Cam’s Corner: The Impact of COVID-19 on the Commercial Construction Industry.

Cam’s Corner: The Impact of COVID-19 on the Commercial Construction Industry.

MAR 17 2021

COVID-19 has forced a change  in the way we work and interact. Traffic jams no longer existed, holidays were cancelled, local cafes and restaurants became ghost towns. COVID-19 disrupted work on construction sites, too. No matter the scale of the project, the construction industry in Australia witnessed widespread cancellation, slow down or a dry up of projects.

The biggest impact of COVID-19 in the construction industry has been the disruptions in the supply chain for construction equipment, building materials and skilled labour. These delays have impacted the progress of construction projects, leading to a rise in input costs.

Builders have been required to adjust their on-site operations to ensure they follow the strict guidelines set by governments to comply with COVID-19 restrictions. On non-residential building projects, workers have to guarantee social distancing guidelines are maintained when travelling in industrial elevators and completing tasks in groups/ pairs. Workers are required to have sufficient personal protection equipment on site and ensure the cleanliness of equipment. 

The outbreak of COVID-19 and the following economic recession is expected to decline investment in commercial building projects. Potential investors are anticipated to delay planned projects due to uncertainty in the Australian property market and the global economy. According to IBIS World this is expected to contribute to a sharp decrease in industry revenue by 16.1% during 2020-21, falling from a record peak at about $47.0 billion in 2019-20 to currently about $39.9 billion. 

So where does that leave us?

One year on from the pandemic’s commencement we can reflect back on some positives. 

Even though our industry faced disruptions we were lucky to be considered essential and had the ability to work for the majority of the time. 

Not only did we have changes to the way we worked on site, our office staff had to pack up their desks and set themselves up at home. Once they got into the groove of things, working from home was found to have its benefits. The major benefit being that everyone could carry out their daily tasks in the comfort of their PJ’s. Even under uncertain conditions the teamwork and effort from all staff at Rees was phenomenal, everyone adapted to their new work environments with ease and were able to work efficiently during the lockdown period. 

I am so proud of the whole Rees Construction Group team whether they’re in the office or on site, it’s great to be back in the office and looking forward to the year ahead.

Signing off,

Cam Rees

Director- Rees Construction Group

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