How Did COVID-19 Affect Global Infrastructure?

How Did COVID-19 Affect Global Infrastructure?

COVID-19 came without a warning, but it made its presence felt right away and it continues to do so with the restrictions and limitations in place. This pandemic also forced a lot of industries to abruptly shut down due to unprecedented losses, especially in infrastructure and construction where projects were halted to avoid the spread of the virus.

This has caused a huge drop in activities within these industries, some suppliers of raw materials have closed down and companies have lost more than they could ever imagine.

That’s not even half of what the construction industry has gone through since the COVID-19 pandemic started early last year. Here are just some of its many effects to global infrastructure:

• Construction projects had to be temporarily — or permanently — shut down.

No country was spared of the pandemic that even the biggest economies were hurt pretty bad depending on the timing and severity of outbreaks that continue to wreak havoc in different regions.

For instance, the Asia Pacific region was the first to feel the effects of the pandemic with construction activities being halted to protect workers from getting infected by the virus.

Countries like India and Japan that announced their lockdowns later in the year were able to see some work still being completed, although it became harder to source materials and labor because of the abrupt change in the economy. China where the virus allegedly originated show the biggest shut down of infrastructure work.

• Prices for materials and labor have skyrocketed.

Other countries that didn’t completely shut down because they had lower COVID-19 cases still felt the effects of the lockdowns and restrictions of their neighboring nations.

There was a huge decline in the supply of raw materials because it took longer for these products to be shipped out. In addition, some suppliers were also forced to shut down because of the low demand for their business. This has made sourcing materials a lot harder and prices have also skyrocketed due to the scarcity of these resources.

In the Middle East, however, the pandemic along with a sudden collapse in oil prices has caused a drop in trade, mobility and asset prices, which still made it hard for global infrastructure, although the region still had some construction activities due to its economic diversification.

• Economies have suffered slowing down infrastructure projects.

Even the strongest economies around the world took a huge blow with the COVID-19 pandemic being such a sudden event. Because of the rapid disruption of economic activities—the lack of travel, businesses have to close down and people essentially working from home—the construction industry also suffered greatly resulting to huge losses both in infrastructure projects and revenues.

• Construction projects are becoming more expensive.

With a gloomy economic backdrop and a continuous challenge in dealing with this pandemic, construction firms now have to deal with rising construction costs that are now more expensive than tender prices.

For example, a study reveals that total construction costs are expected to increase by up to 2.3% in the Asia Pacific region as compared to only a 1.2% increase in tender prices for building and civil engineering projects.

It’s also the same scenario in the Middle East and Africa where construction costs could increase by as much as 2.4% as compared to only 1.7% in building tender prices.

For Glasgow however, the city region has announced a £250m funding boost for vital infrastructure across the region. Works introduced to improve transport and connectivity, and sustainable improvements for roads.

How can we proceed?

Although the global infrastructure situation still looks gloomy, construction companies can always make adjustments to continue to thrive in an ever-changing landscape.

For instance, companies taking on construction projects are now adapting post-pandemic strategies like using Glasgow measured building survey companies to gather data avoiding the many site visits and employing a lot of people to conduct manual surveys. This infrastructure report also enumerates some of the best ways to move forward with infrastructure projects considering the effects of the pandemic and how this “new normal” can be incorporated into these activities. 3D laser scanning services in Glasgow will offer that hassle-free solution and save you time and costs to get things up and running promptly. With measured building survey services, you can survey your existing site and building, and proceed with fast deliverables of as-built 2D drawings and 3D BIM models to be shared with your team. We are able to offer these cost-effective solutions!

When the COVID-19 pandemic will end, no one really knows. But as lockdowns are lessened and restrictions are becoming more lenient, construction activities can already resume to get global infrastructure back on track. At the end of the day, it’s all about adapting to new technology and maximizing resources to get the ball rolling once again.

If you’re interested in finally getting your project on the road and planning, you can receive a free quote simply by clicking here.


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    Author: Sonia