As unfortunate as it is, the coronavirus pandemic is gaining momentum once again. At the start of the pandemic, everyone was expecting a vaccine around the end of 2020. With it being nowhere in sight, COVID-19 cases are beginning to rise again. This proves the theory of the ‘second wave’ of coronavirus, foreseen by scientists and health experts, alike.
The start of the pandemic caused many changes across the globe. It affected the construction industry as well, with many projects going on hold. Eventually, it did change for the better. People in their homes decided that they needed some changes to upgrade lifestyle or take up the pending repair work.
However, the second wave could change all that. Many companies expected normal life to set back till year-end. Failure to which could have a major effect on their finances. This will, in turn, affect their paying capacity, leading to a chain reaction affecting the construction industry, too.
Uneven Response
The governing bodies worldwide dealt with the virus in their ways and continue to do so in the second wave.
Due to political uncertainties, the companies are required to change work policies every few months or as soon as some new information comes to light. This makes day-to-day working tougher because no one can correctly anticipate the next set of changes that are going to be implied.
Postponing or Cancellation of Projects
The second wave will require further cuts in profits for companies. In the wake of that, many companies will choose to put their projects on hold or cancel them altogether.
The companies are looking to pull back on the investments till they think that the economy is stable and it is safe to put money in. It is reported that a whopping 88% of firms with a $500 million or more revenue system have postponed or canceled their projects to avoid losses. Thus, it is highly unlikely for businesses to invest in improvement projects. So is with homeowners who are themselves up against the wall as the company losses have started affecting their employment.
Issues Regarding Materials
Because of this being a global issue, the entire supply chain of materials has taken a hit. There is an acute shortage of materials and replacement parts.
During the pandemic, the on-site working went through changes. But due to the increasing number of cases, even masks, PPE kits, and other safety equipment are experiencing short supply.
Disruption At Workplace
Coronavirus changed the workplace. Sanitization stations were put up, and the staff is required to wear masks and PPE kits for safety. Many precautions are taken to make office spaces immune to coronavirus.
But the pandemic caused major disruptions in the workflow, affecting the schedule and disturbing even the best laid out plans.
Many people lost their jobs, which means fewer people to work. On top of that, the people coming in have to monitor their temperatures at regular intervals. COVID tests are mandatory for people who are working, and the result turning out positive is a huge threat.
All people who made contact are then required to self-isolate at home for at least 15 days. All these accumulate and can potentially push the finishing date of the project well over the expected time.
Every industry will have to adjust and adapt to the changes to efficiently tackle the second incoming wave of coronavirus. These regulation changes have bought about a new normal for the industry. Taking the right steps against it will ensure victory.
We at CustomFin, understand this situation well. We have financers standing by to help your clients with their financing problems during these trying times.
