RESULTS BY INDUSTRY
Construction
Construction sites are active as contractors work through current and backlog projects; still, only a small
number (5%) have seen an increase in business, with 28% saying their business is about the same. 67%
report slowdowns, with 11% saying they’ve experienced a steep decline. Many projects are being scaled
back from their original scope, and others have been postponed or cancelled. The biggest uncertainty
for many is the future pipeline, and some respondents report they’re bidding on projects they would not
be in normal circumstances.
The vast majority of construction industry participants (88%) indicate they were able to secure a PPP
loan, but many report being forced to scale back business operations to align with a diminished
workload and uncertain pipeline. Looming questions about PPP loan forgiveness plague respondents as
well, with 46% saying they’re concerned, and an average concern level of 60 on a scale of 1-100.
Despite cutbacks, cancellations or delays, and other concerns, 74% report that morale hasn’t declined
but instead remains about the same, and 5% report that morale is high.
Looking ahead to the third and fourth quarters, 41% report they expect revenue to decline as the end of
the year approaches, with 10% expecting a sharp decrease. Still, not everyone shares that dim outlook -
nearly 26% expect revenue to increase, and a small minority (3%) indicate they expect revenue to jump
dramatically. 33% say they expect revenue to remain about the same in Q3 as they work through their
project backlogs, but that drops to 22% heading into the fourth quarter.
Economic recovery timing for the construction industry is by far the largest area of concern, with 79% of
respondents expressing concern. The financial stability of customers and vendors is also high on the list,
cited by 51% of respondents and closely followed by PPP loan forgiveness concerns (46% of
respondents). Employee issues are of higher concern than cash flow, with 28% say issues such as
recalling furloughed or laid-off employees, new or additional layoffs, and employee well-being, health,
and safety, while only 14% indicate cash flow is a major concern.
Other reported concerns include consumer confidence and customer spending, as well as the potential
impact of a second wave of infections triggering another shutdown period.
Construction industry responses to a question asking how their business had changed included:
• “Safety requirements and our backlog is uncertain.”
• “Shift in project scope and safety.”
• “Customers have cancelled installations, sales inspections are down, trying to right-size the
company.”
• “Biggest uncertainty is future pipeline. Past contracts have kept business flat, but lots of
uncertainty in the future.”