activities came to a halt for a while and badly affected the economy. The construction industry is no exception.<\/p>\n\n\n\n
Increased health risks that came along with COVID-19 worsened the productivity and efficiency in the construction sector. Falling revenue and disrupted supply chains increased challenges related to delivery and caused the industry\u2019s contraction in most markets.<\/p>\n\n\n\n
But, it is also said that construction has a strong potential to accelerate recovery due to its ability to create jobs. Also, the recovery measures will likely accelerate the industry\u2019s digital transformation. All in all, one thing is sure – the pandemic will affect the construction sector in more ways than one. Let\u2019s find out how and what changes should we expect for 2021:<\/p>\n\n\n\n
The construction industry is infamous for its bad safety track record at worksites all over the world. In 2019, about 20% of private worker fatalities<\/a> were in construction. Each year, the construction industry creates a new track record of workplace fatalities due to fewer safety measures taken on worksites.<\/p>\n\n\n\n However, after the pandemic, there is much spotlight on worker\u2019s health and safety in every industry as strict rules and regulations are in place. A lot of U.S. contractors responded to it by implementing new safety-related policies like temperature checks, staggered shifts, disinfection of tools, job sites, and machinery.<\/p>\n\n\n\n Fewer people on construction sites at a time will make it simpler for safety administrators, foremen, and site directors to monitor workers and guarantee that not just COVID-related but all safety guidelines are being followed while working. The pandemic will also drive safety administrators to incorporate training and upgrading of their safety programs and plans to manage any further pandemic or outbreak.<\/p>\n\n\n\n In 2020, when the COVID-19 outbreak was on peak, a lot of contractors were not able to get essential supply materials like cement, bricks, and sand along with tackling the challenges related to the labor shortage. In the UK, for example, a shortage of plaster nationwide resulted in a sharp increase in its price. Not just in the UK, the pandemic affected the global supply chain adversely, as the US-based construction firms source large quantities of these materials from China.<\/p>\n\n\n\n Because of the COVID outbreak in China, travel restrictions, and the closing of ports, the supply chain was disrupted in the US. The situation forced US-based companies to look for local manufacturers of products or in closeby countries like Mexico.<\/p>\n\n\n\n Since the concerns around sourcing materials continue, the construction businesses will probably look for permanent homegrown suppliers and try to maintain bigger inventories of basic materials to prepare for similar delays and disruptions in the future. Overall, making a supply chain that can adjust rapidly to connect with alternate suppliers will be key for construction businesses post-pandemic.<\/p>\n\n\n\n After the pandemic, there are now a limited number of individuals allowed on the worksite in many countries around the world. But, contractors have no choice rather than ensuring continuity of work which is only possible with the help of remote work technologies. This includes using video conferencing and construction project management software<\/a> to ensure that all the stakeholders can remotely manage and monitor the progress of multiple projects.<\/p>\n\n\n\n Other digital collaboration tools like BIM, 4D, and 5D simulators have also gotten a lot of traction in the pandemic and their use is expected to continue in the future as well. As a result, you can now expect improved collaboration among workers of a construction project which will ensure any changes in projects can be handled appropriately.<\/p>\n\n\n\n The COVID-19 pandemic will surely increase the demand for specific types of construction projects in the near future. For example, construction for medical supply production facilities, hospitals, and health care centers could grow. The demand of constructing new kinds of workplaces to shift from the previously well-known \u201copen-concept\u201d environment to a private and restricted environment for improving social distancing is also likely to grow.<\/p>\n\n\n\n As the U.S construction firms plan to overcome the supply chain disruption, the demand for warehouse, distribution, and manufacturing factories will surely grow in the future. On the other hand, the construction demand for retail, entertainment, and hospitality projects may become weaker. However, we are yet to see how the industry will manage these increased demands in tighter budgets due to weak economies around the globe.<\/p>\n\n\n\n