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.
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