The construction industry involves the construction of residential & commercial buildings, industrial construction, and heavy and civil engineering constructions. The construction industry is one of the largest job creators all across the globe. Period from March-June is considered appropriate for high productivity of the construction activities due to halting of construction activities in monsoon season. Unlike any other sector, the construction sector is also affected largely due to the spread of COVID-19 pandemic. Millions of people have lost their jobs as construction sites have to be closed as the mass gathering is restricted to prevent the further spread of the virus. With the supply chain disruption and shortage of raw material and sub-contractors several construction projects have been delayed or even got canceled. Sound Transit, a transit agency has directed its contractor to suspend most of its construction on the light rail transit expansion projects across the US from 6th April 2020. The only critical task will continue after the announcement. As per a survey in April 2020 by the Associated General Contractors of America (AGC), around a quarter of the construction companies in the US had laid off due to the COVID-19 pandemic.
More severe consequences have been witnessed in emerging economies. The Indian government has announced a 21 days lockdown on 24th March 2020. As an estimate, it has affected around 85 million people in the country who are daily wage earners in the country. A number of layoff in the organized sector is also witnessed in the country. On an overall basis, the outbreak of coronavirus has led to the halting of the construction activities which in turn is making negative impact on the profitability, operating income, and the liquidity position of the construction companies on a short term basis. Although the governments of different countries are taking timely measures to offer liquidity to the cash starving companies, the impact of the outbreak is anticipated to make the construction industry under pressure. Besides, a steep downfall in crude oil prices has been witnessed in the last couple of months. Due to this, the spending by the oil companies on expansion and other construction activities may halt for sometimes. The lowering in the price of oil may also result in the cancellation or postponed of renewable energy projects in some developing economies. Moreover, supply chain bottleneck related to construction equipment and raw material can be witnessed in the near future due to shut down of manufacturing units all across the globe.
OMR Global recently published report on https://www.omrglobal.com/industry-reports/impact-of-covid-19-on-global-construction-industry
The Report Covers
- Comprehensive research methodology of the global construction industry.
- This report also includes a detailed and extensive market overview with key analyst insights.
- An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
- Analysis of regional regulations and other government policies impacting the global construction industry.
- Insights about market determinants which are stimulating the global construction industry.
- Detailed and extensive market segments with regional distribution of forecasted revenues.
- Extensive profiles and recent developments of market players.
Global Construction Industry – Segmentation
- Residential Building
- Commercial Buildings
- Industrial
- Heavy and Civil Engineering Construction
- Other (Site preparation)
To learn more about this report request a free sample copy @ https://www.omrglobal.com/request-sample/impact-of-covid-19-on-global-construction-industry
