How has COVID-19 impacted the construction industry in Pennsylvania? Even though building projects have resumed across Pennsylvania, the construction industry is still facing new and unprecedented challenges in the wake of the COVID-19 pandemic.
How has the pandemic affected the construction industry in Pennsylvania?
Hoegen & Associates, P.C. in Wilkes-Barre, PA, explores everything you need to know about COVID-19’s impact on the construction industry. Let’s get started.
Construction Has Resumed in Pennsylvania
Unemployment claims Pennsylvania skyrocketed to 1.7 million cases during the shutdown in March and April of 2020. 79% of construction workers made up the largest percentage of these claims.
Fortunately, new safety protocols made it possible for workers to return and projects to resume. But with the economy still recovering and the uncertainty of how COVID-19 will play out this fall and winter, new construction may stall﹣or be on the decline.
Economic Uncertainty Has Slowed Down Construction
Global construction growth is expected to slump and face disruptions in the coming few months. There have been shortages and delays of exported construction materials, such as steel, wood, and aluminum, and these delays are expected to continue.
We’re seeing it here in Pennsylvania, as well. Both residential and nonresidential construction activity in the Greater Pittsburgh region, for example, is down significantly compared to last year. It’s predicted that new construction projects could fall nearly 30% in the Pittsburgh metropolitan area this year.
Some contracts may be able to proceed or extend deadlines in the face of these setbacks. We’re seeing some major construction projects resume across Pennsylvania; but until there is a vaccine or major change in the pandemic, our analysis of the scope of COVID-19’s impact will be ongoing.
Construction in Eastern Pennsylvania
As for smaller cities like Wilkes-Barre, Scranton, and Allentown, PA, we can expect to see gradual, slow progress similar to what’s happening in the major urban centers.
Of course, it’s important to keep in mind that the population in Eastern Pennsylvania is smaller than the major cities of Pittsburgh and Philadelphia. But our smaller population could mean fewer cases of COVID-19 hitting our region. This, coupled with the safety measures that are in place for construction workers, could keep the construction industry afloat despite the challenges.
Withstand the Effects of COVID-19
Construction professionals are in for the long haul. Missed or delayed deadlines, contract breaches, and disagreements between clients and contractors can still arise during the COVID-19 pandemic. That’s where construction law can help.
If you’re facing challenges in the construction industry, the attorneys at Hoegen & Associates, P.C. are ready to help. Contact us today!