Exploring the Early

Impacts of the COVID-19

Pandemic on the
Construction Industry
in New York State
ORENCIA | SARIMO | VILLANUEVA
Introduction
Exploring the Early Impacts of the COVID-19 Pandemic
on the Construction Industry in New York State
INTRODUCTION
According to studies, the 2020 economic collapse triggered by the COVID-19
pandemic would be the deepest since the Second World War.

Many of the pandemic's consequences have a direct impact on the construction

industry, which contributes roughly 5% of total US GDP (contributed 4.1% in 2019) and
3.1% of GDP in New York. The construction business is one of the largest in the world,
and it has played an important part in reviving the US economy.

According to the International Monetary Fund (IMF), "quarantines, regional

lockdowns, and social distancing—all necessary for virus containment—curtail
mobility, disrupt supply chains, and lower productivity."

GROUP 8
INTRODUCTION
Furthermore, because the nature of the pandemic's impacts on construction
projects and workers is primarily influenced by the location of construction
businesses and their assigned projects, differences in the impacts of COVID-19 on
the construction industry in different locations, as well as the roles of construction
industry professionals, must be considered.

The overarching research question are: what is the impact of the COVID-19
pandemic on the New York State construction industry?

GROUP 8
INTRODUCTION
The overarching research question are: what is the impact of the COVID-19
pandemic on the New York State construction industry?

Moreover, this study addressed two additional questions:

(1) were specific groups more negatively affected based on:
(a) primarily working in or out of New York City; and
(b) their position in the construction process as builders or non-builders?
(2) "How can the construction business prepare for future disruptions?"

GROUP 8
IMPACT OF COVID-19 ON THE
CONSTRUCTION INDUSTRY

During the epidemic, necessary building services continued in

New York State. Several definitions are considered necessary
construction under New York State Executive Order 202.6. One
definition is "building required to ensure the health and safety
of occupants of a structure."

Based on the research, single-family residential development

will expand by 7%, commercial building will increase by 5%,
and manufacturing will remain level in 2021.

Choi and Staley identified regulatory confusion, vulnerable

employee risk, inadequate COVID-19 literacy, and supply-
chain limitations as issues for the construction industry
exacerbated by the pandemic.
IMPACT OF COVID-19 ON
CONSTRUCTION PROJECTS

The pandemic's impact extended to suppliers and vendors

who were unable to meet demand, affecting the timetable of
construction projects.

In a survey of 53 construction firms in New York State, 81%

reported project delays due to extended lead times or
material shortages, while 62% reported delivery delays.

According to Chivilo, Fonte, and Koger, the nature of the

pandemic's impacts on construction projects and workers is
mostly impacted by the location of construction enterprises
and their assigned tasks.
IMPACT OF COVID-19 ON CONSTRUCTION
FIRMS AND COMPANY MANAGEMENT

In a Turner and Townsend survey for the U.K, half of the

respondents reported a "increase in contractual conflicts
since the start of the pandemic". Furthermore, "83% of
respondents reported a pause or temporary site closure due
to COVID-19, and 72% reported lower project production
compared to pre-pandemic levels."

The pandemic has led to the emergence of both short-term

and long-term trends in the construction industry. Due to the
requirement to operate remotely, the use of digital
collaboration platforms has expanded.

Overall, 57% of US contractors reported an increase in the

pace of technology adoption in their organizations. They
specifically stated that their companies have implemented
more project management software.
IMPACT OF COVID-19 ON HEALTH AND
SAFETY IN THE CONSTRUCTION INDUSTRY

The COVID-19 epidemic prompted the implementation of

numerous public health emergency standards and
restrictions across various industries. These rules and
regulations do not override existing municipal, state, and
federal laws.

Recommendations for controlling COVID-19 in the

construction industry include preventive measures to protect
construction workers' health and safety, as well as COVID-19
education, in which employers keep their employees up to
date on relevant information to keep them safe.
IMPACT OF COVID-19 ON COMMUNICATION
IN THE CONSTRUCTION INDUSTRY

During the pandemic, the number of people working remotely

across the country increased dramatically, with over half of US
workers questioned reporting that they were working from
home.

Working from home might be stressful for some individuals.

Employees across industries said that the amount of frequent
meetings they had risen following the outbreak. Many people
reported feeling mentally and emotionally exhausted when
working remotely.

