The Impact of COVID on Trades and Construction

As the coronavirus continues to advance across the United States, several industries and almost all aspects of chain supply continue to be impacted. Including all kinds of trade and construction industries. Although the construction and trade markets are still ongoing, there is a big difference in today’s market compared to a few months ago, especially in the city of Los Angeles. It will be hard to predict where and when coronavirus will affect more when discussing about trade. Moreover, trade networks are becoming more and more complex as the days go. It is becoming hardtop to move a considerable load and variety of international and local goods.

The demand and supply chain has transformed, and the trade industry is no longer promising if specific metro areas are affected. For example, LA people from this area tend to order things online other than getting them themselves from the shop. It will lead to heightened deliveries and major employing companies such as Amazon that could grow positively. On the other hand, other industries producing other major food items will have to reduce its employees, leading to a low supply of goods. It means that there are too many variables to control during this pandemic. Additionally, as a result of COVID 19 in LA, a submarket of roughly 8500 hotels has suspended their services. In the city of Los Angeles, new construction has also been suspended, taking until mid-April.

California’s Santa Monica alone is home to nearly 100,000 people but often hosts double that number from visiting tourists. Now, with travel down and industries such as hospitality, health care, and logistics are starting to feel the squeeze, even the more affluent parts of the country could be in real trouble. Most essential trades, like electricians and plumbers, still serve Santa Monica and metro areas of LA, despite workers are slowing losing their jobs and money being tight for all but necessities. New job opportunities such as the Amazon announcement to fill almost 100,000 more warehouse positions. Despite these job opportunities opening up, other markets sectors are affected. Considering how the trade industry has been the last few months, national and local leaders responsible for the trade industries need to monitor trade industries closely.

Collectively, there are 9.2 million trade and logistics workers across the country, including truck drivers, material movers, and cargo agents. These are the few backbone people that make up the backbone of the trade infrastructure and are greatly affected due to this pandemic.

Lack of Building Materials

While the full impact of the COVID-19 pandemic remains unknown, the construction industry continues to face shortages. Some American states have suspended construction projects while other locations such as Los Angeles consider residential construction as essential projects that will prove challenging to halt. However, most projects are experiencing significant delays due to the closure of supply companies in China. The United States imports 30% of its construction materials from China. With the China government’s decision to shut all organizations until the outbreak is contained, the United States has many projects at a standstill following a lack of essential construction materials. The ongoing projects are taking longer than usual to complete. During the peak of COVID-19 in February, the Port of Los Angeles reports more than 20% reduction of shipping containers, and this will probably escalate over the coming months. Though some China manufacturing companies begin to operate, they are doing so with a limited workforce, thus reducing the rate of supply.

Reduced Workforce

There are many job positions in the construction field. Successful projects require architects, supervisors, plumbers, engineers, electricians, construction workers many of whom are reporting COVID-related impacts. The most important initiatives taken by people amidst the coronavirus pandemic are staying home and maintaining social distance. Therefore, the labor force is declining as more workers are avoiding construction sites for fear of virus infection. In Los Angeles, technology at construction sites may assist, but this is an industry that needs the physical presence of workers. Even if some projects continue, the rate of workers reporting to work will decline following the orders issued regarding transportation. Such issues cause delays on projects because significant labor force such as plumbers and electricians cannot make it to work. Keep in mind that construction requires a specific step-by-step plan. The absence of a particular employee may force the project to come to a standstill.

The coronavirus pandemic is still impacting various sectors of the economy. During the last few months, the cities of the United States have recorded significant losses in the construction sector. China plays a crucial role in trade, which includes supplying building materials. Therefore, the closure of China’s manufacturing organizations causes significant delays in construction projects. Experts predict that even when Chinese manufacturing companies fully open, the completion of projects will be uncertain because most of the construction materials are likely to be costly. With the current deprived economy, it will not be easy financing projects.


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Libby Austin

Libby Austin, the creative force behind, is a dynamic and versatile writer known for her engaging and informative articles across various genres. With a flair for captivating storytelling, Libby's work resonates with a diverse audience, blending expertise with a relatable voice.
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