ABC-SEMI Issue 2 2020

Southeast Michigan Contractors  Issue 2 2020 7 COVID-19 OUTBREAK Gamet is providing remote online instruction for first aid, CPR and OSHA classes for ABC companies who want to sharpen the skills of their employees during the down time. MATERIAL/SUPPLY DELAYS Many local supply houses shut down after Gov. Whitmer’s stay-at-home order, even some who serviced essential industries. In addition, Chinese government containment efforts and quarantines meant that commercial builders that relied on foreign-made goods or materials experienced supply shortages within just a few weeks of virus exposure in the United States. It’s unclear what kind of delays will result as the industry begins a ramp up in projects commencing in early summer. CONCERNED CLIENTS AND OWNERS ABC SEMI Membership Director, John Manor is finding that the most devastating consequence of the COVID- 19 virus is the uncertainty it creates in customers who are contemplating projects. He said that financing may dry up for new projects and customers may table current projects until the uncertainty passes. Past national crises have shown historic decreases in construction financing and a greater focus on risk mitigation and conservative underwriting. Even with historically low interest rates making this the perfect time to finance a project, not all owners may be willing to take on the risk. “I am already hearing the discussions among our members that they expect to see higher priced projects reduced and some canceled,” he said. ABC members can monitor developments and research guidance about the coronavirus pandemic at abcmi.com/ News/COVID-19 and abc.org/coronavirus and access emergency preparedness and response resources, including COVID-19 safety materials, toolbox talks, sample project shutdown/startup procedures, and sample small business continuity plans. 2 3