“ Despite the lingering pandemic , the global economy has been recovering , increasing demand for key commodities ,” he said . “ Rapid viral spread , including in Europe and parts of North America , render materials shortages more likely during the winter months .”
Some contractors are taking proactive steps to expand their supplier network as well as buying hedges on some materials to protect from upward price swings , according to Joe Natarelli , leader of the national construction industry practice at accounting firm Marcum .
Supply chain issues .
“ Production is getting back to where it was internationally ,” Pomfrett said , “ but the strain on supply chains and how to get materials and equipment delivered remains .”
Natarelli said his clients are building resiliency into their supply chains so that they ’ re not beholden to a single supplier for any one material .
“ The days of having one material supplier are gone ,” he said . “ We ’ re seeing clients setting up three separate suppliers , in different geographic locations , where in the past they may have had just one or two . Some are even getting as many as five in place .” challenges facing contractors right now . A report from the Brookings Institution projects that state and local government revenues will decline $ 155 billion in 2020 , $ 167 billion in 2021 and $ 145 billion in 2022 — about 5.5 %, 5.7 % and 4.7 %, respectively — excluding the declines in fees to hospitals and higher education .
This means that state agencies such as departments of transportation have less money to fund infrastructure initiatives like roads , bridges and transit projects . Many will look to the federal government for additional revenue .
At the New York Metropolitan Transportation Authority , some upcoming projects are in limbo as the authority awaits word on whether it will receive federal funding in addition to the $ 3.8 billion it received in April under the Coronavirus Aid , Relief and Economic Security Act . Industry estimates show that even with the CARE Act funds , the MTA faces at least an $ 8.5 billion shortfall for 2020 and 2021 .
“ MTA ’ s financial position has eroded dramatically ” since the outbreak began , Janno Lieber , MTA chief development officer said this summer , noting that the authority is losing about $ 800 million a month in revenue due to the crisis .
Plus , the pandemic caused a decline in shipping as well as air travel , which means less air freight gets moved so even the reduction in moving materials across state lines has caused issues , he said .
Diminished state and local government revenues . Basu said this is one of the top
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