Building and Construction: Back in Business
Sharp rebound brings most active projects back to schedule, according to NKBA’s KBMI.
By Robert Isler
Like its sister segments, Q2 activity levels for building and construction saw a solid bounce from the plunge experienced in Q1. More than half the firms in this sector now say that over 80% of their active projects are back within their timelines. This is a far cry from last quarter, when comments like, “My boss told us to stay home or find temporary work probably until August,” or “Lead times from cabinet manufacturers are extended out to at least 12 weeks,” were not uncommon.
In fact, the percentage of firms saying that most of their active projects are now on schedule improved a whopping 300% over Q1. As for postponed projects, nearly 7 in 10 report that they expect a resumption by the end of this month. Only 20% indicated those projects will likely slip into 2021. Delays are largely due to client wishes. Customers cite safety and personal financial challenges as the top reasons for putting projects on hold.
More than half the firms in the building and construction segment now say that over 80% of their active projects are back within their timelines.
The most significant challenges are led by “disruptions in the supply chain,” selected by 18% percent of respondents, followed by “client finances/budget issues” at 14%. Tied at 10% apiece are “labor/workforce disruptions” and “internal safety concerns.” Interestingly, “more e-business and online sales and meetings” also made the top five, at 9%.