Due to the rapid decline in demand for new projects and the safety regulations related to the new crown epidemic, the output value of the US construction industry is expected to decline by 6.6% in 2020, equivalent to $ 122.4 billion.
According to data from the data and analysis company GlobalData, the latest forecast has fallen sharply compared with the expected increase of 0.6% (US $ 12 billion) before the outbreak.
GlobalData economist Dariana Tani explained: "Canada is expected to experience the largest decline in output (7%), partly due to a sharp drop in global oil prices, while US construction output is expected to decline by 6.5%.
"Although all construction sites in most parts of the United States and Canada are allowed to continue operations, due to the uncertainty of the economic situation and the concern that construction workers are infected by viruses, more and more projects that are in the bidding or final planning stage have been delayed or cancelled. "Dariana Tani revealed.
"In addition, due to mandatory home ownership measures, the closure of businesses across the region and the resulting surge in unemployment, real GDP in Canada and the United States may fall by 6.2% and 5% this year, respectively."
According to Forbes, a survey conducted by Procore on executives in the US and Canadian construction industry owners and developers showed that respondents saw construction sites shut down, shelving 37% of infrastructure projects and 46% of capital improvement projects. The results show that building owners will reduce investment by an average of 32% this year compared to the original 2020 plan.
According to reports, most building owners expect capital expenditures in 2021 to be lower than in 2019. Although most people also expect project delays, supply chain interruptions, and tighter funding sources, the good news is that 81% of people do expect an economic rebound before the end of the year.
