The Impact of Covid-19 on the Construction Sector and the Aftermath
VRKP Steel
in Blog, Construction Trends, Steel Applications, Steel Industry, Steel Manufacturing, TMT Bars, VRKP Steel Industries
Was your new home under construction before the lockdown?
Be prepared to get the keys to it much later than you expected.
Covid-19 has made a deep impact on different sectors of the economy and the construction sector too has not been spared.
Rise in Prices
Since the lockdown, construction companies and developers have seen a surge in the price of raw materials like steel and iron and other technical construction equipment which are generally imported from China. The low production in China has led to an increase in prices, making construction a costly endeavour.
Depleting Steel Market
Trouble continues to loom over the steel world. Scrapyards have stopped operations, blast furnaces have ceased to function and India and Russia being the only active steel suppliers have been forced to push prices down.
Nevertheless, the demand for strong, durable and high-yielding TMT bars-the prime ingredient for any construction recipe- is still high. Click here to know more about TMT bars.
Labour Problems & Project Delays
For a sector that depends heavily on labour, the lockdown is not really good news. Migrant labourers have been the worst hit in the pandemic and may choose to stay back in their villages long after the lockdown is lifted. This will further delay real estate projects.
156.2 million housing units are currently under construction across the top seven cities in India, of which nearly 46.6 million units were to be delivered in 2020.
A Silver Lining?
The Construction sector is soon to make a safe comeback
The construction sector is essential for the recovery of a battered economy. Its potential to rapidly create jobs and its impact on small and medium size business makes its comeback a necessary one.
In countries that are coming out of the lockdown, construction companies are bending backwards to ensure safety measures, like the following, for workers on-site.
- Hand – sanitizer stations
- Disposable gloves
- Policies that ensure no two trades share the same space
Green Construction In High Demand
In response to a rough economy and climate change, green construction is becoming increasingly popular especially in countries like South Korea, Germany and the US.
The global crisis is a unique opportunity to earmark investments for green construction which is cost and energy efficient.
India ranks 3rd in the top 10 countries for LEED (Leadership in Energy and Environmental Design) and there are over 3000 projects under LEED in India.
Could this be the green signal for India’s construction sector?
Let’s wait & see.