How Covid-19 Will Impact the Global Construction Industry?
There is hardly any industry around the globe that is not affected by the Coronavirus. In 2020, almost all commercial activities came to a halt for a while and badly affected the economy. The construction industry is no exception.
Increased health risks that came along with COVID-19 worsened the productivity and efficiency in the construction sector. Falling revenue and disrupted supply chains increased challenges related to delivery and caused the industry’s contraction in most markets.
But, it is also said that construction has a strong potential to accelerate recovery due to its ability to create jobs. Also, the recovery measures will likely accelerate the industry’s digital transformation. All in all, one thing is sure – the pandemic will affect the construction sector in more ways than one. Let’s find out how and what changes should we expect for 2021:
- Safer Construction Sites
The construction industry is infamous for its bad safety track record at worksites all over the world. In 2019, about 20% of private worker fatalities were in construction. Each year, the construction industry creates a new track record of workplace fatalities due to fewer safety measures taken on worksites.
However, after the pandemic, there is much spotlight on worker’s health and safety in every industry as strict rules and regulations are in place. A lot of U.S. contractors responded to it by implementing new safety-related policies like temperature checks, staggered shifts, disinfection of tools, job sites, and machinery.
Fewer people on construction sites at a time will make it simpler for safety administrators, foremen, and site directors to monitor workers and guarantee that not just COVID-related but all safety guidelines are being followed while working. The pandemic will also drive safety administrators to incorporate training and upgrading of their safety programs and plans to manage any further pandemic or outbreak.
- Better Supply Chain Management
In 2020, when the COVID-19 outbreak was on peak, a lot of contractors were not able to get essential supply materials like cement, bricks, and sand along with tackling the challenges related to the labor shortage. In the UK, for example, a shortage of plaster nationwide resulted in a sharp increase in its price. Not just in the UK, the pandemic affected the global supply chain adversely, as the US-based construction firms source large quantities of these materials from China.
Because of the COVID outbreak in China, travel restrictions, and the closing of ports, the supply chain was disrupted in the US. The situation forced US-based companies to look for local manufacturers of products or in closeby countries like Mexico.
Since the concerns around sourcing materials continue, the construction businesses will probably look for permanent homegrown suppliers and try to maintain bigger inventories of basic materials to prepare for similar delays and disruptions in the future. Overall, making a supply chain that can adjust rapidly to connect with alternate suppliers will be key for construction businesses post-pandemic.
- Remote Work Technologies
After the pandemic, there are now a limited number of individuals allowed on the worksite in many countries around the world. But, contractors have no choice rather than ensuring continuity of work which is only possible with the help of remote work technologies. This includes using video conferencing and construction project management software to ensure that all the stakeholders can remotely manage and monitor the progress of multiple projects.
Other digital collaboration tools like BIM, 4D, and 5D simulators have also gotten a lot of traction in the pandemic and their use is expected to continue in the future as well. As a result, you can now expect improved collaboration among workers of a construction project which will ensure any changes in projects can be handled appropriately.
- Increased Demand But Tight Budgets
The COVID-19 pandemic will surely increase the demand for specific types of construction projects in the near future. For example, construction for medical supply production facilities, hospitals, and health care centers could grow. The demand of constructing new kinds of workplaces to shift from the previously well-known “open-concept” environment to a private and restricted environment for improving social distancing is also likely to grow.
As the U.S construction firms plan to overcome the supply chain disruption, the demand for warehouse, distribution, and manufacturing factories will surely grow in the future. On the other hand, the construction demand for retail, entertainment, and hospitality projects may become weaker. However, we are yet to see how the industry will manage these increased demands in tighter budgets due to weak economies around the globe.
- Construction Technology is Going to be the New Normal
Despite the need, the adoption of technology in construction was slow over the last few years. However, due to the pandemic, a large number of construction businesses realized that technology isn’t an option now, rather, it is a necessity. Many contractors turned to technology to ensure business continuity when stay-at-home orders were in place to communicate and collaborate with stakeholders.
The applications of technology in construction are many and the pandemic will just accelerate its adoption. For example, using technologies like virtual reality, project owners, engineers, and architects can better visualize projects. Thermal cameras, wearables, and drones can be utilized to monitor workers to ensure their health and safety, and they are maintaining social distancing while at the worksite.
The list of uses and advantages of construction technology can go on and on. It would be right to say that the pandemic acted as a catalyst for the transformation of the construction industry around the globe.
- Longer Project Timelines
As the way the construction industry was operating since decades is going to change, longer project timelines are expected. The personnel of the industry will need time to get used to these changes and big safety overhauls could mean longer project timelines. With fewer workers, more time spent in following safety guidelines, and the requirement for legitimate PPE and worksite prep, the era of fast-tracking projects might be finished.
That could be a major change for people who need to plan the processes and they may need to rethink their job planning strategies. However, it could be beneficial for other workers as they will be able to better focus on their safety when performing jobs.
Wrapping Up
The pandemic isn’t something any of us anticipated. It confused everybody. While some adjusted quicker, others are still struggling to find ways. We are still not sure what the future may bring, however, with strategic planning and adjustments, the construction industry can come out the opposite side more grounded and stronger than ever before.
Author Bio: Ed Williams is the Senior Team Lead at ProjectPro, an integrated construction accounting software. He holds a massive industry experience and is a Microsoft Dynamics expert who is focused on successful implementations. He is a visionary leader and always aim to deliver the best to the construction and project-oriented industries
