COVID-19 has had a significant impact on the AEC industry throughout 2020 and will continue to negatively impact the industry into 2021. The pandemic has caused manufacturing job losses, delayed projects, canceled projects, and fear as we move into next year. What are the ultimate impacts of the pandemic and how can manufacturers reduce their impact?

Construction has been deemed essential in most states which has helped keep the industry afloat. However, as we move into 2021, the number of confirmed COVID-19 cases has begun to grow at an alarming rate in many parts of the country.

“It is safe to assume that any number of state and local officials will come under significant pressure to impose comparable new lockdown measures here during the next several weeks and months. In other words, our industry once again finds itself a simple stroke of the pen away from being forced to stop work,” said Stephen Sandherr, CEO of the Associated General Contractors.

According to Construction Dive, public health data has identified serious COVID-19 issues afflicting the construction industry. Recent data and cases include:

• Construction and manufacturing had the third highest total of all outbreak settings tracked by the Michigan Department of Health and Human Services through Nov. 12, behind only long-term care facilities and schools.

• 106 COVID-19 outbreaks in Washington state through Nov. 12, the third highest total for all settings, behind only restaurants and produce packing, according to the Washington State Department of Health.

• Construction workers in Texas are five times more likely to be hospitalized with COVID-19 than workers in other industries, according to a study conducted by researchers at the University of Texas Austin COVID-19 Modeling Consortium.

In our previous blog How Coronavirus Is Affecting Construction Businesses, we discussed how COVID-19 was affecting the global economy and product manufacturers. Until the pandemic is contained, we can only speculate on the specifics of how the construction industry may be affected long-term by the seismic impact of COVID -19. The COVID-19 challenges for the AEC industry and building product manufacturers include:

Material Delays and Disruptions in Supply Chain

By conservative estimates, nearly 30 percent of all U.S. building product imports come from China, but some American construction firms rely on China for up to 80 percent of their materials because they are generally less expensive. Higher material costs are also predicted - with fewer supplies available along with a higher demand, a purely economic explanation dictates that the costs will naturally be higher.

Labor Shortages

Labor challenges will continue to affect construction projects which may delay or cancel construction projects.  Even projects deemed essential and allowed to continue will suffer from a reduced workforce due to infected, sick, or quarantined workers. Companies should be cross-training staff. Cross-training employees allows them to be skilled at tasks outside the usual parameters of their jobs - thus becoming greater assets for the company while gaining knowledge and skills that benefit them personally.  It will also help avoid fears that their jobs may be in jeopardy.

Revenue Loss and Business Risk

Visiting architect’s offices, delivering AIA lunch and learns, and attending tradeshows like AIA, USGBC, and CSI conventions. When will AEC firms allow product reps to deliver a face to face lunch and learn? In six months? In a year?

How can building product reps maintain relationships with architects and specifiers for projects? Zoom meetings, phone calls, emails, and other tech-heavy solutions provide a remedy for now. But many product reps are used to face to face relationships, eye contact, and a more personal approach to working on projects with team members.

Solutions For Building Product Manufacturers

We have compiled a list of resources for building product manufacturers wanting to reduce the impacts of COVID-19 and succeed in the economy. Here are a few suggestions:

 Pandemic Programs For Manufacturers

 Pandemic: How Building Product Manufacturers Can Navigate A Global Crisis

 Guidance on Preparing Workplaces for COVID-19

How is your company navigating the challenges of COVID-19?