A global pandemic. Economic uncertainty. Delayed and canceled projects. Depleted state and local funds.
These are just a few of the challenges the construction industry encountered in 2020, each requiring its own unique response.
In a year riddled with so much turbulence and uncertainty, one constant remained: the construction industry pushed onward.
Largely deemed essential from the start of the pandemic, the industry continued to operate from coast to coast throughout 2020, proving resilient in the face of unforeseen challenges.
2020 reflection
Whether it was adapting to video-conferencing technology, adjusting to supply chain slowdowns or implementing additional workplace health and safety measures, construction contractors across the U.S. cleared a number of hurdles throughout the year.
“I think AGC (Associated General Contractors of America) members have adapted swiftly to the challenges the pandemic has created,” says Ken Simonson, chief economist at AGC.
Simonson notes, however, that the pandemic is having mixed results across the construction industry.
“What we’ve seen in the last few months is that homebuilding and home renovation have just been taking off, getting stronger and stronger,” Simonson says. “Nonresidential construction bounced back very well from the steep drop-off that we had from February to April. The numbers in May were very good.
“After that, it’s tapered off. From June to September, construction employment for general building contractors, special trade contractors and what BLS (Bureau of Labor Statistics) calls heavy and civil engineering contractors, those numbers have been basically flat and have tapered down a little bit,” Simonson adds.
Construction project delays and cancellations are also a point of focus for the industry. While many contractors were sustained throughout the year by strong backlogs carried over from last year, the pipeline of new projects slowed in many areas, creating uncertainty about the road ahead.