On the other hand, "almost 60% of Americans believe COVID-19

has improved the way we work." "Almost 99% of respondents...
said that their employers exhibit empathy for staff," and "85%...
believe that their managers do an excellent job of
communicating and updating staff about the company's
situation and ongoing response to the pandemic."
METHODS AND
MATERIALS

GROUP 8
CATEGORIZATION OF FACTORS THAT IMPACTED THE CONSTRUCTION
INDUSTRY AS A RESULT OF THE COVID-19 PANDEMIC

Company Management Construction Project

Contracts and legal issues Project team size

Lack of new contracts Project suspension or shutdown
Company recovery time Schedule interruption and delays
Workforce reduction Supply chain issues
Financial constraints Productivity
Technology adoption Project Planning

Health and Safety Communication

COVID-19 health and safety regulations Virtual meeting

Workplace safety Remote work
RESEARCH FRAMEWORK

PHASE 3 PHASE 4
PHASE 1 PHASE 2 Survey
Survey Data
Development
Literature Review Identification and Analysis
categorization of
factors
 SURVEY DESIGN

Six demographic questions and 25 comments on a Likert scale were included in the survey form. The
25 Likert-scale statements were grouped using the four impact categories (company management,
construction projects, communication, and health and safety). The components in the statements
on the Likert scale were derived from the literature review, and the survey questions were pilot tested
with industry experts in the construction sector.
 Other
Vendor/Manufacturer
1.6%
8.2%

Client
16.4% PARTICIPANTS
Contractor
44.3% The participants were asked to
indicate their organization type. The
majority were working as contractors
or working in architecture/engineering
firms

Architect/Engineering Firm
29.5%

Figure 1. Participants’ organization type.

 Other
9.8

Architects
Upper Management
6.6
27.9

Contractors PARTICIPANTS
8.2
The participants were also asked to
indicate their role within the
construction industry.

Project Managers
18

Engineers
24.6

Figure 2. Role in Construction Industry

 Less than 5 yrs
More than 20 yrs 16.4%
21.3%

PARTICIPANTS

16-20 yrs The majority of the respondents had

9.8% six to ten years of experience.
Approximately 85% of the participants
6-10 yrs had more than five years of
32.8%
construction experience

11-15 yrs
19.7%

Figure 3. Years worked in the construction industry.

 Company Management
78.6% had contract productivity dilemmas and
21.3% had legal repercussions due to contractual
issues that were impacted by the pandemic.

Participants' Businesses

Results
71.2% had struggles securing new projects, and
62.7% had troubles securing new clients.

Analysis of Overall Survey Results Company cost cuts

75.4% strongly agreed that their company had to
cut costs, and 81.9% strongly agreed embraced
new technology as a result of the pandemic.

54.1% agreed or strongly agreed that adaptations

brought about by the pandemic influenced their
company.

Results
Analysis of Overall Survey Results
Construction Projects
54.1% said the pandemic decreased the size of their
project teams, 75.4% said the pandemic caused
active projects to be stopped, and 72.1% said the
pandemic caused the shutdown of their company's
building sites.
The pandemic affected project scheduling delays,
according to 93.4% of respondents. Furthermore,
due to the pandemic, 80.4% of businesses
encountered material shortages and procurement
disruptions.
Communication
96.7% fully agreed or somewhat agreed that in-
person consultations were restricted, and 95.1% fully
agreed or somewhat agreed that some
consultations transitioned to virtual formats.
 Meeting Project Schedules
73.8% of respondents said their companies had to
request operation schedule extensions. During the
pandemic, more than half of respondents said their
duties had been reduced, and a similar percentage
said they had spent more time planning projects.

Results
Analysis of Overall Survey Results
Health and Safety
47.5% of respondents in the health and safety
category strongly or somewhat agreed with the
statement that COVID-19 safety standards were
challenging to follow. 44.3% said the new PPE
requirements were hard to meet, while 55.7% said
the new policies made them feel secure at work.
And 24.6% fully agreed or somewhat agreed that
their developments had high COVID 19 positivity
rates.
 Working Remotely
65.6% confirmed working from home, while 34.4%
confirmed not working from home.

When asked how the pandemic had affected their

efficiency, 31.1% said it had made them less
productive, while 32.8% said it had made them

Results
more efficient.

Cross-tabulation findings show that those who

Analysis of Overall Survey Results worked from their homes reported better
productivity (40%) than those who did not work
from home (19%).

Furthermore, when it came to embracing new

technology, the authors discovered a substantial
difference between those who worked remotely
and individuals who did not.
 DISCUSSION
COVID-19 PANDEMIC FIELD-BASED WORK VIRTUAL MEETINGS

When it comes to business Participants mentioned Virtual meetings were not

operations, building finding it challenging to always successful
initiatives, health and land new clients and because, according to the
safety procedures, and projects. majority of participants,
communication, the nonverbal clues and
COVID-19 pandemic has personal ties were lost.
significantly disrupted the
construction sector.
CONCLUSION
The findings of this study relate to the pandemic’s
impact on the construction industry in New York State
based on four themes, namely company
management, construction projects, health and
safety, and communication. This study also explored
the impact of the pandemic on builders and non-
builders and those working within and outside New
York City.