How is the Whatcom construction industry withstanding the coronavirus impact?
Given the shock the coronavirus has had on the economy, early on it appears the construction industry is absorbing the blow and adapting.
Many projects are continuing on schedule with work sites taking measures to prevent the spread of the disease. That’s according to Lance Calloway, northern district manager for AGC Washington, which represents general contractors. He spent the past few days speaking to local contractors in the area.
In the first few days the outbreak picked up steam, the key was adapting daily with the ever-changing situations and requirements to ensure construction companies protect their crews and to prevent the spread of the virus, Calloway said.
One example of that is the residential hall project that is under construction at Western Washington University. The job site was shut down for a few days after it was discovered one of the workers tested positive for COVID-19. Western announced on Wednesday, March 18, that construction was starting back up after it reviewed new plans presented by the contractor Lydig Construction and determined CDC guidelines were being met.
Nationally, the coronavirus outbreak is having an impact on construction projects. According to a survey done by Associated General Contractors of America, the pandemic has halted or delayed projects for 28% of contractors. The survey noted that 16% of the contractors surveyed said equipment and product delays were an issue.
Prior to the outbreak, Calloway said it was shaping up to be a solid construction season because contractors already had many projects in the pipeline for summer. He said a few contractors have mentioned that some developers were considering postponing a few new projects, but for now most seem to be moving forward as planned.
Calloway added that it was helpful that the federal reserve lowered interest rates to nearly zero; he expects that will entice some developers to move forward with projects.
At least early on, it appears construction is in much better shape than during the global financial meltdown 12 years ago. During that time, the local construction industry was among the hardest hit and took the longest to recover, not doing so until around 2016.
Bellingham is expecting to see some major construction projects in the coming months.
Along with major projects already under way at Western and Whatcom Community College, work is expected to begin this year on condominiums in the waterfront district near the Granary Building.
The two major Barkley area projects — an apartment complex and a new home for the Scotty Browns restaurant and a fitness studio — are well along. Work is also well under way for the student housing project going in on North State Street.
Construction is a major economic driver, not only in terms of employment, but also the wages are typically higher than other jobs.
This is the time of year when construction employment ramps up; in February there were an estimated 7,600 people in Whatcom County employed in the industry. During the summer months that total can sometimes climb near 10,000, according to data from Washington’s Employment Security Department.
