Construction Industry Turns to Layoffs, Furloughs Amidst COVID-19
April is often the time of year when construction begins ramping up, bringing in plenty of business after the winter months. However, COVID-19 is throwing a wrench into the situation as many construction companies are now laying off or furloughing their employees. According to a survey of nearly 1,300 respondents from Associated General Contractors of America (AGC), 27% said they terminated or furloughed their jobsite workers because of the Coronavirus.
Between March 30 and April 2, AGC conducted its survey to learn more about the impact of COVID-19 on the construction industry. Since the outbreak reached the U.S., roughly 87% of respondents said there has been no new or expanded construction. The majority of respondents (80%) worked for owners in the construction of private buildings, followed by 59% who worked for those in the construction of state and local buildings. Others said they worked for owners to construct highways, utility infrastructure, federal civilian agencies and federal military.
Construction Dive studied the survey results, which also "found that contractors are facing a range of issues related to COVID-19, including materials shortages, PPE shortages, potential infected workers, lack of government action and a shortage of craftworkers."
The survey also states only 38% said their suppliers notified them or their subcontractors that deliveries would be late or cancelled.
—Andrew Michaels, editorial associate