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The Current State of The Construction Industry

Construction Industry

We all know things are not how they used to be, and with so many changes and new laws being implemented, we thought we would delve into the current state of the construction industry.

There is not a single industry that hasn’t been impacted by the current crisis, but some have faired better than others. While the construction industry took an initial hit when health restrictions and social distancing laws were first introduced, it has maintained relatively active to some extent, and is starting to show signs of a re-emergence.

Construction as An Essential Service

The argument that all construction should be deemed essential is a tricky topic to navigate. Yes, continuing to build infrastructure is crucial to the development of cities and economies, and employment in the industry is vital to keeping it alive, but the health and safety of workers must come first.

With this mind and the need to limit the risk of infection across a variety of construction workers, projects have become smaller and what was once deemed essential construction has changed. Schools, grocery stores, pharmacies and hotels are on the list of essential infrastructures, and if construction is required, it can be completed.

Impacts on The Supply Chain

The closure of borders and cities globally means the supply chain has halted. Australia has become reliant on importing building materials and equipment from overseas, particularly China in the last 10 years, thanks to the cost-effective nature and high efficiency of the products. With China shutting down manufacturing production, the volume of exports significantly declined.

The materials that have been most impacted are:

  • Aluminium
  • Glazing
  • Plumbing fixtures
  • Carpet
  • Tiling
  • Lifts
  • Mechanical and electrical parts

Construction companies who can resume work are facing the struggle of sourcing products and equipment locally at a much higher price point, or are waiting extended periods for materials to arrive from countries who are starting to manufacture them again.

The Way Forward for Construction

Construction leaders need to focus on walking the line between keeping workers safe and continuing to resurrect the industry. Construction companies will be defined by the way they handle this unique situation, and while it is a challenging time, there is hope that all construction will become essential again.

Although construction may be impacted, it won’t be forever, we have noticed a freeze on quoting which may be a short sighted reaction to the pandemic. Now is the time to get ahead of the competition and quote the projects available so you are not fighting with the crowds when things get back to normal. So start planning for the future with Optibuild Services and leave the cost estimates and quotes up to us. Contact our team today to learn more!

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