2020 was, to put it lightly, a difficult year for the construction industry. Not only did the pandemic cause a world wide health scare, but the following lockdowns resulted in nationwide economic downturn, which turned the construction industry on its head. But as with everything in life, the seemingly endless economic upheaval was only temporary, and within a relatively short period of time the economy started its slow recovery, and the construction industry began its revival.
At Fast Pulse, as suppliers to the construction world, we saw how businesses in our industry took a beating during the lockdown and we were also fortunate enough to see just how many companies made a stunning comeback. Seeing our industry back at work, and seeing that we are almost halfway through the year, we want to look back on 2020 and see just why things took a turn for the worse, so that our clients can find put themselves in a better position for the rest of 2021, by escaping or becoming enlightened about the situation we are in.
2020 in a nutshell
In 2020, it was not just the pandemic and the lockdown that damaged our construction industry, as a lot of damage had already been done prior to the events of last year. Some of the factors included:
- A rise in the cost of materials
- A depressed and struggling economy
- A lack of foreign investment as a direct result of rating downgrades
- A reduction in government spending
The year saw a saddening 76% decline in construction works in general, and a 76.6% drop in residential buildings. As for commercial construction, this side of the industry saw an 80.8% decline in projects.
So is there anything to look forward to in the next half of 2021?
Absolutely! With the fighting African spirit, the industry is moving forward and the construction industry is likely to go from strength to strength, and it might even contribute towards job growth.
This being said, the problems that contributed to the industry’s problems have not actually been resolved. Since the issues go far beyond what happened during the lockdown, the industry will still have to find new ways to adapt and thrive.