The COVID-19 Impact on Construction October 13, 2020 This study is part of KatzAbosch’s ongoing commitment to conduct and share timely information to construction companies and the professionals who manage them. The COVID-19 pandemic has, as we all know, hit the industry with unprecedented labor and financial obstacles. To get a sense of how construction companies are responding we reached out to our clients and contacts in June and invited them to participate in our peer survey. The goal was to provide general benchmarking data to help reinforce operational best practices and highlight planning opportunities to allow your company to thrive. COVID-19 Construction Industry Outlook Construction companies were deemed essential as COVID-19 developed into a pandemic. As such, companies had to aggressively undertake workflow changes that impacted day-to-day operations for them. Everyone in the company, from the office staff to the workforce on the job site, was impacted by the implementation of COVID-19 safety criteria. Sick leave and other employment policies were scrutinized and adjusted. The graph to the right represents three themes emerging from the survey. These subjects will be reviewed in further detail throughout the report: Cash Flow To prepare for a decrease in cash flow, we recommend focusing on right-sizing your company and building relationships with customers and suppliers. Labor, the timing of work, and maintaining a supply chain are some of the largest variables the construction industry deals with daily. Labor To offset labor retention issues caused by COVID-19, companies should contemplate, if they have not done so already, their sick-leave policies and communication strategies. Additionally, companies can take advantage of the payroll tax credits for paying employees to stay home when sick due to a COVID-19 related matter. Safety The top three safety challenges with employees returning to the job site are measured. High on this list are companies concerned about not obtaining enough PPE to job sites being hindered due to precautions put in place to protect employees. Download the full Construction Community COVID-19 Impact Report to learn more about balancing priorities between cash and employee safety, in order to be successful: Cash flow and labor retention outlook Insight on how your peers have been impacted by the COVID-19 pandemic, including revenue and safety concerns How peers are planning and anticipating for spring 2021 If you have questions or would like additional help, please contact us. Learn more about our accounting services for construction and real estate. About KatzAbosch: Founded in 1969, KatzAbosch is one of the largest CPA and business consulting services in the Mid-Atlantic region. As an accounting firm, our mission is to provide the highest quality accounting, tax, financial and management consulting services to our regional clients. We understand the needs and challenges of our clients and we have made it our obligation to create, grow and protect asset value. KatzAbosch is consistently named a Best Accounting Firm to Work For in Accounting Today and has been named a Top 200 Accounting Firms in the Nation by Inside Public Accounting. Our firm is also ranked among the Top 15 Largest Accounting Firms in the Baltimore Area by the Baltimore Business Journal and a Top Workplace four times by The Baltimore Sun.