Okay, okay. Chances are you've heard about the coronavirus epidemic taking the media by storm. The spread of this deadly virus has disrupted cities, air travel, and shut down factories in China. Not only has this virus caused a huge impact on human health, but our construction industry is about to face delays in a major way. If you are currently working on renovations or expanding your community, you too could be another victim of these delays.
Global shipping is getting tremendously out of sync. Re-routing cargoes and reducing shipment into Chinese ports will effect deliveries for months to come. In the United States, local construction projects are being postponed indefinitely. Seaports on the U.S. West Coast are preparing for disruptions, and expecting imports to continue to be delayed into the month of March.
Members of the U.S. agriculture and forest product exports are finding shipments stuck in numerous places. Rail ramps, origin points, truck yards, and refrigerated warehouses, are filled with these shipments. They are urging carriers to refrain from penalizing exporters for the delays. These penalties can equate from thousands to tens of thousands of dollars if not dismissed.
This disruption of the global supply chain has also affected the trucking industry. Shannon Newton, president of the Arkansas Trucking Association says they have already felt some impacts. Newton also stated, that "with the virus still not contained and potential treatments or vaccines unknown, it is hard to predict the peak or ultimate impact on the world's economy".
With businesses not getting the materials needed to perform their jobs, staying on schedule has been challenging for companies, especially in the construction industry. Construction project delays have significant implications. Specifically, in regard to cost. If you currently have residents making architectural changes, managers should provide a grace period to residents. These delays are simply out of your residents’ hands, and they shouldn’t be punished for this prevalent issue.
All in all, these delays and extensions are not ideal. Patience and understanding are the best practices to bring to the table when working on updates and expanding your communities.
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Franklin, Sydney."How Will the Coronavirus Affect Global Construction Commodities?"Archpaper.com, Architecture News, 10 Feb. 2020, archpaper.com/2020/02/how-will-the-coronavirus-affect-global-construction-commodities/.
Smith, Carin."Coronavirus Delays Hit Local Construction Industry." Fin 24, News24, 12 Feb. 2020, www.fin24.com/Companies/Industrial/coronavirus-delays-hit-local-construction-industry-20200212-2.
Yuen, Justin, andStanley Lo. "Novel Coronavirus: How the Construction Industry Can Manage the Impact of the Outbreak on Projects." Lexology, 13 Feb. 2020, www.lexology.com/library/detail.aspx?g=5e2711af-8a35-429f-ab19-beae9e7ff9f2
Rosa, Jeff Della."Coronavirus Disrupts Freight, Price of Oil; U.S. Impacts Could Be'Substantial'." Talk Business & Politics, 11 Feb. 2020, talkbusiness.net/2020/02/coronavirus-disrupts-freight-price-of-oil-u-s-impacts-could-be-substantial/.