How the Construction Industry Will Emerge After COVID-19
How does the construction industry emerge after COVID-19?
- Rough Start
- Financial Stability
- Workplace Safety
- Supply Chain Stabilization
No industry is immune to the pandemic. That is an undeniable truth that the it has brought everyone. Amidst these struggles, there’s hope for the construction industry after COVID-19. As long as construction companies make efforts to preserve their operations and protect their personnel, there’s a good forecast for the post-pandemic age.
Rough Start
The start of 2020 was rough for a lot of companies in China and the world. As the clock continues to tick, it gets worse before it can get better. There are tons of companies experiencing canceled and delayed projects due to government mandates and general safety. Supply chains are still unstable. Employee and subcontractor labor health concerns need to consider social distancing on construction sites.
People were not prepared for this sudden lifestyle change. To combat this new normal, companies need to have a swift and smart action to manage the immediate global crisis, company financial position, and supply chain stabilization. The rough start can be smoothed into a much more solid foundation with the correct strategies.
Financial Stability
Most companies are facing the challenge of financial stability. Maintaining stability in this time of uncertainty requires in-depth reviews of capital and cost budgets. Companies may also use unorthodox options such as government stimulus packages. However, these options may not always be the best depending on what country they reside in. The construction industry and economy have no exact clarity. There’s no perfect solution to the current problem. Construction companies need to make leaps and bounds during this time to successfully create a cost-containment strategy amidst the delays and project cancelations.
To successfully navigate during COVID-19’s duration, the latest and accurate data is required. In order to have an updated scenario analysis, efforts to gather new and better data should be focused on. If a company hasn’t adapted to using data analytics, now is the better time to do so. These are important tools worth investing in to help navigate through COVID-19’s duration and can certainly be used for future endeavors. These tools can also aid in supporting better decision-making in the post-pandemic world.
Workplace Safety
Yet another challenge is workplace safety. Construction companies cannot rely on a work from home basis for long periods. There are still a ton of workers required to do their job on site. This can easily be solved by providing personal protective gear. However, to take it up a notch, staggered shifts, safe distancing, and banning of visitors on the site will help keep the workplace safe. The digitization and use of smartphone applications can also help managers track the locations of their workers remotely. This is also an important tool to use to quickly identify who’s been exposed to the virus so long as proper privacy regulations are implemented.
Employees will also have to make an effort to communicate with management. Thus, the use of smartphone applications and online communication plays an important role once more. Empowering employees and teaching them basic cybersecurity can also prevent sensitive project information from being leaked. If an employee is working from home, a regular line of communication should be properly established. The last thing a company wants is for the employee’s skills to be wasted at home because of idle work. Being active on both the employee and the management side when it comes to communication will help.
Supply Chain Stabilization
The COVID-19 economic consequences are staggering. A lot of vendors and subcontractors may find themselves struggling to survive without proper income. They may not even find the proper time to fulfill contracts due to this economic freeze. Overseas suppliers can experience delays due to border control and more.
Construction companies must be able to look into these problems and manage a proper supply chain flow on the site. To find certain vulnerabilities in the supply chain, reaching out to suppliers is the first step. Then gathering data and building an appropriate dashboard with consistent updates can help refine the supply chain stabilization. With the data collected, companies can now consider financial, legal, marginal impacts, cash flow, loan repayments, and more. Using this data can mitigate risks and opens a steady flow of supply chain handling.
For long term solutions, outside help may be appropriate. This can include tapping into government funding and stimulus programs. If needed, looking for new suppliers to replace stagnant ones can be a viable option.
Key Takeaway
The construction industry after COVID-19 should focus on stabilizing financially. The economic freeze that the pandemic has caused will be a problem until the crisis stabilizes. In the meantime, the forecast of the construction industry is still being determined but it doesn’t mean all hope is lost. As long as the efforts above are properly being implemented, construction companies can bounce back slowly after the pandemic.
