Unknown Impact Of The Coronavirus On The Construction Industry
As the cases of the coronavirus – also known as COVID-19 – continue to increase worldwide, and with new cases developing daily in the U.S. and Canada, albeit on a much smaller level, businesses across America are wondering how this will affect their bottom line in the foreseeable future.
Many economists believe that the potential global pandemic could lead to disruptions of supply chains and businesses that involve trade, manufacturing, retail and financial services. As one level of supply is affected, it is only a matter of time before the effects filter down to the next level, meaning that the consequences may not be felt until several months from now. This is especially true in the construction industry.
It is precisely these unknown ramifications of the virus that are currently causing instability in the financial markets. Will the virus disrupt our economy
on a major scale, or will the virus die off before long term damage is done? With so many unknowns, companies must arm themselves with an ever-unfolding development of information and prepare for the worst while hoping for the best.
In other words, business leaders must make decisions based on known facts, not fear. For the construction industry, this means having the advantage of being an industry that works primarily outside, thus limiting the spread of the virus that easily occurs in office and enclosed settings. But that doesn’t mean construction industries can be lax. It is still important to following these guidelines:
- Place plenty of hand sanitizers around the construction site.
- Encourage frequent hand washing.
- Warn employees against sharing water and other drinks, as well as foods.
- Provide water coolers with disposable cups, rather than bottled waters that can be passed around or mistakenly drank from.
- Inform employees that they must stay home if they get sick to prevent the spread of the virus.
- Pay employees to take time off to recover, rather than financially penalize them which encourages them to come to work sick.
- Educate employees about the symptoms of COVID-19: mild to moderate respiratory illness similar to the common cold; fever, cough and shortness of breath; progression to a more serious illness such as pneumonia.
While China slowly rebounds from the economic costs of the virus, the effects on the U.S. economy may be just beginning. For example, the U.S. Federal Reserve has announced that it is cutting short-term interest rates by 50 basis points to a target range between 1.0 and 1.25 percent, a move that has left industry experts confused about what this implies, while CBRE points out that the economic consequences of the virus are already being felt in the hospitality and construction sectors. The brokerage also warns that supply chain disruption may have an impact on manufacturing and distribution facilities.
How much of an impact remains to be seen, leaving construction industry leaders to sit tight, plan ahead, and take necessary precautions to help prevent the further spread of the virus.
