ConDig (26-Mar-20). Construction officials have broadly welcomed a $2 trillion coronavirus relief bill, which was passed by the Senate late Wednesday night.
“The coronavirus relief measure the Senate passed last night will provide construction employers and employees with critically needed access to capital, expedited cash flow, worker benefit protection and critical tax relief, among other measures,” said Stephen E. Sandherr, chief executive officer of the Associated General Contractors of America.
“These measures will provide construction firms and their employees with a needed lifeline to help them cope with a rapidly deteriorating business environment.”
But he warned the construction industry could require Congress to provide financial compensation for losses incurred on federally funded projects because of COVID-19 related delays and cancellations, while increase investments in infrastructure and pass needed multi-year funding measures for surface transportation and waterways.
“And Congress must act to protect the retirement and health plans of millions of construction workers who participate in multi-employer pension programs,” he added.
Dean Mon, chairman of the National Association of Home Builders (NAHB), said the bipartisan economic stimulus package contained key provisions to help small businesses, including many home building firms, to keep their doors open and meet payroll requirements.
“It also provides needed cash infusions to families to help them pay their mortgage or rent during this unprecedented hit to our economy,” he said.
“Given the magnitude of this crisis and its ongoing detrimental effects on the housing sector, further action may be necessary.”
It comes as construction equipment manufacturer Caterpillar Inc said it was withdrawing its 2020 financial guidance and was temporarily shutting down operations at some of its plants in the wake of the economic crisis sparked by the COVID-19 pandemic.
“At this time, Caterpillar is continuing to run the majority of its U.S. domestic operations and plans to continue operations in other parts of the world, as permitted by local authorities. However, due to uncertain economic conditions resulting in weaker demand, potential supply constraints and the spread of the COVID-19 pandemic and related government actions, Caterpillar is temporarily suspending operations at certain facilities,” it said in a statement.
“The company will continue to monitor the situation and may suspend operations at additional facilities as the situation warrants.”