ԹϺ Members Coronavirus Survey
Association Survey and Data Collected by Procore Measure Impacts of the Pandemic, Showing Signs of a Construction Recovery, but Labor Shortages and Project Cancellations Show Industry Needs Federal Help
A new survey by the Associated General Contractors of America and data from construction technology firm Procore show that construction activity is returning to pre-coronavirus levels in many parts of the country and some firms are adding workers. The new economic data, however, also shows some future projects are being canceled and many others are being delayed by supply chain issues and labor shortages, underscoring the need for additional federal recovery measures, association officials noted.
Two-Thirds of Firms Report Having Projects Delayed or Canceled Since the Start of the Outbreak as Association Calls for Measures to Revive the Economy, Boost Demand for Construction and Save Jobs
Construction employment declined in the District of Columbia and every state except South Dakota in April, an analysis by the Associated General Contractors of America of new government data shows. At the same time, the association released a new survey that finds that rising project cancellations are forcing many firms to furlough or terminate employees even as federal relief measures help avoid further job losses. Association officials urged Washington officials to act quickly on measures like new infrastructure funding, liability protections for employers and extending the Paycheck Protection Program.
Forty Percent Of Construction Firms Report Layoffs Amid Widespread Project Cancellations As Economic Impact Of Coronavirus Grows
Survey of Construction Firms by the Associated General Contractors of America Finds More Than Half of Firms Have Had Projects Halted as 74 Percent Seek New Paycheck Protection Loans to Retain Staff
With the covid-19 pandemic worsening by the week, an ever-increasing share of contractors are reporting cancellations of upcoming projects and shortages of equipment or materials, forcing nearly 40 percent of firms to lay off employees, according to an online survey released today by the Associated General Contractors of America. Association officials added that 74 percent of firms are seeking new Paycheck Protection Program loans and urged Congress to quickly add more funding for the over-subscribed program, among other recovery measures needed.
“Owners are not only halting many current construction projects but are canceling a growing number of projects that have not yet started,” said Ken Simonson, the association’s chief economist. “Inevitably, that has caused a growing number of contractors to furlough or terminate jobsite workers.”
Twenty-seven Percent Of Construction Firms Report Layoffs Since The Coronavirus As New Jobs Report Offers Early Snapshot Of The Losses
April 3, 2020
Association Survey Conducted This Week Suggests Industry’s Job Losses are Spreading Rapidly; Officials Call for Additional Federal Measures to Help Avoid Further Layoffs and Economic Pain
The fast-worsening covid-19 pandemic has triggered layoffs at more than a quarter of construction firms responding to an online survey released today by the Associated General Contractors of America. The finding, based on responses from earlier this week, contrasts with the government’s monthly employment report for March, which found that construction employment declined by 29,000 as of mid-March.
“The March employment data does a better job reflecting market conditions before the pandemic than it does the widespread disruptions that have occurred during the past few weeks,” said Ken Simonson, the association’s chief economist. He noted that the federal employment figures are based on payrolls as of March 12, when relatively few states or individual owners had directed contractors to stop work. “Our survey, meanwhile, indicates rapidly deteriorating labor and market conditions for the construction sector.”
Sharp Jump In Owners Canceling Or Delaying Construction Projects Across The Country, New Survey Finds, Putting Many Jobs At Risk
March 27, 2020
After 42 States Added Jobs in February, Coronavirus is Taking a Swift and Severe Toll on the Industry, Prompting Association Officials to Call for Additional Measures to Help Workers and Firms Recover
Thirty-nine percent of contractors report that project owners have halted or canceled current construction projects amid deteriorating economic conditions, according to a survey released today by the Associated General Contractors of America. Association officials warned that these cancellations mean massive job losses are likely soon unless Congress passes targeted recovery measures to boost infrastructure funding, compensate firms for lost or delayed federally funded work and provide needed pension relief. The project cancellations are particularly severe in light of new data showing that 42 states added construction jobs through February.
“The abrupt plunge in economic activity is taking a swift and severe toll on construction,” said Ken Simonson, the association’s chief economist, noting that only 18 percent of respondents have been ordered to halt work by elected officials. “The sudden drop in demand stands in sharp contrast to the strong employment levels this industry was experiencing just a few weeks ago.” Click for additional video comments from Mr. Simonson.
Pandemic Has Halted Or Delayed Projects For 28 Percent Of Contractors, Survey Finds; New Senate Relief Bill Will Provide Some Help For Industry
The coronavirus pandemic has caused more than one out of four contractors to halt or delay work on current projects, according to a survey released today by the Associated General Contractors of America. The survey results show how quickly market conditions have changed compared to data showing a majority of metro areas added construction jobs through January. Association officials noted that a relief bill the Senate is considering includes some favorable tax and loan provisions. But they said the bill also needs new infrastructure investments and improvements to the new paid sick and family medical leave measures.
“The coronavirus pandemic has the potential to undermine what had been a very robust construction market, threatening the livelihood of countless workers and the viability of many firms,” said Ken Simonson, the association’s chief economist. “Providing additional tax credits and loans will help, but contractors also need the certainty that comes with infrastructure funding and improvements to the new paid and family leave measures.”
ԹϺ Survey of State DOTs
ԹϺ Survey of State DOTs Indicates More States are Suspending or Delaying Projects due to COVID-19 Response
March 26, 2020
An ongoing ԹϺ of highway chapters and members indicated that Washington State and Vermont have become the second and third states, after Pennsylvania, to issue guidance halting all department of transportation (DOT) construction projects. As an addendum to his “Stay Home, Stay Healthy” proclamation, Washington Governor Jay Inslee temporarily halted all construction projects, effective immediately. The suspension broadly covers all Washington DOT projects with a limited number of exceptions. Vermont Governor Phil Scott also halted the majority of public construction projects in his state until April 15. In addition, the Ohio DOT announced a decision to defer two major new projects, collectively estimated at $192 million, to the first two quarters of FY 2021. This decision was based on the concern of a significant decrease in revenue generated from the state’s motor fuels tax due to the state’s stay at home order. ԹϺ will continue to remain in contact with chapters and members to monitor nationwide how states are handling construction projects in response to various efforts to respond to the COVID-19 pandemic.
For more information, contact Brian Deery, Senior Director, Highway & Transportation Division at brian.deery@agc.org.