California contractors still report Covid-related disruptions

Survey finds pandemic has driven up costs; 40% of firms have laid off employees

Los Angeles /
Mar.March 15, 2021 09:30 AM
(iStock)
(iStock)

California contractors are still feeling the pandemic’s impact on business.

Firms responding to a survey by the Associated General Contractors of America said Covid-related delays and disruptions continue, according to the Los Angeles Daily News.

The survey found that 77 percent of contractors delayed projects last year or this year and nearly all said the pandemic overall drove up their costs. Nearly half said those delays stemmed from a shortage of construction materials, equipment, or parts.

More than 40 percent of respondents said they have laid off employees over the last year, although 21 percent said they also added workers.

Construction and permitting fell dramatically in L.A. during the pandemic’s first few months. The pandemic did force some job sites to temporarily shut down, but work resumed at most of them.

Most of respondents — 85 percent — said that backlogs and shutdowns at domestic lumber mills and fabricators caused delays. About 60 percent cited delays for foreign-made materials at ports, and 28 percent reported railway or trucking delays.

Roughly 80 percent of respondents said they are paying more for materials and other supplies, while 41 percent said trucking costs were up.

Shortage of subcontractors caused delays for about a third of respondents; some said they’re now paying more for those subcontractors. And about 40 percent reported delays because a person potentially infected with Covid-19 visited their job site.

[LADN] — Dennis Lynch 


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