According to the latest survey by the Associated General Contractors of America (AGC), over half of US construction firms responding say they’ve experienced work stoppages as a result of owners halting or suspending projects due to effects of the coronavirus pandemic.
Over two thirds of respondents reported project delays and/or disruptions, and the most common reason was a shortage of personal protection equipment.
Ken Simonson, chief economist for Associated General Contractors of America (AGC), tells Jenny Lescohier of International Construction about these survey results and more in this podcast.
Simonson also reported that, despite the negative effects of the current crisis, there are some areas of construction that could see an uptick, including telecommunications and distribution. For remaining sectors, however, he says it’s likely to be a slow road to recovery.
While some have predicted pent-up demand to create a wave of construction activity once the economy opens back up, Simonson cautions that owners, no matter who they are, will likely experience a period of financial difficulty until revenues and demand rise back up.