How the construction industry will recover from COVID-19

Posted by Compass Group on Jul 15, 2020

The construction industry is able to recover from COVID-19's effects.The construction industry has changed in the wake of COVID-19. Although many have adapted to necessary, innovative changes to keep their businesses afloat, others wonder what they can do to survive. What does the market look like on the “other side” of the pandemic? The good news is the construction industry can recover.

  1. Remote and other off-site work will become more common.

Buildings can’t be built from home, but many functions of this industry are 100% compatible for remote work. Holding virtual meetings, utilizing remote technology for inspections, and prefabrication will be the new norms. The benefits of off-site building have been witnessed on a small scale for some time now, and the advantages of assembly lines in controlled environments will be widespread as it reduces the amount of time and manpower spent on-site.

  1. Extend project build times.

Although prefabrication will save time, unfortunately it isn’t enough to offset the change in human resources as shifts remain staggered and remote work thrives. When it comes to picking new projects to take on, project managers need to be realistic about how the new pace will impact their ability to finish the job promptly while still keeping workers safe. Having fewer people in place at once may extend the timeline of a project, but accounting for that with extended schedules can get you prepared to still build within a reasonable timeframe. 

  1. Balance money lost with money saved.

Since the beginning of COVID-19, new projects have dwindled and current projects have been canceled, directly affecting the revenue stream workers rely on. We have also seen how much money is saved by remote work. Taking the balance even further, some companies may consider consolidating their physical spaces as temporary remote jobs move to a permanent position. Whether or not these changes will balance out with lost revenue will depend upon each company, but it should be on everyone’s radar.

  1. Create safer job sites

We have all faced many hard decisions and realizations that would have never crossed our minds had it not been for this unique situation. That being said, the workforce moving forward has to become safer for its workers, not just during the pandemic but as a regular expectation of the industry. Sites should have access to sanitizing soap and fresh water at all times, maintain social distancing as much as possible, have staggered shifts become permanent, and ensure routine disinfecting of all equipment and surfaces. Above all else, crisis response plans need to be in place so if something like COVID-19 was to resurface again, the disruption wouldn’t be as system shocking as it was this time around.

  1. Supply chain disruption will shift

With most of the materials used for construction coming from China, there was a clear change in the industry once an alternate norm had to be created. This means finding other places to get materials from, becoming more reliant on American supplies, and changing the way projects are proposed. The industry is faced with a decision of resilience or efficiency, and we are finding that companies are spending a bit more to ensure they get the quality goods they need as safely as possible. A new standard is when a plan is presented, it must be accompanied with a shortlist of back-up sources you can get materials from should your primary source be unusable at the time of the project’s start.

  1. Expect project types to change

Right now isn’t the time department stores are wanting to remodel. However, in these times, hospitals are in high demand to add-on and renovate to accommodate the change in flow and requirements of patients. Expect that retail and entertainment industries will offer fewer opportunities than healthcare and medical manufacturing industries will. There is also an expected rise in the distribution and warehouse area as the supply chain distribution mentioned above equalizes. In the future, there will more than likely be a desire to “stock up” on supplies to better prepare for any other scenarios like COVID-19. 

  1. Union presence will increase

Union presence in the construction industry has severely diminished year by year since its inception. However, the importance of unions was highlighted this year as some workers fought for their right to go to work while others fought for their right to stay home. Unions have worked to protect their members from the harsh economic impact caused by the pandemic and will continue to protect their members as restrictions get lifted. The best possible position with unions is collaboration so all potential issues are addressed and everyone can get back to work as comfortably as possible when the time comes.

COVID-19 has changed a great deal of how the construction industry must be handled to remain open while keeping its workers safe. But these changes aren’t as temporary as we once believed they might be. The way business is done has forever been changed and to survive the transition, companies need to adapt to the turbulence so they can come out stronger in a post-pandemic world.

Topics: construction industry