Coronavirus-related slowdowns poised to pummel construction supply chain
(The slowed down supply of materials, such as sought-after Carrara marble quarried in Tuscany, is impacting the construction and real estate development industries.)
While different cities grapple with how major projects should forge ahead鈥斺�攄uring the coronavirus () pandemic, the shipping and sourcing of the used in said projects has slowed to a trickle.
As the recently pointed out, real estate development is a wholly international affair when you consider that the disparate elements that comprise a single construction or renovation project come from, well, everywhere. A decent number of building materials such as concrete and lumber can be domestically sourced, but countries like and , both of which have been profoundly impacted by the pandemic, are major players in this normally robust global supply chain. In addition to items like Italian marble, Chinese copper, and ceramic tile from Brazil, Turkey, Spain, and elsewhere, a slew of materials and equipment颅 sourced from across the globe鈥攑aving stones, lighting, electrical equipment, elevators, and so on鈥攈ave become scarce or are at risk of becoming scarce stateside due to shipping delays, travel bans, shuttered factories, and decimated workforces.
As noted by , imports, including construction materials, arriving at the Port of Los Angeles from China were down 23 percent in February when compared to the same period the previous year. Per the Times, these delays, however, have not prompted widespread layoffs within the construction industry itself鈥攐r .
鈥淚t鈥檚 not like when you build a house and can just go down to a Home Depot and get a different light fixture when you鈥檙e short,鈥� Chris Heger, vice president of Seattle-based construction management firm OAC Services, told the Times. 鈥淭his stuff is all designed and planned years in advance. I鈥檝e been doing this for 30 years, and I鈥檝e never seen anything like this.鈥�
In-development projects have also been impacted by supply chain concerns, as lenders become increasingly uneasy about the unfolding situation and the overall viability of major developments that could potentially be halted mid-construction.
鈥淟enders want to make sure they鈥檙e not going to be stuck with a half-completed project,鈥� Frank J. Sciame Jr., chairman of New York-based builder Sciame Construction, told the Times.
Many American builders already have the materials they need on-hand and, in turn, can commence with projects as planned (provided that the powers that be in some cities have deemed the project as being 鈥渆ssential鈥�) according to The Real Deal. A number of importers have also stockpiled enough materials to keep the supply chain moving, albeit at a slowed pace, for a good while.
But for exactly how long 鈥渁 good while鈥� and how large the impact ultimately is on the construction industry both remain uneasy, unanswered questions.
鈥淗ave people experienced the impact yet? Probably not,鈥� Mike Haller, president of Detroit-based builder Walbridge Aldinger Co., explained to . 鈥淏ut will be impact come? Probably so. There鈥檚 regular building materials that come from China, for instance. There鈥檚 tiles that come from Italy. There鈥檚 stone that comes from Spain. There鈥檚 curtain wall systems that come from Europe鈥� It鈥檚 gonna be impactful. How impactful, no one knows.鈥