The construction industry has undergone a challenging period since the government announced Covid-19 lockdown measures on 23 March. Financial pressures remain an existential threat to some companies, which could yet face bankruptcy, and construction workers continue to balance risking their safety with the financial implications of staying at home.
With six weeks passed since lockdown measures were introduced, we investigate how the construction industry is faring in the wake of the coronavirus, and what the implications of the pandemic could mean for its survival.
The coronavirus pandemic has still plunged construction activity to its lowest level in 11 years, the recent construction Purchasing Managers’ Index (PMI) revealed.
Around three quarters of on-site residential projects have reportedly halted because of the coronavirus pandemic, and there are legitimate concerns that local homebuilding firms risk going bankrupt.
Worrying statistics from the Federation of Master Builders (FMB) reveal that 31% of small to medium-sized (SME) housebuilders have new homes standing empty due to customers pulling out or delaying purchases.
This equates to, on average, seven homes per company standing empty with a cost of £629 per month in empty homes council tax.
Moreover, the FMB reports that these SME firms are not