Covid 19 Strains Global Construction Industry

The spread of the coronavirus is expected to have a strong negative effect on global construction, with the global construction growth slumping to 0.5 percent CAGR from 3.1 percent growth for 2020. The global construction industry will face disruptions for next 3-4 months from the pandemic as companies globally are being squeezed by the coronavirus outbreak, through labor market and supply chain disruptions, according to Beroe Inc., a procurement intelligence firm. The construction demand will weaken and steel production levels are likely to go down. The construction industry is currently experiencing a dull period which is expected to continue for the medium-long term. As a result of COVID-19, many companies in various trades have revised their scheduled capital expenses due to shrinkages in product demand, lesser commodity prices and, also substantial, uncertainties around supply logistics and the supply of materials. The consumption and production of materials like steel, cement, carpets, luxury vinyl tiles, etc. are expected to dip globally along with trade restrictions amongst countries.