7 coronavirus-related construction challenges that will continue in 2021
The industry will start next year facing significant headwinds , economists and other experts predict .
Shelley D . Hutchins , LEED-AP
More than 10 months since the first coronavirus cases were reported in Wuhan , China , COVID- 19 ’ s global spread continues to plague commercial construction .
Since the pandemic hit the U . S ., contractors across the country have faced a range of obstacles including layoffs , project shutdowns and increased construction costs .
As 2020 comes to a close , economists and industry experts predict many of these issues will continue to challenge contractors . Here are the top seven factors to watch :
Labor shortage . Pre-pandemic , the industry faced a historic shortage of skilled labor and the issue isn ’ t going away just because COVID-19 has shut down projects and slowed others . Although firms have been calling back workers who were laid off in the spring , some have refused to return to work , citing a preference for unemployment benefits , virus concerns or family responsibilities .
Looking ahead to once a recovery begins , labor gaps might get even larger , especially in states like California , Texas and New York , according to Daniel Pomfrett , vice president of Los Angeles-based project management and cost consulting firm Cumming Corp . Lack of worker migration — especially to expensive markets with greater job opportunities like California and New York — also aggravates the labor shortage , Pomfrett said .
Shrinking backlog . Associated Builders and Contractors ’ Construction Backlog Indicator fell to 7.5 months in September , a decline of 0.5 months from August ’ s reading and 1.5 months lower than last year at this time . In addition , the association ’ s Construction Confidence Index readings for sales and profit margins also decreased .
The months ahead don ’ t look hopeful for contractors looking to add to their backlog of work , said ABC Chief Economist Anirban
OCTOBER 2020 • DITCHMEN 11