{"id":12045,"date":"2020-03-24T15:12:25","date_gmt":"2020-03-24T19:12:25","guid":{"rendered":"https:\/\/www.consigli.com\/?p=12045"},"modified":"2020-12-09T11:05:28","modified_gmt":"2020-12-09T16:05:28","slug":"covid-19-impact-to-construction-materials-2","status":"publish","type":"post","link":"https:\/\/www.consigli.com\/covid-19-impact-to-construction-materials-2\/","title":{"rendered":"COVID-19 Impact: Construction Materials"},"content":{"rendered":"

While COVID-19 has created uncertainty around the world, one thing that remains constant is the health and wellness of our employees, clients, suppliers, subcontractors and partners. We are also paying close attention to how COVID-19 affects our business more broadly and how it impacts our vendors and subcontractor partners.<\/p>\n

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Overview<\/h2>\n

On an ongoing basis, we continue to work closely with all our supply chain partners to better understand any current or potential impacts from COVID-19 on materials used in our projects.<\/p>\n

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We have already seen some early signs of potential impacts to our supply chain but truthfully, it is too early to tell the broader extent of these impacts. The hardest hit countries that supply materials for our industry are: China, Italy, South Korea, Germany, Spain and France. So far, we\u2019ve found that select components used in electrical fixtures and equipment, mechanical equipment and elevator equipment are of the largest concern due to a mix of manufacturing shutdowns and port of call export restrictions. Consigli felt it was judicious to offer insight as to how the virus has already impacted, and may continue to impact, the supply chain of materials. Consigli\u2019s Director of Purchasing Peter Capone offers some current thoughts as to what we\u2019re seeing in the marketplace now, and we\u2019ll continue to monitor the situation.<\/p>\n

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Scale of Impact<\/h2>\n

GLOBAL<\/span><\/h5>\n

Over the past few weeks (and likely weeks to come), global shipping has been one of the biggest casualties. More tonnage of container ships is idled around the world now than during the global financial crisis, according to Alphaliner, a shipping data service. China\u2019s manufacturing sector has been hampered by efforts to contain the spread of the illness, and earlier this month, the Italian prime minister instituted a nationwide lockdown. Already, some lighting fixture components sourced from China that were ordered prior to the outbreak are back ordered. There are also longer lead times on finishing materials like glass office fronts and stone coming from Italy.<\/p>\n

NATIONAL<\/span><\/h5>\n

About 30% of building materials imported to the U.S. come from China, making the country the biggest single supplier, according to Dodge Data. U.S. contractors are already seeing the impacts of the coronavirus on supply chains for building material\u2014from shipping delays to a need to re-source products domestically. And the country is faced with uncertainties over how long countries will be on lockdown, how crews will be impacted and whether project deadlines will have to be pushed out. The American Association of Port Authorities also announced earlier this month that first quarter cargo volumes at U.S. ports could drop 20% or more from 2019 levels because of supply chain disruptions caused by the coronavirus.<\/p>\n

REGIONAL<\/span><\/h5>\n

Supply of materials in the Northeast mirror what we\u2019re seeing nationally with the exception of imports from Canada; however, of materials sourced from Canada (such as structural steel and HVAC equipment) are also starting to become concerning. Newly implemented travel restrictions have not blocked the import of materials, but Canada is ramping up its precautionary measures daily which will eventually affect manufacturing output.<\/p>\n

POTENTIAL DELAYS<\/span><\/h5>\n