A trio of construction economists offered a look at impact of COVID-19 on construction during a during a May 7 webinar from ConstructConnect. The webinar hosted Ken Simonson, chief economist of AGC of America, Kermit Baker, chief economist of AIA, and Alex Carrick, chief economist, ConstructConnect.
The impact of COVID-19 on construction
A trio of construction economists offered a look at impact of COVID-19 on construction during a during a May 7 webinar from ConstructConnect. The webinar hosted Ken Simonson, chief economist of AGC of America, Kermit Baker, chief economist of AIA, and Alex Carrick, chief economist, ConstructConnect.
Looking ahead, the economists project a long road to recovery for construction, with some segments and regions coming back faster than others.
In the short term, “there will be almost no new private [construction] starts except for areas of improving home delivery and connectivity,” says AGC’s Simonson. Looking at the mid- and longer-term outlook, “As the economy opens back up, other industries will be way ahead of construction. Many firms are going to find customers they have been counting on have closed up shop. They no longer see the need to open up a new restaurant. States will see they have revenue way down and may put off building that new library or school. … By and large, construction will be a lot slower coming back.
The industry may also see some shifts in building design in response to the pandemic. “Trade associations will be getting down to talk about the necessary design changes, the necessary code changes that might come down the pike,” says ConstructConnect’s Carrick. “Be thinking about the code changes and how the product you see will fit into those changes.”