Surviving the Pandemic: The Future of the Controls Industry
The current health crisis has left many contractors feeling less than optimistic about the industry’s outlook. But the recent USG and U.S. Chamber of Commerce Commercial Construction Index report says commercial construction is well-positioned for recovery and positive change.
This is good news for building managers, engineering firms, and general contractors who have seen their businesses affected by COVID-19 related slowdowns and shutdowns. While delays and revenue decreases are still expected, most contractors reported they’re less concerned about them as they look to the future.
What the Numbers Show
Some states, of course, have been hit harder than others. Postponed and canceled projects resulted in close to a million jobs being lost in what was considered an “essential” service. But many states have already restarted commercial construction jobs with new safety procedures put in place to minimize the pandemic’s risks.
Late March saw the average of total projects bidding in the U.S. suddenly plummet. By May, though, the weekly rolling average leveled out. As more projects are now being allowed to move forward, experts are hopeful the industry will avoid another downward trend.
Other trends over the past few months include:
A steep increase in the number of construction projects in the planning or recently bid stage placed on hold.
Construction project bid dates are being extended.
An uptick in abandoned construction projects, averaging about 10% above 2019 numbers.
Most industry experts believe things should start to bounce back in 2021 as lockdown orders are more widely lifted with many predicting up to a 20% increase in construction starts.
The Midyear Outlook
When the post-crisis recovery begins, the market will look to adjust to whatever the “next normal” looks like. Businesses will need to ask themselves how they’ll stay competitive and emerge stronger in the wake of the crisis. The path forward is filled with uncertainties but there are some bright spots those in the industry can focus on.
Altered jobsite processes and digital technologies could help companies improve supplied material quality and availability, adjust costs, and meet new project deadlines.
A wider embrace of digital capabilities to design and build new projects can result in stronger vendor relationships in areas like building information modeling (BIM), augmented and virtual reality (AR/VR), and artificial intelligence (AI).
Using technology to decrease job site time thus enhancing employee safety, whether through creating materials with a strong prefabrication process or further leveraging current Cloud Engineering technologies.
Looking ahead to the remaining months of 2020, the level of recovery will depend on how things stand with the COVID-19 pandemic. As of this writing, Florida is facing a resurgence of the virus and some businesses are being forced to shut down yet again. Those in the commercial building industry are being advised to expect several lean years with the current slump not likely recovering until 2021.
Keeping Confidence High
It can be challenging to keep a positive outlook during times like these, but many in the industry are determined to use the pandemic as a catalyst for positive change. Technology that allows better collaboration and innovation as well as improves safety procedures is seen as one valuable option. SFC helps companies create better workspaces for employees and customers alike, improving reliability, reducing the consumption of natural resources, and extending equipment’s useful life.