How the pandemic impacted the construction industry — and tips on how to recover.

It’s no secret that the construction industry, along with many other industries, took a big hit during the COVID-19 pandemic. In fact, according to sources in the insurance industry, the pandemic negatively impacted more than 70% of all construction companies, whether large or small. Yet, with the pandemic increasingly receding in our review mirror, the construction sector has now begun to rebound. Let’s take a closer look.

Engineering, construction and building materials will play a critical role in our nation’s post-pandemic recovery. Yet, the industry itself also must recover. What steps are construction companies and other industry players taking to ensure a robust recovery of our critical industry? And how deep did the damage go?

Assessing the Damage and Creating Change

The construction industry played a critical role during the COVID-19 pandemic. From building field hospitals to donating life-saving equipment and responding to emergency crises, construction workers and industry players came through when the nation needed them. Yet, the industry itself was not without its own suffering.

Construction sites in many companies were shut down. Sites that remained open had to deal with fewer workers, disrupted supply chains, and operational restrictions, all which made it very difficult to get the job done. These disruptions could be seen in the stock market and other financial indexes. In 2020, public engineering, construction, and building materials companies dropped more than the average in an otherwise normal year.

Fortunately, companies that were nimble and came out ahead were ones that moved quickly, increased productivity, reallocated resources and made tough choices to ensure their businesses remained viable. Construction managers and company executives have also invested heavily in digital technologies and differentiated their portfolios and offerings. Others have made a big effort to cut costs and clean up their balance sheets.

Using 21st Century Methods

Construction companies will need to carefully evaluate what they can do today to ensure a fast and successful return to business as normal. We’re all trying to define and prepare for what’s next. It’s important that construction companies trim down, cut costs and raise efficiencies within their organizations. That means looking at what costs are absolutely necessary and which aren’t.

Next, consider moving what operations you can to a remote setting. Designers and engineers rely heavily on digital collaboration such as building-information management tools. Contractors are also using online tools to monitor their employees’ health and wellness, order necessary materials and practice effective materials and resource allocation.

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