COVID-19 has made for some uncertain times. Beyond the spread of sickness, coronavirus has impacted every industry in multiple ways. Finances have been impacted along with the workforce, productivity, supply chains, cybersecurity risks, fraud risks, and more. So what does this mean for the engineering industry and what has been the overall impact so far?
At the beginning of April, New Jersey Governor Phil Murphy released Executive Order 122 which halted all “non-essential” construction in the state. Exceptions to this include projects at hospitals and schools, in transportation and utility sectors, for online or “essential” retail businesses, those contracted by federal, state or local government or under a federal deadline, affordable housing, and data centers. For all of the retail, commercial, and major residential projects that are getting put on hold, the industry is seeing a significant economic impact.
The industry impact of COVID-19 reached the United States before the virus itself. Back in February, before coronavirus spread in the US, China was suffering from the pandemic. In turn, global supply chains were affected. About 40 to 50 percent of the world’s production is in China. When factories started to close their doors, the whole world felt the impact. Immediate impacts were felt at the subcontractor middle market of the industry when many construction sites halted or canceled operations.
Long term impact may be seen by engineering and construction companies that serve energy and chemical companies. Oil prices are plummeting so many core energy companies are seeing an immediate impact on their revenue. Those companies that serve these markets are projected to see a longer-term impact on overall revenue.
Read a thorough breakdown of steps to consider if your business is being negatively affected by COVID-19 >>
The future of engineering and the industry as a whole seems unclear now, but we’re all in this together! NJSPE will keep you updated with the most important information. To receive real-time industry updates, become a member of NJSPE! Check out our different types of membership and consider joining today.