Survey: Nearly 90% of Wis. contractors see project delays or shutdowns this spring

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Nearly 90% of Wisconsin construction companies that responded to a recent AGC of Wisconsin survey say they’ve seen projects cancelled or pushed back in March or April because of the state’s coronaviurs outbreak.

The Associated General Contractors of Wisconsin surveyed 54 of its members to gauge the effects of the COVID-19 outbreak as the construction industry, deemed an essential business, continues to work through the pandemic. Of the respondents, 75% identified themselves as construction managers, general contractors or design-build firms.

The survey found 89% of the respondents reported delays or cancellations of projects in March or April. About 60% of the respondents, meanwhile, said they had seen projects shut down entirely during those months.

These job cancellations or postponements were primarily occurring on health care and industrial projects. More than half of those that reported job cancellations or delays said health care projects were on hold or had been called off, according to the survey.

The survey found 44% of the respondents had laid off field workers, and another 22% said they had furloughed or laid off administrative or project management staff.

More than three in four respondents said they had applied for, and been approved for, financing through the federal Paycheck Protection program, which is intended to help employers cover payroll during the outbreak with low-interests loan that can be forgiven under some circumstances.

“While the results are overall not positive, AGC Members are continuing to focus on providing safe work sites,” said Bob Barker, AGC executive vice president. “We are also finding that members are focused on retaining their skilled workforce, and offering training and other opportunities to keep workers engaged as we learn to deal with this pandemic. We have to be proud as an industry as to how we have responded, and especially proud of the men and women who are on the front lines every day.”

A large share of the respondents also reported trouble with suppliers, lower productivity because of social-distancing requirements and disrupted payment schedules from project owners, according to the survey.

About 60% of the respondents said safety requirements — concerning such things as sanitizing, and keeping employees six feet apart during work — was impedoing jobsite productivity. Most respondents said social-distancing requirements were affecting productivity either “a moderate amount” or “a little.”

Another 62% of the respondents said they’d seen delays or cancellations in deliveries from suppliers. And 66% said the pandemic had hampered payment schedules for project owners. Follow @natebeck9