The Covid-19 crisis has had major impacts on every industry, and construction is no exception. Working in marketing or in the C-suite of a construction firm, you already know how important it is to keep up to date with changes in the industry. Will the crisis affect your supply chain? What will the long term effects of the crisis be? How long will it take the construction industry to recover from Covid-19 and its fallout?
We’ll get into more detail later in the article, but in the short term growth in the construction industry is expected to be seriously slowed as a result of the Covid-19 pandemic. Like many other industries, construction has been affected, but unlike other industries, construction is still expected to show positive growth in 2021. We’ll go over that as well as some of the longer-term predictions for the industry. With this information, we hope you’ll be able to guide your organization through industry fluctuations for many years to come.
Construction Predictions for 2021
According to industry studies, total spending in the construction industry is expected to increase by one to two percent during the year. This is down from pre-March forecasts that predicted a rise of six percent during the year. Both residential and nonresidential construction are expected to remain within plus or minus one percent of their 2020 levels, while spending on nonbuilding infrastructure is expected to increase by between six and seven percent during the year.
Current projections forecast a decline in spending on nonresidential building projects through the end of 2021, with growth in nonbuilding infrastructure spending remaining stagnant during that period. Spending in residential construction declined in 2020 but is expected to rise to near pre-Covid levels shortly after the beginning of 2021 and experience moderate growth through the beginning of 2022.
You already know one of the major immediate impacts of the pandemic was project cancellations on a mass scale. Problems like supply chain disruptions and difficulties in encouraging workers to follow social distancing protocols have continued to plague the industry in the months since the pandemic broke out. In the coming months supply chain difficulties will make it all the more important for construction firms to find suppliers for the materials they need.
Rising costs, labor shortages, difficulties in procuring building materials, and increased regulation have been industry problems since before the pandemic began, and they are not going away on account of Covid-19. Digitization is expected to remain an industry trend throughout the pandemic and into the future, and at this point it still remains unclear what “normal” will look like after the crisis is over. A volatile industry like construction is hard to predict at the best of times, and the Covid-19 pandemic has made everyone’s best predictions uncertain. In times like these, it’s more important than ever to have the tools you need to find the right partners for your organization.
How Kompass can Help Your Organization
With tools like EasyBusiness and the Kompass database, Kompass can help you find the new partners you’re looking for—whether that means new clients, suppliers, or other partners both at home and abroad, Kompass helps connect B2Bs across the globe. Our database currently has more than 44 million companies listed, helping B2Bs in all sectors take their business onto the international stage.
Thanks to tools like charts, tables, and smart data, you can conduct a market analysis through Easybusiness.
No matter the size of your company, Kompass can give you the tools to find the right partners. We serve clients ranging from startups to small businesses all the way to corporations with thousands of employees. Whatever part of your value chain needs a new partner, Kompass can help you out.
Take a look at what Kompass has done for other exporters in the Construction Industry:
Company: LANDING INGENIERIA
Activity: Civil engineering contractors NES
Resp. of Public Tenders
Need: Access and receive alerts of new public tenders
Kompass solution: Public Tenders subscription
Results: Access to a large number of public tenders providing us new opportunities
“Public Tenders is very useful for us because they have a very broad database that gives access to a large number of bids and all the information pertinent to them. In addition, it allows us to keep abreast of the new bids published in the different Public Administrations.”
Company: EMINCELIK TERMOSIFON SOBA SANAYI VE TICARET LIMITED SIRKETI
Activity: Heating, ventilation, air conditioning and refrigeration equipment
Need: Identify new potential distributors abroad
“With using Kompass Easybusiness, we created target lists easily and connected with companies”