Coronavirus-related supply chain delays threaten developers and builders

Some builders can’t get materials they need because of global shipping slow down

TRD NATIONAL /
Mar.March 23, 2020 03:30 PM
The Port of Los Angeles (Credit: iStock)

The Port of Los Angeles (Credit: iStock)

The coronavirus pandemic is taking its toll not only on landlords and tenants, but also on developers and the construction firms.

The pandemic has slowed global shipping of building materials — and builders are expecting projects to be delayed as a result, according to the New York Times.

Most construction firms have materials in hand they need for projects in the works and some importers have stockpiled materials, but a prolonged crisis could start to impact projects in the near future.

Imports from China to the Port of Los Angeles were down 23 percent in February year-over-year. Contractors have said that shipments of copper have been delayed from China, which appears to be past the worst of the pandemic. Controllers for LED lights imported from China are expected to take six months to ship instead of the usual two, said one executive at a New York-based construction firm.

Governments are also stopping projects. Boston closed all construction sites on Monday and San Francisco ordered work stopped on all projects besides housing developments.

Stoneworkers like PMI International Stone Importers in New Jersey had to cancel a trip earlier this month to Italy to pick out marble for a project.

“Some projects are going to be stalled because of this, there’s no question about it,” said Kevin Gavaghan, a sales manager with PMI.

Investors seem to already be pulling back from the commercial real estate market. Lenders have become more conservative as well as they weigh the risk of delays and stoppages, raising the concern that developments may be scrapped. [NYT]Dennis Lynch


Related Articles

arrow_forward_ios
A mass timber project in Cleveland is now under construction and could be the nation’s tallest when completed. Harbor Bay Real Estate Advisors’ Intro development will rise nine stories with 298 residential units (Credit: Harbor Bay Real Estate Advisors)

Mass timber project in Cleveland could be nation’s tallest

Mass timber project in Cleveland could be nation’s tallest
Joy Construction’s Eli Weiss (left), Maddd Equities’ Jorge Madruga (top), and Drew Katz (right) with 20 Bruckner Boulevard in the Bronx (Getty; Google Maps)

“Dream” comes true for long-vacant Bronx ice house

“Dream” comes true for long-vacant Bronx ice house
Lexington Ave. on May 03, 2020 (Credit: Roy Rochlin/Getty Images)

NYC sees second week with no mid-market deals since onset of pandemic

NYC sees second week with no mid-market deals since onset of pandemic
Inside South Florida’s mall, retail and restaurant reopenings

Inside South Florida’s mall, retail and restaurant reopenings

Inside South Florida’s mall, retail and restaurant reopenings
(Illustration by Daniel Castro Maia)

Not your father’s distress: Down market could be opportunity of a lifetime or a big letdown

Not your father’s distress: Down market could be opportunity of a lifetime or a big letdown
A judge allowed Le Pain Quotidien to be released from 59 of its leases. (Getty, iStock)

Le Pain Quotidien freed from 59 leases in bankruptcy

Le Pain Quotidien freed from 59 leases in bankruptcy
The Centers for Disease Control released new guidelines for offices as they reopen amid the coronavirus. (Getty)

CDC recommendations would drastically alter offices

CDC recommendations would drastically alter offices
IBM CEO Arvind Krishnam and 88 University Place (Google  Maps, IBM)

IBM to leave WeWork’s 88 University Place

IBM to leave WeWork’s 88 University Place
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...