Some Effects of Covid-19 on the Construction Industry that Might Stick Around

As states across the country begin to open or ease lockdown restrictions, it’s challenging to keep track of what’s happening in individual municipalities. Even as nonessential construction projects get the green light in more locales, it appears Covid-19 will have a lingering impact on the overall construction industry. Some of the predictions for what changes will continue after our current health crisis include; new rules for job site safety, people working remotely, adjusted (longer) project schedules to accommodate new safety protocols, augmented influence from unions, new demand for different types of projects, and altered supply chains. We see new workplace safety protocolsmanaging various delays, and the decrease in nonessential travel, as the factors most relevant to the contractors with whom we work in the swimming pool, outdoor construction, and home improvement sectors. Read our top 5 Takeaways for our Builders.

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New workplace saftey protocols, communication and documentation

With one in five worker deaths happening in construction and almost “half of all deaths on construction sites occur[ing] in companies with ten or fewer employees or among those who are self-employed,” construction companies are no stranger to safety protocols. However, with Covid-19, worker safety takes on a different dimension.   

Making sure workers maintain safe distances of 6 feet, disinfecting equipment between uses, regularly washing their hands, wearing proper PPE (and not sharing it with their coworkers), calling in sick instead of reporting to work while exhibiting Covid-19 symptoms, will require vigilance and ongoing communication. Even if workers are amenable to these adjustments, changing so many ways of doing “business as usual” will require a concerted effort on everyone’s part. The Associated General Contractors of America (AGC) recommends discussing all of the new Covid-19 measures outlined by OSHA and the CDC with your crews. In addition to talking with your teams, workplace posters and signs or announcements posted on social media, in emails, or texts can highlight the essential changes all workers should be mindful of while on the job site. 

The AGC also recommends companies maintain proper documentation. The AGC explains that following these safety protocols “will not only help your job sites stay open but will help improve your employees’ perception of safety too.”   What does this look like in practice? To properly document what’s happening at your job site, ask your crews the same series of questions every day. Questions like “Did all workers follow social distancing requirements?” and “Were commonly used areas cleaned?” and “Any COVID-19 related delays?” can help you monitor workplace safety, especially if you have crews working at multiple sites or you are unable to be present at a job site. Questions like these and ones that gather feedback about worker health, can help you accurately identify and verify delays or safety issues, especially should you need to prove that your company is in compliance with the necessary safety measures.

Technology can assist workers to implement some of the Covid-19 workplace safety protocols. If investing in new or custom software is not in your sights, there are free tools. Even something as simple as the tape measure app available for your smartphone can help. Without getting out a bulky (and awkward) tape measurer, workers can quickly assess how far apart they are actually standing or working. Instead of paper, use an online survey to gather daily worker feedback. This will not only eliminate the need for paper, it can eliminate the need for data entry analysis and transcribing responses at a later time. The Google Forms app is free and an easy to use tool. At the end of the day, you can text your crew a link to the form and answer your questions before they end their day.

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Managing Delays

One thing Covid-19 is teaching everyone is to expect and manage delays. For small to medium-sized businesses in the home improvement/ outdoor construction sphere, this has meant project disruptions and various delays. According to a survey conducted in May by the AGC, approximately two-thirds (68%) of its participating members had to suspend projects already in progress during April and May, or had to outright cancel projects that were scheduled to begin in April, May, and/or June. Members indicated the most common reason (top three) for project suspension included owner’s:

  • Concern of Covid-19 danger (37%),

  • Anticipated decrease in demand for the project (31%), and

  • Compliance with state or local orders to stop “non-essential” activity.

The survey also found that shortages of personal protective equipment (28%), construction materials or parts (26%), craftworkers (25%), needed government action or workers, including workers that might be needed for inspections, permits, etc. (16%) delayed or interrupted their projects. Other reasons for delays included an infected worker on the job site (20%) and financing or cash flow problems (8%). However, another third stated none of these interfered with their project’s progress.

Nearly half (48%) of the survey respondents were notified by their suppliers that their deliveries would be late or canceled. Close to one fourth (21%) of participants began working on new or expanded construction projects as a result of the Covid-19 pandemic. It should be noted, these projects have been commonly identified as “essential”  and included construction for medical facilities (e.g., hospitals, labs, testing facilities), construction for manufacturing and distribution, and projects related to highways and infrastructure. 

While inspections and permits have been delayed across the country, some building officials are implementing inexpensive or free technology to help them maintain social distancing and get through their backlog. Apps like FaceTime, Skype, Google Duo, and Microsoft Teams make it easy for officials to conduct inspections via video. An added bonus is how this process eliminates travel time. According to Construction Dive, it is likely that the states that have started programs to integrate video inspections will continue to do so after the Covid-19 health crisis.

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Reduced Nonessential Travel Could have a Positive Effect for Outdoor Construction and Swimming Pool Contractors

Until we have a vaccine or herd immunity, social distancing seems to be a part of our foreseeable future. The CDC recommends Americans to stay at home as much as possible and to avoid all nonessential travel. Although our country is facing record high and rapidly rising unemployment rates (as high as 14.7% in April, according to the U.S. Bureau of Labor Statistics), the largest group of affected are workers between the ages of 16 and 19. Additionally, 13% of households earning over $100,000 experienced at least one job loss in March, as opposed to 19% for those earning $40,000-$100,000, and 40% of households earning less than $40,000. This means a significant number of homeowners are securely employed, safely working remotely in the comfort of their homes. As summer approaches and family’s travel plans are upended, many will likely start looking at their own homes for their next staycation. Nothing says a backyard retreat, quite like an outdoor living space or a swimming pool. So while social distancing and recommendations to avoid nonessential travel is tragic for the travel, hospitality, and tourism sectors, it looks to be good news for home improvement, outdoor construction, and swimming pool contractors. 

In fact, since March, we’ve seen an influx of homeowners interested in getting connected to builders in their area for swimming pools, spas, outdoor kitchens, and more. If you are interested in learning more about our service, we’d be happy to tell you how it works. With interest rates at record lows, and home prices remaining stable, even increasing in March, we anticipate this trend to continue throughout the summer.

Even though the homeowner does not need to accompany or meet you while you conduct an onsite (outside) visit to survey the particulars of their property, if your business is in an area where nonessential construction is still barred, using technology can help you avoid interruptions to some of your business processes, like meeting with homeowners to provide an estimate. Just as some business officials are using free or inexpensive apps to conduct video inspections, we know several contractors who are successfully working with homeowners using video technology to discuss their client’s project ideas. Video technologies like FaceTime, Skype, Google Duo, and Microsoft Teams, can help you approximate face-to-face communication while following your municipality’s directives. When people need to speak with their hands or show you something relevant to the topic at hand, a phone call will not suffice. Meeting via video has the added benefit of flexibility. Video conferencing can accommodate various schedules and eliminate the need for transportation necessary for face-to-face meetings, saving contractors time, and additional expense. 

Other ways technology can assist in communicating ideas about the homeowner’s project is to ask homeowners to share images of the projects they admire and would like to emulate. Pinterest is a perfect app to use for this purpose. If you are unable to visit the homeowner’s property because of your area's stipulations, Google maps can give you a bird’s eye view of the homeowner’s land and where their home and other structures are located. Be sure to check with the homeowner to make sure the image is up-to-date and accurately depicts their foliage. If a homeowner has a copy of their land survey, they can email it to you until you can get an official copy, if needed. While these technologies can help your business avoid some interruptions while Covid-19 strictures are in place, we think the conveniences they provide will give them a place in your business’s repertoire long after the novel coronavirus. 

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Our Top 5 Takeaways for our Builders:

  1. Keep good records of what is happening on your job site.

  2. Use inexpensive or free technology when it helps with your productivity and more easily maintain social distancing.

  3. Even if you are going to build in an area with unclearly stated and enforced Covid-19 protocols, err on the side of safety.

  4. Communicate with the homeowner how you are protecting your crew and the homeowner while you are working on their property. This is especially true if the homeowner and their family will be at home during the construction.

  5. The only downside of the increased homeowner demand for pools is the delays in construction. Try to Keep Riding the Wave! Delays caused by the shut down coupled with the seasonal nature of the construction cycle means that in some geographical areas, the construction season has already been reduced by half. Even if you are booked to the end of your 2020 build season (Congratulations!) we don’t think this is the time to turn anyone away. Find out if the homeowner is willing to wait for a later build date. Consider offering a discount, if that makes sense for your company. The point is, there’s no way of knowing if this kind of demand is the new normal. Chances are it’s not. As soon as one of the factors contributing to the demand shifts, we think homeowner demand will change, too.