AGC Webinar Notes – March 20th
On Friday March, 20th The Associated General Contractors of America held a webinar to discuss the current impacts of the COVID-19 pandemic and also to offer some insights for firms as the situation moves forward. The main takeaway’s from the session include:
- There have been significant short term impacts on the industry including:
- Disruptions to current work due to missing deliveries, workers, government approvals/inspections/etc.
- Reduced/missed payments by financially distressed owners
- Owners deferring/canceling scheduled projects
- Difficulty obtaining firm commitments for deliveries, workers, approvals for upcoming projects
- Long term, companies should expect:
- A slower rebound in construction than for other sectors as owners, consumers await certainty and repair of balance sheets
- Cutbacks in public budgets other than virus aftermath/preparedness work
- Reduction in the number of construction firms due to reduced work, cash flow
- Possibly less demand than pre-crisis for offices, lodging, large sports and entertainment facilities
- On a positive note, there will be increased demand for projects critical to virus response, hospitals, lodging, etc…
- Lower costs fuel & other commodities will boost cash flow for those still working.
You can view the full recording here: