The Q2 2020 USG Corporation + U.S. Chamber of Commerce Commercial Construction Index, released today, reveals a drop in contractors’ confidence and outlook for their industry during the COVID-19 pandemic. However, some Index findings indicate that commercial construction is well-positioned for recovery.
Survey results were collected in April, at the height of shutdown restriction, causing the overall Index to plunge from 74 in Q1 to 56 in Q2. The drop reflects the fact that two of the Index’s main indicators — confidence in new business and revenue expectations — both fell 26 points, to 50 and 44, respectively, revealing the severe impact of the coronavirus pandemic on the construction industry.
Very few contractors (16%) express high confidence in the market’s ability to provide new business opportunities in the next 12 months (down from 54% in Q1). Meanwhile, the percentage expecting to see their revenues decrease in the next 12 months spiked to 2% in Q1 to 21% in Q2. However, contractors’ view of their backlog of upcoming projects dropped only a modest three points, remaining consistent with the first half of 2018.
“No industry has been immune to the devastating impact of COVID-19,” said Neil Bradley, U.S. Chamber of Commerce executive vice president and chief policy officer. “However, the commercial construction industry appears poised for a quick recovery and a return to growth. This is good news for the economy and the millions of Americans who work in the industry. Congress can help by continuing to support the