Most construction firms suffering delays from pandemic: TRD analysis

Administrative issues overtake supply chain problems as main cause of delays

New York Insights /
Apr.April 10, 2020 03:45 PM
Over half of residential construction firms are facing delays according to a survey conducted by the National Multifamily Housing Council of 135 multifamily construction firms (Photo by Erik McGregor/LightRocket via Getty Images)

Over half of residential construction firms are facing delays, according to a survey by the National Multifamily Housing Council (Photo by Erik McGregor/LightRocket via Getty Images)

A survey of 135 multifamily construction firms conducted from March 27 to April 1 by the National Multifamily Housing Council found 55 percent were experiencing construction delays. 

In the early days of the coronavirus scourge, U.S. builders’ main concern was disruption in the supply chain for materials from hard-hit areas, notably China and Italy. But as the U.S. has become an epicenter of the crisis, with social distancing and construction moratoriums proliferating, materials are quickly becoming a secondary concern.

 

Among those experiencing delays, the biggest causes were slow permitting (76 percent), a construction moratorium (62 percent) and delays in starts (59 percent). Meanwhile, 73 percent responded that lack of materials had not had an impact, and 88 percent reported that prices for materials had not risen.

Most companies are also pursuing new strategies in response to the pandemic. Of the 73 percent of respondents who said they had implemented new strategies, two-thirds were “using technology to replace in-person transactions like inspections and approvals,” 52 percent were “staggering shifts to reduce on-site exposure” and 43 percent were “sourcing materials from alternative locations.”


Related Articles

arrow_forward_ios
Canada, South Korea, Germany, Singapore, and the UK top the list of countries investing in real estate. (Getty)
South Korea now No. 2 foreign investor in US CRE
South Korea now No. 2 foreign investor in US CRE
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Manhattan job losses in Q3 worst of any large county in the US
Manhattan job losses in Q3 worst of any large county in the US
R&B Realty's Aron Rosenberg and Maverick's David Aviram of Maverick with 28 West 36th Street and 32 West 39th Street (Google Maps)
Midtown landlord sues to stop foreclosure by Maverick
Midtown landlord sues to stop foreclosure by Maverick
HSBC COO John Hinshaw (Getty, iStock)
HSBC to shrink its office footprint amid shift to WFH
HSBC to shrink its office footprint amid shift to WFH
(iStock)
US hotel market had worst year since the Great Depression
US hotel market had worst year since the Great Depression
New Yorkers can enjoy going to the movies again on March 5. (iStock)
Showtime: NYC movie theaters to reopen
Showtime: NYC movie theaters to reopen
Fisher Brothers partner Kenneth Fisher and 605 Third Avenue (Photos via Getty, Fisher Brothers/Illustration by Kevin Rebong for The Real Deal)
What tenants pay Fisher Brothers & JPMorgan at 605 Third Avenue
What tenants pay Fisher Brothers & JPMorgan at 605 Third Avenue
666 Greenwich Avenue and David Koraca (Photo via StreetEasy, Goldman Sachs, Facebook)
Convicted fraudster illegally occupied posh West Village rental: lawsuit
Convicted fraudster illegally occupied posh West Village rental: lawsuit
arrow_forward_ios

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

Loading...