Survey finds 60% of contractors had projects canceled due to Covid-19

ConDig (02-Sept-20) Over half of US contractors have had at least one future construction project postponed or canceled because of the Covid-19 outbreak, according to the Associated General Contractors of America (AGC) and Autodesk.

AGC said that 60% of contractors had experienced a project being shelved, while 33% reported having projects that were already underway halted because of the virus and subsequent economic lockdown. 

The share of firms reporting canceled projects has nearly doubled since the survey AGC carried out in June, when 32% of respondents reported cancellations.

Allison Scott, director of customer marketing at Autodesk, said the survey showed the construction industry is still grappling with the changes and consequences of the coronavirus pandemic.

“The 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,” she said.

The virus has also undermined the industry’s productivity levels as firms across the country change the way they operate to protect workers and the public from the illness, with 44% of firms reporting that it had taken longer to complete projects. A further 32% said it had cost more to complete ongoing projects because of the coronavirus. 

As a result, 40% reported adopting new hardware or software to alleviate labor shortages they have experienced. 

Despite the challenges facing contractors in the wake of the outbreak of the virus, 52% of construction companies still struggle to find craft workers due to worker fears of Covid and unemployment support.