Here’s the thing about the construction industry: Things that can’t be built in the next couple of weeks or so will still be built.
Delayed jobs are not lost jobs.
The same cannot be said of uncleaned offices and accommodation, unperformed concerts, unsuccessful hotel room beds, unregistered university students, unfulfilled lectures, unstaged exhibitions, catering. unhappy parties, unoccupied ski lodgings, unperformed plays, dinners in non-seated restaurants.
For a tough industry, there seem to be a lot of crying babies in construction.
It’s an industry suffering from relative hiccups in the midst of an absolute boom.
A solid downpour of a few weeks can cripple sites without the headlines threatening economic Armageddon.
The industry closes for a month every Christmas, but the sun is also rising.
You can tell the industry with the most political partners by the attention it receives. From CFMEU on one side to developers on the other, the spectrum of political access is fairly well covered.
Yes, the lockdown experienced in three states is a bastard and when bad luck is distributed there is no rule that it must be distributed equally.
The economic impact on any unpaid worker while we stay at home is difficult.
Government aid this time around doesn’t do much to cushion that and there are always those who fall through the cracks of the aid being offered.
After the dismantling of JobKeeper – the dismantling of the Morrison government showed no interest in recovering – the federal authorities are not “building a bridge” this time, although there is more generosity now than New South Wales is the center of attention.
For companies whose work and income is not delayed but simply disappears during the lockdown – this is absolutely cruel.
But for an industry that primarily sees its work and income delayed, well, those are degrees of difficulty in life.
Banks are supposed to be understanding during such a cash flow disruption – and they usually have been. A construction job with a decent contract is bankable.
Likewise, customers have no choice but to accept the delay. It may lead to additional costs, but what construction project doesn’t get there anyway?
For large businesses, borrowing has never been cheaper. After tax deduction and inflation, the money is free.
Any large business that can’t handle the need to float for a few weeks in the middle of a boom – and construction has been booming with the shortage of materials and skills the biggest problem so far – is probably in difficulty for other reasons.
For smallholders, now is the time to keep your financiers, suppliers, customers and employees close and well informed.
They should get used to it after last year. It will be difficult, but difficult things are happening and we continue.
Better placed than most
Of all the industries that suffer from disruptions, construction should be one of the best able to cope, but every industry and lobby group can be counted on to complain long and loud if it thinks it could. there to be a gain.
Again, yes, the delays will reduce GDP growth and a lot of people are involved, but there are a lot more people in other industries who are not getting as much attention and without the opportunity to recoup what has. missed during locking.
A rare voice of prospect among the shouting headlines this week has been Robert Mellor, the outgoing chairman of BIS Oxford Economics and a construction industry forecaster for more than four decades.
In the lower half of an article that focused on the claim that closing construction in Sydney would cost the New South Wales economy $ 700 million per week, Mr Mellor said the long-term impact of the construction industry of a two or even four week foreclosure. would be “relatively minimal” – maybe 5% less over the course of a year.
“The impact on the construction industry, what is important is that the ongoing projects will come to fruition once again as we come out of this lockdown,” he said, saying what should be obvious.
It is a question of priorities.
For all our benefits, No.1 now contains the Delta variant until everyone who wants to get vaccinated can be vaccinated.