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 02:00 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
Howard Johnson at 7432 Reseda Boulevard and Hotel Solaire at 1710 7th Street

LA will buy mostly-vacant motels for Project Homekey

LA will buy mostly-vacant motels for Project Homekey
Assessor Jeffrey Prang

LA County property values may tumble in next tally: Assessor

LA County property values may tumble in next tally: Assessor
Tents in Los Angeles, California (Credit: APU GOMES/AFP via Getty Images)

LA officials cut $300M homeless housing deal

LA officials cut $300M homeless housing deal
L.A.’s office market continued to weaken through the third quarter

LA office market vacancy rises to 15% in Q3

LA office market vacancy rises to 15% in Q3
Donald Bren Hotel Irvine and Fashion Island Hotel (Credit: Anne Cusack/Los Angeles Times via Getty Images, and Google Maps)

Irvine Company’s 1,700 layoffs mostly hit staff at 3 hotels, resorts

Irvine Company’s 1,700 layoffs mostly hit staff at 3 hotels, resorts
Tim Naughton and a rendering of the project (Credit: OFFICEUNTITLED and AvalonBay)

AvalonBay secures $167M loan for Arts District resi project

AvalonBay secures $167M loan for Arts District resi project
Metropolis Los Angeles, and The Century Plaza

Surprise, surprise: LA condo sales are way up

Surprise, surprise: LA condo sales are way up
1.6 million square feet of office space was leased in L.A. in Q3

LA office market leasing fell 61% in Q3

LA office market leasing fell 61% in Q3
arrow_forward_ios

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

Loading...