The greatest impacts of the coronavirus

What do you think is the biggest impact of Corona crisis for the industry in the coming days

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The corona pandemic has affected the global economy and the construction industry both locally and internationally with no exceptions.

Project commencement and completion dates have been disrupted and costs and availability of labor and material has become erratic with the effects of lockdowns and a slowing of production levels.

Supply chains have been disrupted due to industries closing down which has resulted in alternative suppliers raising prices and thus increasing the cost of building projects.

Most businesses have cut back on CAPEX expenditures altogether and have scaled back on recurrent expenditures as well owing to depressed demand. As cashflows are squeezed purchasing power reduces causing a downward spiral that has a direct impact on the whole economy.

The general hope is that as the pandemic eases governments will initiate stimulus packages directed through the development of infrastructure to stimulate employment and the manufacturing sector.

What do you think? Leave your comments below

14 COMMENTS

  1. Now we can say that world is on the way to pass the pandemic, but the future mind will be different in all fields so that the variety will be in the design and the specifications

  2. Now I have also come to realize that some suppliers of certain important materials has been running out of stock which has forced them to refer us to other new supplie of which we also don’t know if their supply will be sufficient for the current demand. This if it can continue as it is might end up closing down many reputable suppliers

  3. Generally, the company will bounce back to its original projections but with delayed takeoff in the execution of the project due to the Corona virus pandemic.

  4. There are bound to be a bandwagon effect of this pandemic across the globe on every nation’s economy on the negative side. The drop in crude oil sales prices will automatically have its toll on all other projects sourced and financed from the federal coffers, hence this project will also benefit from the drop.

  5. In terms of labour costs, since the labour market in Nigeria had been saturated, it will not pose much threat to engage local labour except where there’s absolute need for expatriate hands. In all, there are no visible threats to the projects from the pandemic if all necessary preventive measures are taken to guard against its spread within the project vicinity.

  6. Delayed execution and timely takeoff of the project due to the lull and sleeze in world economy precipitated by this pandemic worldwide.

  7. I think the pandemic has been a stumbling block in the world of construction especially when you are from the country where they have the small economy, small population which forces you to focus on other countries. The pandemic has introduced traveling restrictions and I fear we might collapse if it can continue to be as it is unless borders are open and even then it will not be an overnight thing. we are registered with some global tendering agencies and it’s like we are subscribing for nothing. This has created bankruptcy as it’s not easy to get business in the country with the small population and economy

  8. covid was designed to push AI ML industry ,labor cost wont matter with automation,construction material cost not much changed,construction orders should be affected,unless the bank and team has projection for 3-5 years and beyond

  9. The biggest challenge is that most projects stalled because of fearing that the economy might not recover

  10. This pandemic of a thing has implored negativism in construction industry which be tagged to be cost of materials, labour what have you.

  11. The most devastating effect of the virus on this business will be cash flow, then loss of business as the building industry contracts dramatically as demand disappears as rental and owner held space is lost due to business closure; etc. as the downward spiral of no business, no cash, bankruptcy, excess space availability, etc.
    Things like supply disruption and increased cost price will exacerbate the spiral.

  12. In order to revitalise the economy one industry that could generate thousands of job opportunities is that of infrastructure development and maintenance. However the government has neither the competence or skills to launch and manage the funding and allocation of such works at any of its disparate levels I.e. from local authority to regional and central government. Corruption, incompetence and maladministration would again become the norm.

  13. The supply chain of products has been affected due to shipping delays and alternative markets have increased prices as they are aware of the current demand vs supply impact.

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