AGC: COVID-19 Has Caused Significant Project Delays and Cancellation

The survey finds that pandemic has also reinforced conditions that have historically made it hard for firms to find skilled labor.

By Vincent Salandro

Sixty percent of construction firms report having at least one future project postponed or cancelled as a result of the coronavirus (COVID-19) pandemic and a majority of firms are finding it difficult to find craft workers to hire, according to a workforce survey conducted by the Associated General Contractors of America (AGC) and Autodesk. COVID-19 has prompted widespread delays and cancellations in the construction industry and forced many firms to lay off or furlough part of their workforce for cost saving reasons. The share of firms reporting cancelled projects to the AGC has nearly doubled since an AGC survey in June, when 32% of respondents reported cancellations.

“Few firms have survived unscathed from the pandemic amid widespread project delays and cancellations,” AGC chief economist Ken Simonson said in a prepared statement. “Ironically, even as the pandemic undermines demand for construction services, it is reinforcing conditions that have historically made it hard for many firms to find qualified craft workers to hire.”