{"id":119291,"date":"2020-09-04T15:22:18","date_gmt":"2020-09-04T19:22:18","guid":{"rendered":"https:\/\/www.constructionspecifier.com\/?p=119291"},"modified":"2020-09-04T15:22:18","modified_gmt":"2020-09-04T19:22:18","slug":"construction-industry-needs-immediate-supports-to-recover-from-covid-shutdown-survey","status":"publish","type":"post","link":"https:\/\/www.constructionspecifier.com\/construction-industry-needs-immediate-supports-to-recover-from-covid-shutdown-survey\/","title":{"rendered":"Construction industry needs immediate supports to recover from COVID shutdown: Survey"},"content":{"rendered":"
\"As<\/a>
As per a new workforce survey by the Associated General Contractors of America (AGC) and Autodesk, 60 percent of firms report future projects have been canceled or delayed, but 52 percent of respondents struggle to find craft workers.<\/span>
Photo \u00a9 BigStockPhoto.com<\/span><\/em><\/figcaption><\/figure>\n

According to a workforce survey<\/a> by the Associated General Contractors of America<\/a> (AGC) and software company Autodesk<\/a>, the COVID-19 pandemic has harmed the construction industry, prompting project delays and cancellations, layoffs, and furloughs. Yet, it remains difficult for a majority of firms to find craft workers to hire.<\/p>\n

The survey paints a picture of an industry in need of immediate recovery measures and longer-term workforce development support, association officials added.<\/p>\n

Sixty percent of responding firms report having at least one future project postponed or canceled because of COVID-19, while 33 percent report having projects that were already underway halted because of the pandemic. The share of firms reporting canceled projects has nearly doubled since the\u00a0survey<\/a>\u00a0AGC conducted in June, when 32 percent of respondents reported cancellations.<\/p>\n

COVID-19 has also undermined the sector\u2019s productivity levels as firms across the country change the way they operate to protect workers and the public from the disease. Forty-four percent of responding firms report it has taken longer to complete projects and 32 percent say it has cost more to complete ongoing projects because of COVID-19. As a result, 40 percent report they have adopted new hardware or software to alleviate labor shortages they have experienced.<\/p>\n

\u201cThe results of the AGC and Autodesk workforce study reveal the construction industry is still grappling with the changes and consequences of the coronavirus pandemic,\u201d said Allison Scott, director of construction thought leadership and customer marketing at Autodesk. \u201cThe long-term effects of the current crisis have yet to play out, and firms that double down on innovation efforts, whether an increased focus on lean construction, workforce training, or technology that facilitates remote collaboration will be well poised for enduring resilience.\u201d<\/p>\n

COVID-19 has also negatively affected many firms\u2019 confidence in future demand for projects. Only 42 percent of firms report their volume of business has returned to last year\u2019s levels or is expected to do so in the next six months, compared to 52 percent who held this view in AGC\u2019s June survey. Another 37 percent expect returning to normal levels of business will take more than six months, while the remainder do not know.<\/p>\n

While the pandemic has led to project delays and cancellations nationwide, contractor expectations of recovery vary by region. Forty-five percent of respondents in the Northeast expect it will take more than six months for their firm\u2019s volume of business to return to normal, compared to only 34 percent of respondents in the West, 35 percent in the South, and 41 percent in the Midwest.<\/p>\n

There are also some differences by project type and revenue size. For instance, highway and transportation contractors report the greatest difficulty in filling hourly craft positions, with nearly three out of four (73 percent) reporting an unfilled craft position on June 30. About two-thirds (69 percent) of utility infrastructure and federal and heavy construction firms had unfilled craft positions then, along with 58 percent of building construction firms.<\/p>\n

Small firms were less likely to have experienced cancellations of upcoming projects. Fifty-six percent of firms with revenues of $50 million or less report a project has been postponed or canceled, compared with 71 percent of mid-sized firms (revenue between $50.1 and $500 million), and 69 percent of large firms (revenue exceeding $500 million).<\/p>\n

Roughly a third of responding firms furloughed or terminated employees as a result of the pandemic and shutdowns ordered by government officials or project owners. Most of those firms have asked at least some laid-off workers to return to work. However, 44 percent of firms that recalled employees report some have refused to return, citing a preference for unemployment benefits, virus concerns, or family responsibilities, among other reasons.<\/p>\n

The pandemic has also made it difficult for many firms to fill open positions, especially for hourly craft jobs. A majority (52 percent) of respondents report having a hard time filling some or all hourly craft positions, especially openings for laborers, carpenters, and equipment operators. Sixty percent of firms had at least one unfilled hourly craft position as of June 30. Additionally, 28 percent of respondents report difficulty filling salaried positions\u2014in particular, project managers and supervisors.<\/p>\n

In addition to turning to diverse technologies to alleviate labor shortages, 38 percent of firms report having increased base pay rates to attract and retain workers. In contrast, only three percent of firms have reduced pay, in spite of the downturn in business.<\/p>\n

Construction firms also identified a series of measures \u00a0officials could take to help the industry. Fifty-five percent of responding firms, for example, said they were looking to Congress to increase funding for all forms of public infrastructure and facilities. Fifty-three percent want Congress and the Trump administration to enact liability reforms to shield companies who are protecting workers from COVID-19 from needless lawsuits. Additionally, 41 percent want Congress to address unemployment benefits that serve as artificial barriers to returning people to work.<\/p>\n

Association officials unveiled new plans to encourage more people to pursue high-paying careers in construction to ease hiring challenges and find a way to attract recently unemployed people into the construction industry. Among other steps, the association is launching a new \u201cConstruction is Essential\u201d campaign to highlight the benefits of construction careers.<\/p>\n

\u201cThere is a lot Washington officials can do to help boost demand for construction projects and get more people back to work rebuilding the economy,\u201d said Stephen E. Sandherr, the association\u2019s CEO, noting the association was pushing Congress and the administration to enact new recovery measures. \u201cThe challenge is the coronavirus has put many contractors in the position of looking for work and workers at the same time.\u201d<\/p>\n

The survey was conducted between August 4 and 26. Over 2000 firms completed the survey from a broad cross-section of the construction industry, including union and open shop firms of all sizes.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to a workforce survey by the Associated General Contractors of America (AGC) and software company Autodesk, the COVID-19 pandemic has harmed the construction industry, prompting project delays and cancellations, layoffs, and furloughs. 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