We’re struggling and it’s not getting easier. Just look at a recent survey of construction firms done by the Associated General Contractors (AGC) of America that says forty percent of them have reported layoffs because of the widespread cancellations of projects due to the Coronavirus. More sobering numbers from the survey might be that more than half have had to bring projects to a halt with 74-percent applying for Paycheck Protection Loans in order to hold on to their staff.
AGC chief economist Ken Simonson said, “Owners are not only halting many current construction projects but are canceling a growing number of projects that have not yet started. Inevitably, that has caused a growing number of contractors to furlough or terminate job site workers.”
Employers are following the money or, at least, trying to.
The AGC says, “In a sign that contractors are eager to maintain their payrolls if possible, three-fourths of the respondents said they had already applied or intend to apply for the new Paycheck Protection Program loans. However, only 10 percent said they had already received a loan through the program, which began on April 3. Association officials noted that 48 percent of respondents said they wanted Congress to increase funding for the federal loan program, given the widespread demand for the program.
They called on Congress to quickly inject more capital into the loan program. Association officials also urged Washington leaders to begin work on broader recovery measures that include new funding for infrastructure programs, among other measures to rebuild the economy.”
For more details on the survey, click here.
View AGC’s coronavirus resources and survey. View comparative data here.
And here are some additional comments from Ken Simonson.
